By Mathew Carr

Nov. 20, 2024 — Baku, Azerbaijan — The secretariat of the UN Framework Convention on Climate Change is hiring companies to create a registry to track ownership of Article 6.4 carbon credits and an interim version will be ready by the end of next month.

The purchase of the 6.4 mechanism registry IT solution is ongoing, along with the procurement of the solution for the international registry, said a person familiar with the secretariat’s work.

The registries have the potential to become key pieces of infrastructure for carbon markets, which will replace the market for crude oil as the world’s most traded commodity …potentially at least. The registries track issuance of credits and ownership over time and show when they are retired (used) by countries and companies to meet emission-limiting targets.

They will enhance transparency and accountability in the carbon markets, which have been criticised and demonised the past two decades by the mainstream press and environmental lobby groups. Eventually, markets under articles 6.2, 6.4 and 6.8 of the Paris deal might merge…and existing voluntary markets might join it too.

Verra, the voluntary carbon-standard setter, could shift its registry to the new one being developed by the secretariat, according to a different person familiar with that move.

The secretariat’s interim mechanism registry will be capable of holding A6.4ERs and CERs eligible for transition and use in the first Nationally Determined Contribution period, the person familiar with the secretariat’s work said. I understand this to mean the 10 years through 2030.

Certified Emission Reduction (CER) credits were created under the Clean Development Mechanism (CDM) of the Kyoto Protocol. Some of these issued since earlier this century will be allowed into the current “Paris climate agreement era”, yet it’s still unclear how many, according to one UN envoy I spoke with yesterday who said she was involved in the CDM talks. I’ve not verified this.

“The interim registry will become operational before the end of 2024,” the first person familiar said.

Text published last night at 11:30 pm in Baku did not include this timing.

As the procurement process is ongoing, the person familiar declined to provide further details on the provider at this time.

Here is the full draft text on article 6.4 from last night.