Lisa DeMarco at Resilient LLP, says this on International Emissions Trading Association (IETA) call last night London time:
On why the tracking provision of the new article 6 rules past COP29 is very important regarding the authorization of projects/credits:
“…But the limits and how it plays into the text is still problematic, and I would just note that that draft World Bank letter of authorization encourages parties, regardless of whether it’s authorized for other international mitigation purposes, to make first transfer defined as upon authorization or issuance,” DeMarco said.
Audio of the last bit of the second IETA webinar yesterday:
Here is a snip of that letter template, published before the end of COP29 at about 5am on Nov. 24 Baku time, remember:
Resilient LLP press release
World Bank Group Releases Template Article 6 LOA and Related Guidance
By DT Vollmer
Resilient LLP is pleased to share that the World Bank Group has today released guidance on Letters of Authorization and Acknowledgement as part of its Article 6 Approach Paper Series. The guidance includes a Letter of Authorization that provides a common template intended to be used for all authorizations to be granted under Articles 6.2 and 6.4 of the Paris Agreement.
The Letter of Authorization is intended to be used with schedules that may be specified by each country and includes illustrative terms and conditions that are most likely to maximize investment and value for the country. It also allows each country to actively choose whether a project is intended to be authorized (subject to corresponding adjustments and a Letter of Authorization) or outside the scope of authorization (ideally subject to a Letter of Acknowledgement in order to increase certainty and corresponding investment value). A template Letter of Acknowledgement is also provided. This common template (with schedules) is intended to simplify the process for authorization, reduce transaction costs, and allow flexibility for bilateral arrangements.
The guidance also includes a template Letter of Authorization developed by the Multilateral Investment Guarantee Agency (MIGA), which presents illustrative terms that are conducive to facilitating insurance for breach of a Letter of Authorization.
For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.
World Bank on Letters of Approval