Progress for bilateral cooperation under the Paris Agreement’s Article 6

The Swedish Energy Agency is working closely with potential activity developers and host countries to develop bilateral cooperation under Article 6 of the Paris Agreement. Next steps involve a procurement of activities for the generation and contracting of emission reductions.

Article 6 of the Paris Agreement allows countries to collaborate to achieve their national contributions (NDCs) and to increase climate ambition. Under Article 6, countries can cooperate bilaterally to reduce emissions and transfer emission reduction units – so called ITMOs (Internationally Transferred Mitigation Outcomes) - from a host country to a buyer country.

Since Article 6 allows countries to reduce emissions in a cost-effective way, more mitigation can be achieved than would otherwise be possible. We are now in the beginning of building a portfolio of Article 6-collaborations through discussions with potential host countries and with possible mitigation activity developers, says Sandra Lindström, Head of International Climate Cooperation at the Swedish Energy Agency (SEA).

Currently, SEA is providing support to six selected projects in six different countries for their development of Mitigation Activity Design Documents (MADD). These documents should define in detail how emission reductions will be achieved and calculated, as well as how the transfer of ITMOs will comply with the Article 6 framework which is being negotiated under the UNFCCC. This development of MADD is expected to be completed by the summer of 2021, as SEA enters the next phase of the portfolio process: the procurement of emission reduction units from a selection of activities.

In order to formally establish agreements between SEA and activity developers for the contracting of ITMOs, a procurement will be held. As a result, one or a few activities within a host country will be selected based on certain criteria, such as environmental integrity and contributions to sustainable development. SEA expects to post the invitation for procurement applicants in July 2021. The invitation will be announced on the European database TED (Tenders Electronic Daily), as well as here on SEA’s website.

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