Adapting CDM methodologies for use under Article 6 of the Paris Agreement: final report

In: Climate change 2024, 1

In: Research Project

Abstract

This study assesses whether existing international carbon market methodologies for determination of additionality and baselines and monitoring, particularly those from the Clean Development Mechanism (CDM), can be adjusted to transition to the Article 6.4 mechanism. We highlight the necessity of drawing from the experiences of the Kyoto Protocol. CDM methodologies need to be modified to align with the more rigorous requirements of Article 6.4 of the Paris Agreement. Reaching consensus among Article 6.4 Supervisory Body (SB) members on developing a methodology guidance has been challenging and shows that there is a wide range of interpretation of the Article 6.4 methodology requirements. On this basis, we discuss different options to operationalise the Article 6.4 methodology requirements and focus on the option to develop overarching methodological tools that can be applied to make CDM methodologies "Article 6.4 proof". We illustrate this approach by applying it to two CDM methodologies, ACM0005 ("Increasing the blend in cement production") and ACM0006 ("Electricity and heat generation from biomass"). For these methodologies, we propose specific adjustments to ensure alignment with Article 6.4 requirements, particularly regarding additionality determination, avoidance of lock-in of emissions, quantification of emission reductions and monitoring, reporting, and verification (MRV).