The international rules on Article 6.2 and Article 6.4 require the governments of participating Parties to make crucial decisions. For Article 6.2, decisions involve approving activities and granting authorisations, among others. Under the PACM, countries also need to decide certain aspects, such as defining eligible activities. The national procedures and rules to operationalise Article 6 need to be anchored in legal foundations and mandates.

For a government to effectively implement Article 6, it remains essential to establish the appropriate governance structures and institutional arrangements. This involves defining roles and responsibilities for key actors, such as national focal points, to carry out their tasks and obligations under Article 6.

The designation of a Designated National Authority (DNA) is a mandatory requirement for Article 6.4, emphasising the integral role this entity plays in facilitating international cooperation. While not mandatory for Article 6.2, appointing an Article 6 focal point is highly recommended and serves as an important initial step in many countries. Although the DNA and Article 6 focal point can be separate entities, their roles often complement each other, enhancing coordination efforts. In countries with ample capacities, the focal point may be a well-established institution, such as a dedicated carbon market office. Conversely, in other nations, a focal point might be an individual supported by an alternate, showcasing the adaptability of this approach to various national contexts.

To effectively participate in Article 6, a country must establish clear operational procedures covering key aspects—such as authorisation processes, and the tracking and reporting of ITMOs—in order to comply with mandatory participation requirements. Beyond these core functions, additional operational procedures are important to provide clarity for project developers and to foster a robust pipeline of mitigation activities. This may include adopting or specifying relevant methodologies, standards, and guidelines for cooperation under Article 6, as well as implementing safeguards to uphold environmental and social integrity throughout the process.

This section sheds light on some procedures and requirements, with a particular focus on activities generating ITMOs under Article 6.2. Operational procedures at the national level under the Paris Agreement Crediting Mechanism (PACM) are addressed separately in the dropdown section Engaging in the PACM.

Parties interested in participating in Article 6 activities must diligently track and account for the authorisation, transfer, and use of ITMOs under Article 6.2. Similarly, Parties must record Article 6.4 emission reductions (A6.4ERs) generated under Article 6.4 Mechanism (A6.4M), whether or not they are authorised for international transfer and use. Tracking and recording of carbon credits are conducted using specialised databases known as carbon credit registries. Under Article 6, three separate registries that are responsible for recording transactions, with two exclusively designated for Article 6.2 activities and the third specifically for Article 6.4 activities.

Numerous steps are involved in the process of generating mitigation outcomes and allocating revenue to diverse groups, including activity developers, governments and other (local) stakeholders. The host country government holds the potential to influence or stipulate provisions for many of these stages, with decisions contingent on the strategic objectives for engaging in Article 6. This section explores
considerations related to price generation for ITMOs, the sharing of benefits between host and buyer countries, the sharing of benefits on the national and sub-national level, as well as the fee structure designed to cover administrative fees and opportunity costs.

Article 6.4 of the Paris Agreement establishes the Paris Agreement Crediting Mechanism (PACM). It works as a UNFCCC-supervised crediting programme that issues carbon credits for projects or activities that cut emissions or remove carbon from the atmosphere. These credits, called Article 6.4 Emission Reductions (A6.4ERs), may be traded internationally if they are authorised by host country governments.

Voluntary carbon market (VCM) activities can be authorised by Parties under Article 6, with decisions shaped by national strategic considerations. If a country opts to integrate VCM activities into its national carbon market framework (or equivalent system), the rules and requirements of Article 6 must apply, just as they do for any other authorised activities.

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