Singapore Gold Standard and Verra release initial recommendations outlining progress

Singapore’s National Climate Change Secretariat (NCCS) in the Strategy Group, Prime Minister’s Office and the world’s largest independent carbon crediting programmes – Gold Standard and Verra – are working together to develop an Article 6.2 Crediting Protocol (“Protocol”) aimed at supporting countries in their use of Article 6 to achieve their Nationally Determined Contributions (NDCs) and sustainable development goals.

Article 6.2 of the Paris Agreement allows governments and private sector participants to cooperate internationally through market-based mechanisms to meet their climate targets. One option under Article 6.2 is for governments to work through existing independent carbon crediting programmes, which are already operational and widely used by market participants, to certify their emission reductions and removals, thereby relieving them of the administrative burden of having to develop their own approaches (e.g. standards for carbon credits).

The intention for NCCS, Gold Standard and Verra to collaborate to create standardised and streamlined procedures for governments to work with independent carbon crediting programmes to implement Article 6.2 was first announced at COP28 in December 2023. In the absence of such a framework, countries could take divergent approaches, which could hinder the implementation, scaling, and integrity of cooperation under Article 6.2.

The initial recommendations set out key concepts and processes that will form the basis of the Protocol, which will be further developed and published in full following the conclusion of COP29. The report also includes recommendations on how governments can facilitate a clear, efficient, and effective Article 6.2 market. The report also calls on governments to take steps to limit regulatory and market risk associated with Article 6.2 transactions, for example through robust templates for Letters of Authorisation. 

The development of the initial recommendations has been informed by engagements with governments and other market experts over the past year. The final Protocol will incorporate relevant decisions from COP29, with implementation intended to start in 2025. The three organisations will continue to engage and seek feedback from stakeholders when developing the final Protocol, to ensure that it can serve as a practical enabler of and complement to Article 6.2 rules adopted within the United Nations Framework Convention on Climate Change (UNFCCC).

The initial recommendations can be downloaded through this link: Operationalizing Article 6

Benedict Chia, Director-General (Climate Change), National Climate Change Secretariat, Singapore, said: “It is important to have a protocol that facilitates Article 6.2 cooperation between independent crediting programs and governments. This would ensure that Article 6.2 can operate efficiently.”

Margaret Kim, CEO of Gold Standard, said: “If a market is to be trusted, it must be built on solid foundations. For Article 6 to be reliable and efficient, governments and standards need to work together. These initial recommendations outline how, by doing so, they can deliver impact for both the climate, and sustainable development.”

Mandy Rambharos, CEO of Verra, said: “Independent crediting programmes offer comprehensive standards and verification mechanisms that are primed and ready for use by governments in their cooperation under Article 6. The positive reactions we are already receiving from government stakeholders demonstrate how independent standards, that have grown up in the voluntary carbon market, have built a robust and credible foundation that can seamlessly integrate into the infrastructure of compliance markets and Article 6. Together, we can enable these new markets to be operational and effective much more quickly than otherwise possible.”