The UN body tasked with implementing the Paris Agreement’s carbon market, the Article 6.4 Supervisory Body, has adopted a new standard to support climate projects in communities lacking access to essential services.
The standard includes the concept of ‘suppressed demand’, which opens the door for more inclusive climate action in regions with limited access to basic services such as water and sanitation.
It allows climate projects that meet these basic needs to earn carbon credits, even if these projects lead to increased emissions, in the process ensuring that people in low-income communities can benefit from climate finance.
‘Basic human needs’
“We’ve recognised that baselines can be established with reference to basic human needs where they aren’t being met,” commented Martin Hession, chair of the supervisory body. “This approach allows the mechanism to support real development benefits, particularly in communities where access is currently limited.”
A draft standard has been developed by the Methodological Expert Panel (MEP), addressing standards for non-permanence and reversals. The MEP is set to make its formal recommendations to the UN body, ahead of a further consultation process.
‘Significant work to do’
“While there is significant work to do, we are committed to securing a non-permanence and reversals standard this year,” Hession added. “We expect to adopt a standard at our next meeting in October once we receive the final recommendation from the MEP.
“I know there is significant stakeholder interest in the initial drafts produced by the MEP last month, and there has been strong engagement during the MEP’s initial consultation. Of course, there will be another opportunity to comment on the final recommendation once it has been formulated by the MEP in September.”
