Article 6 Logistic Sector Scoping Study

**introduction to gggi**

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.

**general information**

• Project: Supporting Preparedness for Article 6 Cooperation (SPAR6C)
• Duty Station: Bogotá, Colombia or Remote (within Colombia)
• Contract Duration: 01 December 2024 - 15 April 2025
• Consultant Level: Level 4
• Total Fees: 19,920 USD

**project background**

The Carbon Pricing Unit (CPU) of GGGI is implementing several programs related to scaling up international carbon trading, now covered by Article 6 of the Paris Agreement. By opening these markets and the resultant flow of transactions it is envisaged a robust and reliable global price for carbon can be established, something many governments and private sector actors have long called for as a way to motivate the transformational change needed to achieve the ambitious goals of Paris. GGGI’s Article 6 programs provide technical assistance and capacity building to government counterparts to improve their readiness for Article 6 engagement. These programs support the design of projects and policies for pilot transactions and strengthening of institutional frameworks required for their implementation.

The Supporting Preparedness for Article 6 Cooperation (SPAR6C) Program, funded by the International Climate Initiative (IKI) of the German government, is a five year, 20M EUR program from 2022 to 2027. Its objective is to use Article 6 (A6) cooperative approaches to engage the private sector in NDC implementation and to raise ambition. This will enable cost-efficient, flexible, high integrity carbon markets with positive sustainability impacts. Transformative design of A6 pilots for real transactions of internationally transferred mitigation outcomes (ITMOs) will be enabled by research-based capacity building in four partner countries: Colombia, Pakistan, Thailand and Zambia. The program consists of six work packages, of which two are centrally managed and four are country driven. In the first two, best practice tools and approaches to implement cooperative mechanisms will be developed, underpinned by an international forum - a community of practice of Article 6 implementing countries - that brings together countries and practitioners, who share the common objective of raising ambition through markets. In-country implementation will focus on three areas of work in each of the four countries: 1) Long-term planning, 2) institutional readiness to transact and 3) pilot design and transactions. More than eight A6 pilot programs will be implemented in Colombia, Pakistan, Thailand and Zambia based on a toolbox of innovative guidance and approaches for transformative A6 design.

The program is implemented through a consortium led by GGGI and consisting of UNEP Copenhagen Climate Centre, Carbon Limits AS, GFA Consulting Group GmbH, and Kommunalkredit Public Consulting GmbH. SPAR6C is supporting Colombia in developing its institutional, regulatory, and technical framework and capacities to embark on Article 6 transactions of ITMOs during the NDC implementation period 2020-2030 of Paris Agreement.

Implementation of Article 6 in Colombia requires to analyze what subsectors could have better possibilities and the degree of readiness to access carbon markets, for which different conditions must be evaluated to determine viability for projects under Article 6.

Evaluation of projects by subsector in the readiness and needs assessment of Colombia indicated that the energy sector has better conditions to develop projects under article 6 considering the mitigation measures identified and quantified by the NDC update and their degree of implementation or progress, the capacities of the sector in institutional terms or experiences in the voluntary carbon market, additionality for Article 6 of the Paris Agreement, the instruments or information systems, among others; followed by the housing and agriculture sector. However, this assessment was carried out at a sector-wide level and not to a degree of a mitigation measure/activity/subsector.

To conduct the sub-sector analysis, SPAR6C constructed a project database related to Article 6, designed a method to evaluate projects in the framework of Article 6, with the criteria defined by the UNFCCC for now, and evaluated the potential to transition some projects from CDM to Article 6.4. This exercise is still under development and is helping the Ministry to identify the potential emissions that will be sold or can be traded in the carbon market if accomplishing all the requirements from the UNFCCC and the national government.

Moreover, this analysis can be completed using Guide 2 “Developing an A6 Host Party Strategy” and Guide 5 on “Screening Article 6 Activities” of the SPAR6C glob