Key results of COP 26 and implications on management and implementation of international carbon market mechanisms in Viet Nam (cont.)

Part 2: Cooperative approaches under Article 6.2 and pro-activeness of Viet Nam

The CMA.3 Decision of COP26 also includes guidance on cooperative approaches under Article 6.2 of the Paris Agreement. This guidance requires that internationally transferred mitigation outcomes (ITMOs) are real, verified and additional and generated in respect of or representing mitigation from 2021 onward. The following requirements are note-worthy and show high climate ambition for Article 6.2 cooperative approaches:

• Measurement unit: ITMOs are measured in metric tonnes of carbon dioxide equivalent (tCO2 eq) or in other non-greenhous gas (GHG) metrics that are consistent with the NDC of the participating countries;
• Purposes of use: ITMOs includes mitigation outcomes authorized by the participating counties for use towards NDCs or other international mitigation purposes.
• Corresponding adjustment: applied to all ITMOs (including those for use for other international mitigation purposes and to ITMOs that are measured in other non-GHG metrics) and shall be applied for the year in which the mitigation outcomes occurred.

Besides, CMA.3 also provides for regulations related to reporting and infrastructure (registry, database, centralized accounting and reporting platform) for Article 6.2.

Cooperative approaches under Article 6.2 are developed based on bottom-up approaches, allowing participants to be pro-active and flexible in developing rules, modalities and procedures for implementation. Viet Nam can take the advantages from Article 6.2 to attract finance for technology transfer towards low carbon development, meeting the conditional target and increasing the ambition of its NDC.

To be better prepared for pariticpation in Article 6.2 cooperative approaches, Viet Nam will need to identify national strategic directions, develop legal framework and institutional arrangements and perform pilot activities for Article 6.2.

Loan Nguyen (summarized and analyzed).

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