This document discusses strategies for increasing interplay between Article 6 of the Paris Agreement and carbon pricing, climate policies, and removals. It provides examples of pilot projects that credit new policies through Article 6 mechanisms, such as crediting the effects of energy tariff reform in Uzbekistan. The document argues that Article 6 interplay could be increased by supporting countries that align domestic carbon markets with Article 6 and by building evidence and capacity for removals projects in the Global South.

1. Vision and Objectives
3B: Strategies for Article 6
and interplay
Chris Shipley – Head of Global Carbon Markets
UK Department for Energy Security and Net Zero
Chris.shipley@beis.gov.uk

2. Vision and Objectives
A non-exhaustive list…
Carbon pricing
• Explicit pricing: Carbon tax/ETS and Article 6 interplay
• Implicit pricing: Fossil fuel subsidy reform
Climate policies
• National energy access programmes
• Removals
A6 interaction: carbon pricing and climate policy

3. Vision and Objectives
Today, a limited role:
• Domestic: use towards tax obligations
• International: towards tax/ETS obligations
But Article 6 interplay could increase if, i.a.:
• Domestic rules come into line with:
• A6.4 (authorized or not)
• A6.2 using VCM standards
• International approaches:
• Permit broader use
• Begin to require removals
• Consideration of A6 is mainstreamed into NDC planning
Explicit carbon pricing and Article 6 interplay

4. Vision and Objectives
Subsidy reform can be extremely challenging
• Subsidies remain high ($7tn, 2022 – IMF)
• Many reforms are diluted or fail
TCAF Uzbekistan Subsidy Reform is first of a kind A6 policy project
• Credits effects of energy tariff reform: conservation, energy efficiency
• Results based and ITMO payments help manage distributional impacts
• Builds on existing social protection mechanisms (sequenced)
• Pilot that should inform replication, and reform of other subsidies
Implicit carbon pricing and A6 interplay

5. Vision and Objectives
Today, limited to project/PoA levels, but:
• Better MRV, methodological developments, increased role for governments in A6 can all better
support scaled up energy access programmes.
Standardised Crediting Framework (Ci-Dev) builds on 9 CDM EA projects in Africa to:
• Support more host country ownership
• Standardise approaches to monitoring, including baseline and project emissions parameters
• Support positive lists with transparent eligibility criteria
• Enhance private sector engagement through policy frameworks
Climate policy and A6 interplay: national energy
access

6. Vision and Objectives
Very few engineered removal projects relative to reductions market
• Of these projects, very small proportion of results have been delivered.
Article 6 interplay could increase with:
• ETS integration (sequencing, e.g. R&D/non-market support>VCM>domestic/international)
• Purchase obligation
• Strengthened evidence base of potential host countries, corresponding capacity building to
Global South
• Stronger MRV
Climate policy and A6 interplay: removals

7. Vision and Objectives
• Supporting any countries seeking to align domestic markets with A6
• Sharing lessons from pilot projects that credit new policies
• Building evidence base, deploying capacity building towards, potential removals supply
• Considering policy sequencing
Overall, increase interplay by: