This document discusses the format and domestic processes for authorizing cooperative approaches and ITMO transfers under Article 6 of the Paris Agreement. It suggests that authorizations should include minimum required elements to enhance comparability and ensure key information is provided. Possible formats include authorization letters, templates, or annexes to laws/regulations. Domestic processes are complex and typically involve multiple steps - authorizing the cooperative approach, entities, generation of outcomes, and ITMOs for use. Minimum requirements in an authorization template could help standardize the process. National frameworks are still developing but generally follow a sequential approach with multiple instances of authorization required before ITMOs can be used.

1. Climate Change
Expert Group
Format and domestic processes of
authorisation
_____
Sandra Greiner (Climate Focus)
Based on “The birth of an ITMO: authorisation under Article 6 of the Paris
Agreement”, L. Lo Re, J. Ellis, and S. Greiner (2022, draft)
CCXG Global Forum | 14 September 2022

2. What needs to be in the authorisation and for whom?
Two target audiences
Market
participants
Participating Entities
ITMOs for a use
Cooperative Approach
3 Elements of
authorisation
1
2
3
See Table 2 of “The birth of an ITMO: authorisation under
Article 6 of the Paris Agreement” (draft)
• IR: Copy of authorisation, authorised
entities
• AI: Information on authorisations for use
of ITMOs
• RI: Authorisations and information on
authorisations for use of ITMOs

3. What are the possible authorisation formats?
Authorisation letter by
mandated national authority
Authorisation template at
international level
Annex to law/regulation
Article 6 is
silent on
format of
authorisation
+
-
+
-
-
+ Enhances comparability across Parties and ensures
minimum information is provided
UNFCCC guidance may provide minimum requirements and Parties may add additional information
Enhances certainty for market participants and
allows for formulation of national criteria
Short term feasibility
Lacks national conditions
Significant lead time for passing a law
Lack of experience with Art 6 cooperation
Lack of transparency and standardisation

4. Authorisation of cooperative
approach
Text for minimum required elements of an authorisation
under Article 6*
(*Example texts are for Party A, but can be mirrored and applied for Party B)
Authorisation of cooperative
approach
Authorisation of cooperative
approach
Authorisation of cooperative
approach
“Party A authorises the
cooperative approach [in
sector/for the mitigation
activity/etc] with Party B”
Authorisation of the use of
ITMOs for a specific use
“Party A authorises the use of
ITMOs [from project X registered
under the carbon standard Y /
under the cooperative approach]
generated in Party A for use
towards the achievement of
[Party B’s] NDC”
Authorisation of an entity to
participate in a cooperative
approach
“Party A authorises
[public/private] Entity Y to
participate in the cooperative
approach [to
purchase/transact/other...]”
See Table 7 of the discussion paper: The birth of an ITMO: authorisation under Article 6 of the Paris Agreement (draft)

5. National processes are however more complex
Authorisation of
cooperative
approach
Generation of
mitigation outcomes
Authorisation of
ITMOs for a use
Submission of
application
First transfer
Domestic legal
framework
Definition of
Authorising entity
Eligibility criteria
(sectors, mitigation
activities, standards,
entities)
Conditions for
authorising ITMOs
Pre-Authorisation
Confirmation
Evaluation by
participating Parties
Bilateral agreements
Authorisation of
entity (or this
may come later)

6. Conclusions
Minimum requirements for an authorisation letter could usefully be defined at
the level of the CMA.
For this, a template could be elaborated as part of the reporting outline of the
IR (and possibly for AI and RI as well).
National regulatory frameworks for Article 6 are still at early stages but show
the need for a sequential approach. Typically, authorisation of the cooperative
approach and the participating entities takes place before authorisation of
ITMOs for a use.
Different terminologies are in use, including pre-authorisation, endorsement,
no-objection and authorisation for the first instance of authorisation and
authorisation, examination or confirmation for the second instance.
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2
3
4

7. THANK YOU!
Climate Change
Expert Group
http://oecd/ccxg
Luca.LORE@iea.org
Jane.ELLIS@oecd.org
s.greiner@climatefocus.com