Why Article 6?
The story behind our name
What is Article 6?
Article 6 is the part of the Paris Climate Agreement that concerns the carbon market.
The Article 6 negotiations that occurred during the recent COP 26 resulted in a rulebook which governs the creation, accounting for, and verification of carbon credits. This is done through mechanisms such as requiring corresponding adjustments on international trades of carbon credits.
The importance of corresponding adjustments
This means that the host country (the country where the carbon project is located) has to authorize the transfer of carbon credits for sale, and then adjust its own greenhouse gas inventory to reflect the transfer, which
Ensures that carbon credits are not double counted
Empowers the host country to decide whether or not it wants to sell its credits
Creates an economic liability for the host country due to the additional actions it needs to take to balance out its Nationally Determined Contribution should it decide to sell its credits - which avoids excessive credit issuance
