The United Nations’ Article 6.4 Methodological Expert Panel (MEP) convened in Bonn during the last week of May for their 6th meeting (MEP 006) to discuss recent developments in Article 6.4 Methodologies. The group of experts focused on two key topics: suppressed demand in mechanism methodologies and the applicability of removal guidance to emission reduction activities.
Following the meeting, the MEP released three key documents: a draft standard on suppressed demand, a concept note on removal methodologies, and a meeting report summarizing additional themes under discussion. These developments mark meaningful progress in the Paris Agreement Crediting Mechanism (PACM) and offer a clear signal on the direction the mechanism is heading.
The MEP & Article 6.4
The MEP is a specialized group of UN-appointed experts that supports the Supervisory Body in the development of methodological standards and guidelines for the Article 6.4 mechanism. Article 6.4, also referred to as the PACM, establishes a centralized UN-supervised carbon market. It enables countries (and private entities) to generate and trade carbon credits aligned with their NDCs. Its objective is to ensure a high-integrity, transparent, and robust global carbon market. Officially adopted in November 2024, the mechanism is now moving into operational implementation, with the MEP playing a central role in shaping its technical foundations.
Draft of Suppressed Demand Standard
Suppressed demand refers to situations where communities consume very low levels of energy (or services) due to barriers like poverty or insufficient infrastructure. The draft standard sets out requirements to recognize suppressed demand in a consistent way, with appropriate considerations and clear parameters.
Key issues addressed include the risk of over-crediting, which can occur if demand baselines are set above what is considered basic human needs. To prevent this, the draft defines quantitative thresholds for essential service levels, helping ensure that crediting is both accurate and equitable.
The standard also emphasizes the importance and need of strict and regular monitoring. It proposes that conditions be reassessed every 1, 2, or 5 years (final interval still to be decided) to verify that suppressed demand persists.
Overall, the standard (whose entry into force date is not set yet) is designed to ensure additionality of projects. In other words, those reductions would only happen due to Article 6.4. This aligns with the United Nations' goal of issuing high-integrity credits, thereby reinforcing trust in both the carbon offsets markets.
Concept Note on Removal Standard
Unlike the suppressed demand document, this is not a standard but a guidance note. It outlines how removal standards will be developed and the key parameters that will be considered. Similarly to the methodologies standards (which applies broadly to all projects), the removals standard discussed should apply to all projects with removals and emission reductions activities with a risk of reversals.
The note stresses the need for flexibility: certain projects should be exempt from applying full requirements to GHG reservoirs that are outside the project’s control. It acknowledges that not all elements of the standard will be applicable to every project type, and that adjustments will be needed to reflect this diversity. It also signals that implementation approaches should allow for context-specific tailoring to support project viability across sectors.
The note also focuses on managing reversal risks, a key concern in the Voluntary Carbon Market (VCM), recently addressed by ICVCM experts. This includes guidance on robust monitoring, reporting, and contingency measures. Leakage prevention and risk management are also important strategies.
Overall, the note highlights the importance of avoiding and mitigating reversals in order to ensure high integrity credits, while allowing for flexibility to not restrict complex project types.
Broader Progress: Tools and Methodology Updates
In addition to the two main documents, the MEP also reviewed the development of three new tools intended to support the integrity and consistency of Article 6.4 projects. Though not yet public, the tools aim to demonstrate project additionality and reduce risks to credit quality:
- Investment Analysis Tool: Evaluates if a project genuinely requires carbon credit support to be financially viable, helping assess its additionality.
- Lock-in Risk Tool: Uses a step-by-step approach to assess whether a project might create long-term reliance on carbon-intensive technologies, potentially delaying a transition to cleaner alternatives.
- Common Practice Tool: Provides criteria to determine if a project is truly additional in regions where similar activities are already common, including guidance on defining the relevant area and comparing comparable projects.
These tools are designed to bring greater clarity, transparency, and comparability to key assessments in order to strengthen market confidence.
The MEP also discussed plans to modernize seven Clean Development Mechanism (CDM) methodologies, covering areas like renewable electricity, landfill gas usage, and solid waste emissions.
Importance and Implications of the Drafts
These documents mark a significant step forward in operationalizing the PACM. The UN is clearly aligning its approach with broader VCM efforts to enhance credit integrity. The suppressed demand draft and removal guidance focus on additionality and permanence, while the new tools aim to ensure transparency and methodological consistency.
Importantly, the MEP continues to prioritize flexibility, acknowledging that high standards must be practically implementable across diverse project types and geographies.
The outcomes of these drafts are expected to guide the first PACM methodologies and help shape initial crediting activities. Feedback in the months ahead will play a key role in refining their application.
The 62nd session of the UNFCCC Subsidiary Bodies (SB 62) will convene from 16 to 26 June 2025 at the World Conference Center Bonn in Germany. The outcomes of SB 62 are expected to shape the agenda and inform decisions at COP30 later in the year.
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