The Challenge Developer Discussion board (PD Discussion board)1 has issued a powerful warning to the UN physique overseeing carbon market guidelines beneath the Paris Settlement, saying a proposed normal for guaranteeing the permanence of emissions reductions may cripple the rising marketplace for nature-based local weather options.
In a proper submission to the Article 6.4 Supervisory Physique (SB), the trade group mentioned the draft permanence normal is “overly conservative” and dangers driving challenge builders away from the mechanism totally. The PD Discussion board argued that the proposed guidelines — notably the definition of “negligible” reversal danger and the requirement for probably perpetual monitoring after credit are issued — would impose unmanageable prices and authorized uncertainty.
“The proposed normal prioritises overly-conservative accounting to such an excessive diploma that it threatens market viability,” the Discussion board mentioned. “What the PACM wants is accuracy in emissions accounting, not extreme conservativeness that costs nature-based initiatives out of existence.”
The group additionally criticised the session course of, requesting “that the SB and MEP improve timeframes for public enter throughout all consultations in a way proportional to the novelty and complexity of the problems at stake.
“Rushed consultations on advanced technical issues stop stakeholders from offering the knowledgeable, constructive suggestions obligatory for efficient implementation.”
Greater than 100 stakeholders reportedly submitted feedback, with a majority supporting provisions that will allow nature-based initiatives. Nonetheless, the Discussion board mentioned this suggestions was “not totally mirrored” within the Supervisory Physique’s newest response.
The PD Discussion board has known as for a pause in adoption of the draft normal till its potential impacts are correctly assessed, and for a brand new session course of permitting extra time for professional and public enter. It additionally urged the creation of specialized working teams to carry deeper technical experience to rule improvement.
Nature-based options — akin to reforestation, ecosystem restoration and soil carbon administration — are seen as a key element of worldwide efforts to restrict warming to 1.5°C. The Discussion board warned that excluding such initiatives by way of extreme accounting conservativeness would undermine each the credibility of the Article 6.4 mechanism and worldwide local weather targets.
The Article 6.4 Supervisory Physique is anticipated to finalise key market guidelines within the coming months, forward of COP30 negotiations in Belém, Brazil, later this yr.
Notes
[1] A consultant physique for firms and organizations growing low-carbon initiatives
