Something important happened at COP. The Clean Development Mechanism is now officially closed, and countries adopted the first steps to build the new UN-regulated carbon market under Article 6. It is not operational yet, but for the first time since 2021 there is a funded path toward a functioning system by 2026.

What was agreed

• The CDM closed and initial resources were assigned to start the Article 6.4 mechanism.

• Countries adopted the core texts for Articles 6.2 and 6.4.

• Nature-based methodologies were selected for development through 2026–2027.

• Jurisdictional REDD+ will not be a priority under 6.4, but it can move through 6.2.

• A proposal that would have blocked most international transfers of ITMOs was avoided.

Before going further: what is Article 6?

Article 6 is the part of the Paris Agreement that lets countries work together on emission reductions and removals. It sets the rules for cooperation, transferring results, and avoiding double counting.

Simple example

• Three countries decide to work together on climate action.

• They share results or transfer verified reductions.

• Article 6 provides the framework so the accounting stays transparent.

Article 6.2, in simple words

This path lets countries collaborate directly through bilateral or multilateral deals. They generate and transfer units called ITMOs.

Example

• Japan funds an energy-efficiency project in Vietnam.

• Vietnam verifies the reductions and transfers them to Japan as ITMOs.

• Both countries adjust their national accounts to avoid double counting.

• This is a government-to-government agreement with flexibility and faster timelines.

Article 6.4, in simple words

This will be the new UN-regulated carbon market. It replaces the old CDM.

Example

• A biochar project in Kenya applies to the Article 6.4 Supervisory Body.

• It follows one UN-approved methodology.

• The project is validated and verified under one central UN system.

• The UN issues 6.4ERs.

• These credits can be transferred to countries or companies with strict MRV and adjustments to avoid double counting.

ITMOs, explained – Internationally Transferred Mitigation Outcomes.

These are verified emission reductions or removals that one country transfers to another.

They must be real, adjusted, and counted only once.

Example

• Country A reduces 1,000 tonnes.

• Country A transfers those 1,000 tonnes to Country B.

• Country B uses them toward its climate target.

• Both countries record the transfer and adjust their accounts.

What this means in practice

A functional regulated market is not ready yet, but the foundation is now in place. Progress is slow, but the direction is clearer. Until Article 6 opens, the Voluntary Carbon Market remains the main channel to finance climate action.

Why this matters for biochar

• Durable removals are essential for credible net zero plans.

• Article 6.4 will require strong MRV and transparent feedstock integrity, which aligns with high-quality biochar projects.

• Buyers will continue relying on the voluntary market until Article 6 becomes operational.

• A future UN-regulated market could improve price stability and long-term planning for developers.

• Clearer rules may help distinguish durable removals, like biochar, from weaker approaches.

Bottom line

We do not have the regulated market we need yet, but the structure is finally emerging. For the biochar community, this is the moment to stay rigorous, strengthen project quality, and prepare for the next phase of international cooperation.

• This discussion was modified 11 months, 1 week ago by  LUISA E.