From Theory to Implementation

Despite clearer rules under the Article 6 Rulebook of the Paris Agreement, navigating the fragmented international carbon markets remains complex. Capacity building for Article 6 and the voluntary carbon market (VCM) therefore plays a key role for countries aiming to engage in market-based cooperation, which has led to a growing number of capacity building programmes globally.

Nicolas Kreibich and Max Schulze-Steinen from the Research Unit Global Climate Governance at the Wuppertal Institute, together with the independent Senior Consultant Florian Eickhold, analyse in the Policy Paper "Getting ready for Article 6 and the VCM?" the global landscape of capacity building programmes in the field of carbon markets. Among others, the authors focused on central actors involved, key action areas of the programmes and their methodological approaches. Moreover, expert interviews and a roundtable discussion were conducted.

Their analysis shows: Although a variety of programmes with different approaches exist, there is a lack of transparency and effective flow of information. As a result, some activities overlap and work that has already been done is difficult to access and use for actors outside of the respective activity. In addition, the analysis indicates that capacities are currently being built primarily in areas that are more relevant at the initial stages of the engagement in carbon markets.

In order to make sustainable use of the skills acquired, increased international coordination would be necessary. This would help to organise the landscape of programmes and make their work and lessons learnt usable for a broader range of actors. It is also important to build on the experiences of these programmes in order to implement high-integrity climate mitigation projects. In this context, it is crucial that the programmes are tailored to the actual needs of the specific host countries.

The Policy Paper is available free of charge via the link below. The analysis was conducted on behalf of the Federal Ministry for Economic Affairs and Energy (BMWE).