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Key Insights:

Alexandra Soezer (Director, CACE)

Alexandra highlighted the key market barriers, including generating sufficient credit volumes due to limited mitigation options and investment barriers in low-income countries, requiring financial de-risking mechanisms and tailored instruments. Alexandra pointed out that market liquidity is hindered by fragmentation, with varying standards and buyer preferences complicating project design and implementation. Ensuring credit fungibility across different standards is crucial for market cohesion and efficiency. Additionally, the misalignment between low-cost credit demand and high-impact projects undermines market integrity. To address these issues, coordinated efforts from governments, private sectors, and multilateral organizations are necessary to align expectations, foster capacity building, and prioritize high-integrity projects.

Daniel Tutu Benefoh (Director, Ghana EPA)

Daniel shared Ghana’s progress in establishing a robust legal framework for carbon markets through amendments to its Environmental Protection Act. He outlined key developments, including the creation of a National Carbon Market Committee, a mitigation fund, and an operational national carbon registry. Daniel stressed the importance of clarity in NDC objectives, professional capacity building, private sector engagement, and innovation to ensure the success of Article 6 implementation in Ghana and beyond.

Andrea Bonzanni (International Policy Director, IETA)

Andrea highlighted the positive outcomes of COP29, which finalized the Article 6 Rulebook, providing much-needed stability for carbon markets. He addressed the persistent “chicken-and-egg” dilemma in the market, where buyers and sellers are constrained by regulatory readiness and capacity. Andrea emphasized the need for political will to unlock market potential, particularly from major economies. He also underscored the importance of addressing market fragmentation and integrating standards to boost market confidence and efficiency.

Ely Sandler (Fellow, Harvard Kennedy School)

Ely explored the role of carbon tax assets under Article 6 as a mechanism to mobilize private sector investment in large-scale infrastructure projects. He presented a compelling case for integrating Article 6 credits with carbon border adjustment mechanisms like the EU’s CBAM, arguing that this could unlock significant demand for Article 6 credits and address financing gaps in developing countries. Read more on the impacts of border carbon adjustments on global climate finance in a recent paper authored by Ely and published by the Harvard Kennedy School Belfer Center for Science and International Affairs here.

Lily Ginsberg-Keig (Policy Manager, BeZero Carbon)

Lily discussed the growing convergence of voluntary carbon markets, compliance markets, and Article 6 frameworks. She highlighted the importance of integrating risk management tools, such as ratings and insurance, and aligning voluntary market standards with Article 6 requirements to ensure integrity and scalability. Lily also drew lessons from the Clean Development Mechanism (CDM), emphasizing the need for streamlined frameworks, robust government participation, and effective communication to build confidence in carbon markets.

Key Takeaways

The 90-minute webinar brought together leading voices in the field of carbon markets and climate action to explore the practicalities of Article 6 implementation and its potential to scale global climate efforts. The distinguished panel of speakers included Dr. Alexandra Soezer, Director of the Climate Action Center of Excellence (CACE); Mr. Andrea Bonzanni, International Policy Director at IETA; Ely Sandler, Fellow at Harvard Kennedy School; Dr. Daniel Tutu Benefoh, Director of Ghana EPA; and Ms. Lily Ginsberg-Keig, Policy Manager at BeZero Carbon.

Drawing from their diverse expertise and real-world experiences, the speakers offered actionable insights on overcoming barriers and maximizing opportunities within the global carbon market. Their presentations highlighted the following key takeaways:

• 1- Unlocking Financing: Tailored financial instruments and blended finance models are essential to overcoming investment barriers, particularly in developing countries, and enabling the development of high-impact, scalable projects.
• 2- Market Fungibility: Harmonizing standards and ensuring the fungibility of carbon credits are critical for fostering a cohesive and efficient global carbon market that encourages participation and trust among stakeholders.
• 3- Capacity Building: Empowering local stakeholders and governments through targeted training and technical support is vital to ensuring effective participation and compliance with Article 6 mechanisms.
• 4- Integrated Approaches: The establishment of clear legal structures, strategic financial planning, and robust implementation frameworks is key to unlocking the full potential of Article 6 mechanisms and driving meaningful climate solutions at scale.

This session offered a compelling roadmap for operationalizing Article 6, underscoring the need for collaboration, innovation, and unified standards to achieve ambitious global climate goals.

Conclusion

The webinar highlighted the urgent need for collaborative efforts between nations, private sectors, and multilateral organizations to operationalize Article 6 effectively. Through actionable insights and real-world examples, the panelists demonstrated how Article 6 mechanisms can drive innovation, strengthen market integrity, and scale global climate action.

As the world continues to face the challenges of climate change, events like this reaffirm the importance of partnerships and dialogue in achieving the Paris Agreement’s objectives. CACE and HFW remain committed to advancing these critical conversations and fostering innovative solutions for a sustainable future.