Policy Overview
Article 6.4 of the Paris Agreement establishes a United Nations-led global carbon market mechanism (A6.4ERs), enabling parties to trade high-integrity emission reductions and removals. In October 2024, the Article 6.4 Supervisory Body (SBM) finalized and adopted groundbreaking standards for Carbon Removals, which became effective during COP29. This formalizes the path for CCS and Direct Air Capture (DAC) projects to generate internationally recognized carbon credits eligible for use in national NDCs.
Key to this mechanism is the introduction of a rigorous Reversal Standard, requiring projects to mitigate risks such as storage leakage or physical loss through a centralized Global Buffer Pool. For CCS, the rules mandate a 15-year crediting period (renewable twice) and enforce ‘Corresponding Adjustments’ to eliminate double-counting. By providing a unified, sovereign-level market framework, Article 6.4 unlocks large-scale international financing for carbon management infrastructure, particularly in emerging economies, by ensuring the environmental and legal integrity of every tonne sequestered.