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The Article 6.4 Supervisory Body approved “A6.4-AMM-001: Flaring or use of landfill gas” at its 19th meeting on October 29-30. The methodology, which was based on elements of version 19 of the Clean Development Mechanism’s (CDM) “ACM0001: Flaring or use of landfill gas” covers activities that capture landfill gas from a solid waste disposal site and flare it, use it to produce energy or supply to consumers through a natural gas distribution network. It also defines how methane emissions from these sites can be managed and qualify for Article 6.4 carbon credits.
The Article 6.4 Supervisory Body is tasked with developing and supervising the requirements and processes needed to operationalize PACM. This includes developing and approving methodologies, registering activities, accrediting third-party verification bodies, and managing the Article 6.4 registry.
The methodology entered into force upon its adoption on October 30 and remains valid for five years, unless it is revised or withdrawn.
The methodology is the first to detail how alignment of the baseline with the Paris Agreement can work in practice and marks the UN carbon market “fully operational” . This is through the application of a downward adjustment which gradually reduces crediting levels over time.
For instance, a project that burns off methane will have a crediting level fall quicker, while projects that use methane to produce energy will keep higher crediting levels for longer. This approach “rewards better solutions, encourages innovation and avoids locking in less sustainable practices,” the statement said.
“This is a breakthrough for the Paris Agreement Crediting Mechanism – the first practical application of Paris-aligned crediting as expressed in our methodological standard adopted last year. As the world looks for credible ways to cut emissions and deliver on climate promises I hope this is only the first of many innovative methodologies.” Martin Hession, Chair of the Article 6.4 Supervisory Body, said in the statement.
Alongside the methodology approval, PACM has also adopted an investment analysis tool that requires the project developer to demonstrate additionality by showing their activities would not be viable without revenue from carbon credits.
Methane landfill activities can now be submitted for registration using the methodology. Going forward, UNFCC expects other methodologies will be approved in due course, such as for renewable energy.
The Supervisory Body is set to publish its annual report to the Parties to the Paris Agreement (CMA) during Conference of the Parties (COP) 30 later this month. The Supervisory Body is fully accountable to the CMA which could clarify or expand its mandate and “guide future work on new methodologies and market rules,” the statement said.
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