Private Sector Advances in Carbon Trading: Global Developments under Article 6
In the emerging landscape of carbon trading under Article 6 of the Paris Agreement, private sector firms have initiated projects, yet many remain discreet due to ongoing UN negotiations and incomplete legal frameworks in several countries.
At COP28 in Dubai, developing nations are anticipated to announce sectors eligible for carbon credit exports. Advanced discussions involve Ghana, Senegal, Chile, Ivory Coast, Vietnam, Peru, Rwanda, and Timor Leste.
ALLCOT, a project developer, and Carbon Growth Partners announced the first private sector investment for carbon credits under Article 6 in a waste management project in Senegal, signaling progress in this space.
Africa leads in Article 6 readiness, with Latin America also making strides. Singapore and Switzerland are notable demand centers, with Singapore finalizing agreements with Ghana and Vietnam. While uncertainty remains about project prices, increased participation of buyer countries is crucial for a robust Article 6 market.