The Climate Vulnerable Forum and V20 Finance Ministers (CVF-V20), together with the Voluntary Carbon Markets Integrity initiative (VCMI), have released a handbook to help climate-vulnerable nations secure financing through international carbon markets.
Published earlier this week in Bangkok ahead of COP31, the Article 6 Senior Officials’ Handbook provides guidance for government officials considering participation in carbon markets established under Article 6 of the Paris Agreement.
The 77 countries represented by the CVF-V20 face an estimated annual financing gap of $490 billion for development needs. Carbon markets could provide an additional $20 billion a year by 2030, according to the organizations behind the publication.
Historically, many climate-vulnerable countries have had limited participation in international carbon markets. The announcement cites data showing that 45 least-developed countries accounted for just 1.5% of projects registered under the Kyoto Protocol’s Clean Development Mechanism, predecessor of the Paris Agreement Crediting Mechanism (PACM) under Article 6.4.
The handbook contains eight modules addressing decisions on project authorization, revenue generation, benefit-sharing, environmental and social integrity, private-sector participation and legislative oversight. It also provides examples of approaches used by host and buyer countries, alongside guidance on common implementation challenges.
The publication is intended to help senior officials assess whether and how their countries should participate in carbon markets. Governments can use carbon finance to support national climate commitments and fund Climate Prosperity Plans, which seek to connect investment and technology access with national development priorities.
Case studies highlight initiatives already under way. 1 billion in total investment.
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