Germany has opened a tender for up to 1.1 million carbon credits under Article 6.4, the Paris Agreement’s PACM mechanism, as Berlin expands its use of international carbon markets to address emissions from government operations.

The procurement was launched by Germany’s Federal Environment Agency and covers emissions associated with official air and vehicle travel, as well as unavoidable emissions connected with federal government events. Several federal institutions are included in the program, including the Environment Ministry, Development Ministry, Bundestag and Bundesbank.

The scale of the purchase makes the tender one of the more significant government procurement exercises tied to the emerging Paris Agreement carbon market. Germany’s move also provides an early indication of how public-sector demand could develop as the Article 6.4 mechanism becomes operational.

The procurement, published by Germany’s Federal Environment Agency on Oct. 7, covers emissions associated with official air and vehicle travel, as well as unavoidable emissions from participants traveling to federal government events. The purchase will also support climate-neutrality initiatives involving several federal institutions, including the Environment Ministry, Development Ministry, Bundestag and Bundesbank.

The agency said it intends to acquire as many as 1,101,743 credits across these activities. Germany has used carbon credits to address the climate impact of federal travel for years, but since the end of the Kyoto Protocol’s second commitment period it has moved away from Kyoto-era credits toward instruments compatible with the Paris Agreement.

4 establishes the Paris Agreement Crediting Mechanism, a UN-supervised system intended to generate internationally recognized carbon credits from qualifying emissions-reduction projects.

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