Climate-vulnerable nations launch handbook to help governments attract Article 6 carbon finance
By Article 6 Network
A group of 77 climate-vulnerable countries has launched a handbook to help governments attract financing under Article 6 of the Paris Agreement. It is a coordinated effort by the countries most exposed to climate impacts to build the capacity they need to host high-integrity carbon projects and compete for buyer demand.
A coalition of 77 climate-vulnerable countries has published a handbook designed to help governments attract finance through Article 6 carbon markets.
The launch builds on existing capacity-building work by climate-vulnerable countries. The CVF-V20, working with the Voluntary Carbon Markets Integrity Initiative (VCMI), runs a Carbon Finance Program launched in June 2024. It helps member countries use high-integrity carbon markets to finance their Climate Prosperity Plans, which are multi-phase national investment strategies. Support runs to 2028 and covers policy advice, help with carbon credit transactions, climate finance mechanisms, and measures to aggregate demand across voluntary, compliance and Article 6 markets.
Earlier tools include VCMI’s Carbon Markets Access Toolkit, produced with Climate Focus, UNDP and the CVF-V20. It gives step-by-step guidance on whether and when to enter carbon markets, how to build an Article 6 strategy, how to handle legal and institutional questions, and how to host high-quality projects. Members are at very different stages. Ghana is among the most advanced at mobilising Article 6 finance, while Pakistan signed its first carbon market deal after launching national guidelines for carbon trading.
Signals to watch
- Readiness gap is the binding constraint: Most climate-vulnerable countries lack authorisation procedures, registries and corresponding-adjustment policies. A shared handbook could speed up their entry into Article 6. Watch for a wave of new national frameworks and first LoAs from countries that have so far been inactive.
- Collective bargaining power: A coordinated bloc of 77 countries could push for common positions on pricing floors, share of proceeds, how much mitigation to retain for their own NDCs, and safeguards. This could reshape terms in bilateral negotiations with buyers such as Switzerland, Singapore, Japan, Sweden and Norway.
- New supply pipeline for buyers: Better institutional readiness in vulnerable countries widens the geography of ITMO supply, especially for adaptation co-benefit, nature-based and clean energy projects. Buyers looking for high sustainable-development impact will find more credible hosts.
- Investors should track implementation: A handbook only matters if governments use it. The key signs to watch are laws actually adopted, registries operating, LoAs issued and first transfers recorded. Investors should rank countries by implementation, not by policy announcements.
- COP31 positioning: Expect climate-vulnerable countries to use this effort in COP31 negotiations, arguing for Article 6 to deliver fair finance flows, capacity support and stronger safeguards, including a larger role for share of proceeds for adaptation.
