Call for proposals for Development of programmatic Mitigation Activity Design Documents under Art. 6 PA

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Call for proposals - Development of programmatic Mitigation Activity Design Documents under Art. 6 PA

About the Organization:

The Foundation Future of the Carbon Market (“The Foundation”) , set up by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) and KfW Bankengruppe (KfW) in 2011, has an endowment capital of EUR 10 million. Their main objectives include the reduction of greenhouse gas emissions in developing counties through the targeted support of climate protection projects, in particular through the promotion and dissemination of programmatic carbon market approaches during an envisaged time frame of approximately 10 years. 

About the Call

In order to promote programmatic carbon market activities under Art. 6.2 of the Paris Agreement (PA), to gather practical experience and to draw conclusions for relevant design features of Art. 6.4 PA, the Foundation has decided to launch a call for proposals to fund the development of design documents for programmatic mitigation activities.

The aim of this initiative is to prepare market-based climate protection projects with high implementation prospects, spur international efforts in particular with regards to programmatic approaches, and inform the international community on how carbon markets can contribute to raise ambition of national contributions to climate targets under the Paris Agreement.

Objective of the call

The objective of the call is

• to identify suitable programmatic mitigation activities for further development through a dedicated template, the Art. 6 Concept Note (see Enclosure 1), and
• to provide funding for up to 5 selected proposals in different Implementing Countries to develop detailed programme design documents (Art. 6. programmatic Mitigation Activity Design Documents – “Art. 6. p-MADD”) under Art. 6.2. PA including a business plan for the design and implementation as well as to facilitate effective communication with the respective Implementing Country institutions on all Art. 6-related issues concerning the proposed activity

Eligibility criteria

This section provides criteria concerning the eligibility of proponents, programmatic mitigation activities and regarding the involvement of the Implementing Country in the context of the submission of Art. 6 Concept Notes.

Eligible Proponents

• Private and public entities with proven expertise and comprehensive know-how in topics related to climate change mitigation, carbon markets, the Sustainable Development Goals and related policy aspects can act as proponent under the call. Organisations with a solid track record in carbon asset development and management, including the preparation and implementation of climate mitigation activities in cooperation with competent partners in Implementing Countries eligible under this call and managing carbon certification processes are strongly preferred.

Eligible Programmatic Mitigation Activities

Programmatic mitigation activities (p-MAs) need to meet the following criteria:

• Scope: There are no restrictions in terms of type or sector of p-MAs, except that activities related to fossil fuel-based or nuclear power generation are not eligible. Activities related to Nature-based solutions for climate protection, including programmatic activities related to the restoration, conservation or management of ecosystems in the context of forests, agriculture or wetlands, fall within the scope of this call.
• Implementing Country: p-MAs can be implemented by any country that is a Non-Annex I party to the UNFCCC and a party to the Paris Agreement. In addition, Implementing Countries need to be eligible for Official Development Assistance (ODA). For the sake of simplicity, the Art. 6 Concept Note shall be limited to one Implementing Country, only.
• Programmatic approach: p-MAs need to clearly follow a programmatic approach, building on concepts known from programmatic carbon methodologies of existing carbon standards (CDM, Gold Standard, Verra, etc.) and similar initiatives.
• Volume of mitigation outcome and generation period: p-MAs generate a substantial volume of emission reductions or removals over a period from/after 2021 up to 2030. A minimum annual volume is not prescribed, but the demonstration of high quantities in mitigation outcome is considered a plus.
• Co-benefits: p-MAs generate substantial co-benefits that can be classified under the UN SDG framework and underline the sustainability of the p-MA. In case the Implementing Country SDG strategy covers the p-MA boundaries, consistency must be given.
• Swift implementation, sustainability and potential for scaling-up: p-MAs should show high prospects for swift physical implementation with clear plans regarding the required preparation on the ground in terms of relevant studies, permits, agreements, etc.
• Policy alignment, NDC embedding and evidence on increased ambition: p-MAs are overall aligned with relevant Implementing Country policies. Evidence can be brought forward that p-MAs contribute to raising ambition as compared to the Implementing Country’s NDC and are additional to targets set in the unconditional part of the NDC.
• Methodological aspects: p-MAs shall be based on thorough methodologies with regards to the underlying baseline, the reference scenario (taking into account the conditional part of the NDC and all relevant policies and technological development), the quantification of emission reductions (or removals) and the demonstration of additionality.
• Existing projects: For the sake of clarity, p-MAs that are already registered under existing carbon certification schemes (CDM, Gold Standard, Verra, etc.) orthat are an extension to such activities will only be considered if registration occurred from 4 November 2016 onwards. All other requirements under this call need to be taken into account for such activities, as well.

Funding is primarily awarded to programmes that -

• are in an advanced state of planning and preparation,
• are carried out in Least Developed Countries or provide strong contributions to the sustainable development of underprivileged parts of the population and populations which are particularly vulnerable to climate change,
• are integrated into the host country’s national climate policy,
• provide valuable inputs for the development and conceptual design of new carbon market mechanisms
• have a competent programme managing entity,
• show evidence of being economically viable,
• are replicable, and
• have the potential to improve the living and working conditions of women in the host country and generally contribute to sustainable development.

Deadline: 31 December 2020

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