Events

Transparency under the Paris Agreement entails much more than “just” reporting obligations. It underpins trust, accountability, and environmental integrity across all aspects of climate action—including international cooperation under Article 6 of the Paris Agreement enables international cooperation to tackle climate change and to unlock financial support for developing countries. As countries increasingly explore cooperative approaches to achieve their Nationally Determined Contributions (NDCs), understanding the link between carbon market approaches (Article 6) and the Enhanced Transparency Framework (ETF) (Article 13) is becoming ever more important. For Small Island Developing States (SIDS), this connection is particularly relevant, as strong transparency systems can both facilitate participation in carbon markets and strengthen the implementation of the Paris Agreement more broadly. A recent webinar hosted by the NDC Partnership Readiness Project (NRP) of the Gesellschaft für Internationale Zusammenarbeit (GIZ) in cooperation with PATPA for decision makers and practitioners in SIDS highlighted these linkages and explored the foundations for the strategic decision for engaging in Article 6 mechanisms. 

Transparency as a prerequisite for Article 6 

The connection between Article 6 and transparency is rooted in NDC accounting. Countries participating in cooperative approaches must accurately track mitigation outcomes and apply corresponding adjustments to avoid double counting. This requires robust monitoring, reporting, and verification (MRV) systems and clear institutional arrangements. In addition, information on Article 6 implementation is reported through Biennial Transparency Reports (BTRs), making transparency not only a safeguard for environmental integrity but also an essential enabler of Article 6 participation. Developing integrated systems for transparency and Article 6 can therefore improve efficiency and strengthen national climate governance. 

Opportunities and challenges for SIDS 

Article 6 can help SIDS mobilize climate finance, attract investment, and advance sustainable development priorities. At the same time, many SIDS face structural constraints, including limited mitigation potential, small institutional capacities, and relatively low private sector engagement in carbon markets. These challenges highlight the importance of building strong transparency systems that provide reliable data, support informed decision-making, and increase confidence among potential partners. Strengthening transparency and Article 6 readiness together allows countries to build the institutional foundations needed for future participation. 

Practical pathways for implementation 

The webinar discussions demonstrated that these challenges can be addressed through approaches tailored to the circumstances of SIDS. Governments can play a proactive role in identifying mitigation opportunities and creating an enabling environment where private sector engagement is limited. Blended finance can combine carbon market revenues with grants and other climate finance sources to improve project viability, while programmatic approaches can reduce transaction costs by bundling smaller mitigation activities. Regional cooperation and alliances also offer opportunities to pool expertise, share resources, and increase the visibility of SIDS in international carbon markets. 

Building capacity through knowledge exchange 

To support informed decision-making, a virtual Open Space on Strategic Pathways for Small Island Developing States in International Carbon Markets and Article 6: Exploring Opportunities and Trade-offs was held on 12 and 13 May 2026. The event brought together representatives from SIDS and international experts to exchange experiences, discuss practical implementation challenges, and explore strategic options for Article 6 engagement. Rather than promoting a single approach, the discussions encouraged countries to assess opportunities in line with their national priorities and capacities. 

Looking ahead 

As implementation of the Paris Agreement progresses, Article 13 and Article 6 should be seen as complementary. Robust transparency systems enable credible participation in international carbon markets, while Article 6 implementation reinforces the need for strong reporting and accounting frameworks. Continued capacity-building, technical exchange, and regional collaboration will be key to helping SIDS strengthen both areas in parallel, enabling them to access new opportunities for climate cooperation while maintaining environmental integrity and advancing their long-term climate goals. 

For more insights on the topic, access the webinar recording here: Art 6 SIDS Webinar