The Conference of the Parties serving as the meeting of the Parties to the Paris Agreement,
Recalling the Paris Agreement,
Also recalling the tenth preambular paragraph of the Paris Agreement, in which Parties take into account the imperatives of a just transition of the workforce and the creation of decent work and quality jobs in accordance with nationally defined development priorities,
Further recalling the eleventh preambular paragraph of the Paris Agreement, acknowledging that climate change is a common concern of humankind, Parties should, when taking action to address climate change, respect, promote and consider their respective obligations on human rights, the right to health, the rights of indigenous peoples, local communities, migrants, children, persons with disabilities and people in vulnerable situations and the right to development, as well as gender equality, empowerment of women and intergenerational equity,
Recalling the mechanism established by Article 6, paragraph 4, of the Paris Agreement and the aims referred to therein,
Also recalling decisions 1/CP.21, 8/CMA.1, 13/CMA.1 and 9/CMA.2,
Cognizant of decision 2/CMP.16,
1. Adopts the rules, modalities and procedures for the mechanism established by Article1 6, paragraph 4, as contained in the annex;
2. Designates the body that will supervise the mechanism with its membership and rules of procedure as set out in the annex and names it the Supervisory Body;
3. Invites the nomination of members and alternate members for the Supervisory Body pursuant to paragraph 9 of the annex;
4. Decides that at least two meetings of the Supervisory Body shall be held in 2022;
5. Requests the Supervisory Body to:
(a) Develop provisions for the development and approval of methodologies, validation, registration, monitoring, verification and certification, issuance, renewal, first transfer from the mechanism registry, voluntary cancellation and other processes pursuant to chapters V.B–L and VIII of the annex (Delivering overall mitigation in global emissions);
(b) In the context of developing and approving new methodologies for the mechanism:
(i) Review the baseline and monitoring methodologies in use for the clean development mechanism under Article 12 of the Kyoto Protocol with a view to applying them with revisions, as appropriate, pursuant to chapter V.B of the annex (Methodologies) for the activities under the mechanism (hereinafter referred to as Article 6, paragraph 4, activities);
(ii) Consider the baseline and monitoring methodologies used in other marketbased mechanisms as a complementary input to the development of baselines and monitoring methodologies pursuant to chapter V.B of the annex (Methodologies);
(c) Review the sustainable development tool in use for the clean development mechanism and other tools and safeguard systems in use in existing market-based 1 “Article” refers to an Article of the Paris Agreement, unless otherwise specified. FCCC/PA/CMA/2021/10/Add.1 26 mechanisms to promote sustainable development with a view to developing similar tools for the mechanism by the end of 2023;
(d) Review the accreditation standards and procedures of the clean development mechanism with a view to applying them with revisions, as appropriate, for the mechanism by the end of 2023;
(e) Expeditiously accredit operational entities as designated operational entities;
(f) Ensure the implementation of the requirements referred to in paragraph 29 of the annex in relation to the least developed countries and small island developing States;
(g) Consider ways to encourage participation by small and micro businesses in the mechanism, in particular in the least developed countries and small island developing States;
(h) Consider opportunities to engage with the Local Communities and Indigenous Peoples Platform and its Facilitative Working Group;
(i) Consider the gender action plan and the incorporation of relevant actions into the work of the Supervisory Body;
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Annex
Rules, modalities and procedures for the mechanism established by Article 6, paragraph 4, of the Paris Agreement
III. Supervisory Body
3. The Supervisory Body shall supervise the mechanism under the authority and guidance of the CMA and be fully accountable to the CMA.
A. Rules of procedure
4. The Supervisory Body shall comprise 12 members from Parties to the Paris Agreement, ensuring broad and equitable geographical representation and striving to ensure gender-balanced representation, as follows:
(a) Two members from each of the five United Nations regional groups;
(b) One member from the least developed countries;
(c) One member from small island developing States.
5. The CMA shall elect members and an alternate for each member of the Supervisory Body on the basis of nominations by the respective groups and constituencies.
6. Members and alternate members shall serve in their individual expert capacity.
7. Members and alternate members shall possess relevant scientific, technical, socioeconomic or legal expertise.
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B. Governance and functions
24. The Supervisory Body shall, in accordance with relevant decisions of the CMA:
(a) Establish the requirements and processes necessary to operate the mechanism, relating to, inter alia:
(i) The accreditation of operational entities as designated operational entities;
(ii) The development and/or approval of methodologies (hereinafter referred to as mechanism methodologies) and standardized baselines for Article 6, paragraph 4, activities;
(iii) The registration of activities as Article 6, paragraph 4, activities, the renewal of crediting periods of registered Article 6, paragraph 4, activities and the issuance of A6.4ERs;
(iv) Ensuring that activitiesfollow reasonable maximum time intervals between the steps in the activity cycle;
(v) The registry for the mechanism;
(vi) The share of proceeds levied to assist developing country Parties that are particularly vulnerable to the adverse effects of climate change to meet the costs of adaptation as set out in chapter VII below (Levy of share of proceeds for adaptation and administrative expenses);
(vii) The delivery of overall mitigation in global emissions as set out in chapter VIII below (Delivering overall mitigation in global emissions);
(viii) The approval and supervision of host Party national arrangements for accreditation of operational entities; development of mechanism methodologies, including applying baselines and other methodological requirements as defined in chapter V.B below (Methodologies); and application of the crediting periods and renewal of crediting periods consistent with or more stringent than as set out in chapter V.A, C and I below;
(ix) The eleventh preambular paragraph of the Paris Agreement, acknowledging that climate change is a common concern of humankind, Parties should, when taking action to address climate change, respect, promote and consider their respective obligations on human rights, the right to health, the rights of indigenous peoples, local communities, migrants, children, persons with disabilities and people in vulnerable situations and the right to development, as well as gender equality, empowerment of women and intergenerational equity;
(x) The application of robust, social and environmental safeguards;
(xi) The development of tools and approaches for assessing and reporting information about how each activity is fostering sustainable development, while acknowledging that the consideration of sustainable development is a national prerogative;
(xii) Ensuring that the mechanism facilitates achievement of the long-term goals of the Paris Agreement;
(b) Accredit operational entities as designated operational entities;
(c) Support the implementation of the mechanism by, inter alia:
(i) Developing and maintaining a public website for information related to proposed and registered Article 6, paragraph 4, activities, subject to confidentiality;
(ii) Taking appropriate measures to promote the regional availability of designated operational entities in all regions;
(iii) Promoting public awareness of the mechanism; (iv) Facilitating dialogue with host Parties and other stakeholders in the mechanism;
(v) Providing public information to the CMA on all registered Article 6, paragraph 4, activities hosted by each Party and all A6.4ERs issued for those activities;
(vi) Implementing capacity-building activities;
(d) Report annually to the CMA
