The project aims to support local and national capacities in the conceptualization and implementation of projects conducted under the mechanisms provided by Article 6 of the Paris Agreement. This particular provision seeks to enable city governments to undertake climate-related projects through carbon markets, specifically to implement the Internationally Transferred Mitigation Outcomes (ITMO).
- Country : IDN, THA
- Project Sites : City of Yogyakarta, Special Region of Yogyakarta Province
- Support Area : Mitigation
- IKI Funding : 489.118,95 €
- Duration : 01.11.2021 - 31.10.2024
- Implementing Organisation : Perspectives Climate Group GmbH cc
Policy Priorities :
The Urban Article 6 Project is aiming to develop two (2) pilot projects in Indonesia that would be “ready to generate” carbon credit under the mechanism of Article 6.2 of Paris Agreement which has been ratified by the Indonesian Government (Law No. 16/2016) and the Presidential Regulation No. 98/2021 on Carbon Pricing (Nilai Ekonomi Karbon) in achieving the NDC targets. The project envisions that the Article 6.2 of Paris Agreement that has been translated into Presidential Regulation 98/2021 and various technical regulations issued by the Ministry of Environment and Forestry can be used to mobilize financial flow for the implementation of sub-national climate action. Therefore, the main policy priorities of this project are:
a. Preparation/implementation of activities that can support the achievement of NDC at sub-national level through the carbon pricing mechanism (Article 6.2 of Paris Agreement)
b. Policy on the implementation of Article 6.2/carbon pricing per the Presidential Regulation 98/2021 at sub-national level
Policy Targets :
a. Ready to generate ITMO carbon credit for 1 pilot project in the City of Yogyakarta (waste to energy project) and 1 pilot project in the Province of Yogyakarta (electrification of Trans Jogja buses)
b. Development of MADD (mitigation action design document) of the aforementioned two pilot projects
c. Assessment on the financial and legal barrier for the implementation of Article 6.2 at sub-national level in Indonesia
d. Concept not for financing the aforementioned two pilot projects
e. Identification of 10 potential buyers of ITMO of the aforementioned two pilot projects
b. Development of website to disseminate the lesson learned from the process in preparing ready to generate ITMO project at sub-national level
Relevant Links: https://www.international-climate-initiative.com/PROJECT1635-1
