Carbon Markets Advisory

Article 6 of the Paris Agreement enables international cooperation to tackle climate change and to unlock financial support for developing countries, through the carbon market system. This system allows countries, companies, or other entities to buy and sell carbon credits representing carbon dioxide (CO₂) emissions reductions. It allows companies to compensate for some of their greenhouse gas emissions by funding projects that reduce emissions elsewhere.

There are three components to Article 6:

  • Article 6.2: Provides accounting and reporting guidance for countries under the Paris Agreement to use internationally transferred mitigation outcomes (carbon credits)1 towards their nationally determined contributions (NDCs)2.
  • Article 6.4: Establishes a UNFCCC3 mechanism which can be used to trade high-quality carbon credits.
  • Article 6.8: Provides opportunities for non-market-based cooperation4 for enhancing climate action.

There are two primary types of carbon markets:

  1. Compliance carbon markets (CCMs): A CCM is a marketplace where regulated entities and countries obtain or trade carbon credits to meet their regulatory obligations.
  2. Voluntary carbon markets (VCMs): A VCM is a decentralised market where private actors voluntarily buy and sell carbon credits that represent removals or reductions of greenhouse gases (GHGs)in the atmosphere.

Projects that generate carbon credits fall into two categories:

  1. Removal projects such as tree planting, that actively absorb CO₂.
  2. Avoidance projects such as renewable energy, clean cooking, and waste management projects, which prevent emissions.

Sadly, there are several issues facing the voluntary carbon markets industry today, including general lack of awareness in this space, integrity concerns, uneven benefit-sharing with local communities, limited transparency in payments and commitments, and weak social and environmental safeguards.

At Jaya Karbon Kounsel, we believe that when designed and implemented well, carbon projects can channel climate finance to developing countries and drive economic development.

Our main goal is to promote transparency and integrity by ensuring that all stakeholders are meaningfully engaged, fairly treated, and fully informed throughout the project lifecycle.

We work with:

  1. Communities to ensure they understand the science of climate change and how the carbon market system works, and to support meaningful participation and fair benefit-sharing.
  2. Project developers to design and implement high-integrity carbon projects that support the country’s Sustainable Development Goals (SDGs) and meet the ICVCM5 Core Carbon Principles (CCPs)6, while embedding strong social safeguards, community engagement, and transparent governance.
  3. County governments to align carbon projects with local development priorities, policy frameworks, and regulatory requirements while strengthening oversight and coordination.
  4. Investors to assess social and reputational risks, ensure responsible capital deployment, and build confidence in the long-term credibility of carbon projects.

We also act as project developers, collaborating with communities to co-develop carbon projects that reflect local priorities, knowledge, and development needs. This collaborative approach ensures community ownership, strengthens social safeguards, supports equitable benefit-sharing, and results in projects that are both high-integrity and locally grounded.

With extensive knowledge of the carbon market standards (i.e Verra, Puro, and Gold)7 and their respective methodologies, and with communities at the center of the work we do, we aim to play an integral role in promoting integrity, transparency, and accountability in carbon projects.

If you are looking to engage in high-integrity carbon projects, get in touch to explore how we can support transparent, inclusive, and credible carbon initiatives that deliver real climate and development impact.

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Footnotes

  1. Carbon credits represent a measurable and verifiable reduction, avoidance or removal of one tonne of carbon dioxide equivalent (CO2e) from the atmosphere.↩︎

  2. Nationally Determined Contributions, or NDCs, are individual climate action plans by countries under the Paris Agreement, detailing their goals to cut greenhouse gas emissions and adapt to climate impacts. These countries are required to submit progressively ambitious updates every five years to align with global warming targets.↩︎

  3. United Nations Framework Convention on Climate Change↩︎

  4. Non-market based approaches include efforts in mitigation, adaptation, finance, technology development and transfer, capacity-building, and contribution to sustainable development and poverty eradication.↩︎

  5. The Integrity Council for the Voluntary Carbon Market (ICVCM) is an an independent non-profit governance body working to establish and maintain worldwide standards for integrity in the voluntary carbon market. They ensure that every carbon credit represents actual verified emission reductions or removals from the atmosphere while promoting sustainable development and protecting nature.↩︎

  6. The Core Carbon Principles (CCPs) are ten fundamental, science-based principles for identifying high-quality carbon credits that create real, verifiable climate impact.↩︎

  7. The Voluntary Carbon Market standards act as the market regulators, providing the certification and issuance of carbon credits, while also safeguarding the quality and credibility of the credits. These standards include methodologies that define a standard set of parameters, criteria, and operations required for the calculation of emission reductions or removals from a carbon project during its lifetime.↩︎