Whirling through the year we never found time to reflect over what we were doing during the past months. It’s time for a recollection.

“Tactical” support in MADD development, MOPA negotiations and complex regulatory stuff

We will not report here about all the clients that we advise and what insights we get (and provide). It’s the nuts and bolts of the carbon market and understanding what carbon is about: Smart business models, robust methodologies and hedging risks implied by regulation and counterparties. However, for a glimpse into project development, check out our work on palm oil and coal phase-out at the end of this post.

Zambia: Fact-Finding and Benefit Sharing Guidelines

The regulatory front of our work took off to a flying start in Zambia. Following a fact-finding mission, UK FCDO, FSD-Africa, and the Climate Action Platform for Africa (CAP-A)—with whom we're thrilled to work with in a sound partnership—convened a workshop with Zambian government officials and carbon market participants in April 2024 in Lusaka. Key discussions arising from this mission highlighted both the challenges and opportunities within Zambia’s carbon market.

Presentation of fact finding report.

Stakeholder discussions

Crucially, the workshop underscored the urgent need for benefit sharing and distribution guidelines, which led to the second phase of our engagement: supporting the MGEE in developing these guidelines. We are excited to continue this collaboration into 2025, providing us with a front-row seat to witness Zambia regulating the carbon market with the freshly adopted law and determined to pivot into legalising the carbon market framework and benefit sharing guidelines with statutory instruments.

Continued support in 2025 to government in deliberating national benefit sharing rules

Presentation of the Benefit Sharing approach for deliberation and decision by MGEE.

Interactive discussion to clarify decision context.

Morgane breaking down the method to benefit sharing discussed.

Oman Carbon Market Framework

Continuing in the same vein, we were thrilled to partner with Ampere in supporting Oman’s development of its Article 6 carbon market framework. From drafting the framework to hosting an initial in-person workshop in the spring for governmental officials, through stakeholder consultations, reviews, and a follow-up workshop in September, it has been exciting to be at the forefront of framework development. Additionally, this engagement led us to support Oman’s broader UNFCCC involvement, by reviewing the BTR. It was great to dig into the intricacies of reporting and experience firsthand how this crucial ETF tool, which makes corresponding adjustments and authorisations stick, is being crafted for the first time by countries, applying CMA requirements.

With our beloved partner Ahmad Qadri from Ampere

Explaining the regulatory process to stakeholder

Morgane presenting the Article 6 aspects of the draft carbon market framework at an event of the environment agency.

Stocktaking of Article 6 Implementation in South Korea

Classen was requested to prepare a report for NIGT, the National Institute for Green Technology, which aimed to guide South Korea's decisions on climate change and carbon market regulations. The report explored strategies of sovereigns for acquiring ITMOs under their national laws, assessed the linking the Korean ETS with Article 6, and recommended approaches for integrating new credit forms like 6.4ERs. By comparing frontrunner approaches, it provided key success factors for South Korea's effective ITMO acquisition. Mischa was thrilled to present at NIGT's Global Forum on Stocktaking of the Article 6 Implementation in Seoul.

With Crystal and John from the Ministry of Environment

Warm reception with the president of NIGT.

Ghana palm oil

Regulations are the cornerstone of Article 6 implementations but concrete project development must remain at the core as the reality check for every regulation. For this reason, we also remained closely connected to developments on the Article 6 project side in 2024, especially when it comes to impactful initiatives like the Sustainable Artisanal Palm Oil Processing project led by Solidaridad West Africa. Condensing the co-benefits of such a transformative project into a few lines wouldn’t do it justice, and we are proud to critically support Solidaridad in its development.

Cleaning in baseline, discharge into ponds in the back of the container.

Firing in the baseline with wood, spent tires and harvest residues.

Project collects effluents and digests it to collect biogas for heating.

Modernisation of mill for crud palm oil extraction.

Ad Hoc Support to ADB

Alongside our work on regulations and project development, we made sure to keep some time for the nitty-gritties of Article 6. Under our support to ADB’s Article 6 Support Facility, Mischa had the honour of dissecting our favourite topic in a deep dive workshop on Article 6 negotiations for the COP29 Presidency this August. Now that Baku decisions exist, we are eager to dissect the texts’ implications for our clients, from governments to standards.

Coal Phase-Out and Transition Credits

Just Energy Transition is key in fighting climate change. Classen is proud supporting through Climate Smart Ventures the pioneering phase-out of ACEN’s SLTEC plant in the Philippines. We provide concrete advice, employing our network to engage with sovereign buyers and provide technical input to the methodologies and PDD. Through our role in the Zürich Carbon Market Association, we organised a widely recognised event that discussed possible avenues of carbon markets for Just Energy Transition. It was the first time that the three actors working on phase-out methodologies—Gold Standard, Verra, and the Asian Development Bank—jointly discussed their approaches.

Wrap up of 2024