The current prospects for neutralisation claims against the backdrop of Article 6

AFRY, the University of Oxford, and Nasdaq have co-written a paper outlining foundational principles for neutralisation claims under Article 6 of the Paris Agreement, setting the stage for a robust framework to guide accountability and cooperation in carbon removals.

Scaling the carbon removals market a thousand-fold by 2050 is essential if we’re to stay within 2°C. But with global geopolitics now being reshaped on a daily basis, more responsibility for the net zero transition falls on the shoulders of leading global corporations, and any areas of friction or confusion in the market leading to delays in investment need to be resolved immediately.

Against this backdrop, Dr Mostyn Brown, Dr Injy Johnstone, and Tomas Thyblad have written the working paper ‘Neutralisation Claims in the Era of Article 6’, developed with the input of stakeholders from New York Climate Week and COP29. The paper advocates for a balanced approach where carbon removal credits may be co-claimed by a corporation and a nation, provided strict principles are met.

Recommendations

1. Permanent carbon removal should be managed as a global waste disposal service, necessitating cooperation between governments and corporates to effectively neutralise fossil-based emissions.
2. Neutralisation outcomes must adhere to the EU’s QU.ALITY criteria and ensure that financing drives new supply without diminishing existing commitments.
3. Removal target setting and accounting should be kept separate from accounting of emissions and emissions reduction targets, ensuring one actor claims the neutralisation outcome, with disclosure of the physical location and volume-weighted average price supporting transparency in climate claims.
4. Frictionless international cooperation can maximise efficiency and scale through cross-border transactions.