The Royal Government of Cambodia (RGC) has issued an operations manual for the implementation of Article 6, which acts as a legal framework on Article 6 implementation and participation, including a governance and institutional framework; an engagement approach; and defined processes from pre-implementation and implementation to issuance, transfer, and the application of corresponding adjustments. The manual also outlines the eligibility of projects for authorisation through a 'positive list' of projects, referred to as greenhouse gas emission reduction (GHG ER) projects. The manual appoints the Ministry of Environment as the National Authority for the GHG ER Mechanism, giving it the authority to issue letters of no objection, letters of authorisation (LoA), and positive examinations for GHG ERs from eligible projects in the country.
Governance and Institutional Framework
The National Authority's functions encompass the following entities and responsibilities:
- The Chair of the National Authority signs letters of authorisation for the international transfer of GHG ERs under Article 6;
- The Coordinator of the National Authority:
- Signs letters of no objection for GHG ER projects;
- Submits LoAs to the Chair of the National Authority;
- Notifies project proponents about rejection, authorisation, and positive examination; and
- Monitors compliance with provisions of the Article 6 Operational Manual.
3. The Technical Group of the National Authority reviews and assesses requests for authorisation and prepares a technical assessment report with findings and recommendations.
4. The Secretariat of the National Authority:
- Receives requests for no objection, authorisation, and positive examination;
- Supports assessments and monitoring of activities of the National Authority;
- Supports information management of the National Registry.
A National Registry: The RGC will develop a National GHG ER Registry to support the tracking of GHG ER projects being planned or implemented in the country.
Eligibility of GHG ER Projects for Article 6 Authorisation
All project proponents seeking the authorisation of GHG ERs generated from their projects are required to satisfy the following criteria:
- Inclusion in the ‘positive list’ of GHG ER projects;
- Share of GHG ERs reserved for domestic use;
- Authorisation period aligned to Article 6.4 crediting periods;
- Authorised GHG ERs issued by an eligible carbon mechanism;
- GHG ERs are real, verified, and additional;
- GHG ERs are generated from 2021 onward;
- GHG ER project ensures environmental integrity by setting conservative baselines and below ‘business-as-usual’ emission projections and minimizing risk of non-permanence;
- GHG ER project is aligned with RGC's sustainable development priorities.
Process for Article 6 GHG ER Projects
1. Project pre-implementation
Step 1: No Objection (optional): Requesting a Letter of No-Objection is an optional step for all GHG ER projects.
Step 2: Validation: Requesting independent validation in line with the procedures established by the relevant carbon mechanism.
Step 3: Authorisation: Requesting a LoA is a mandatory step for all project proponents seeking the Article 6 authorisation of GHG ERs.
Step 4: Initial report: Following the issuance of LoA, the National Authority Secretariat will submit an Article 6 initial report to the United Nations Framework Convention on Climate Change (UNFCCC).
2. Project implementation
Step 1: Project registration
Step 2: Project implementation
Step 3: Verification
Step 4: Positive examination
Step 5: Update project information in national registry
3. Issuance and transfer/cancellation
Step 1: Request issuance of GHG ERs
Step 2: Inform National Authority of GHG ER issuance
Step 3: Request first transfer/cancellation of GHG ERs
Step 4: Inform National Authority of first transfer/cancellation of GHG ERs
Step 5: Include GHG ER use in annual information
Step 6: Apply corresponding adjustment(s) : Corresponding adjustments apply to the total authorised GHG ERs first transferred each year in the NDC implementation period. For GHG ERs authorised for use towards another country's NDC, the 'first transfer' is the initial international transfer, triggering the adjustment. For GHG ERs authorised for Other International Mitigation Purposes (OIMP), the 'first transfer' is either authorisation, issuance, or use/cancellation as specified in the LoA.
Ownership of Authorised GHG ERs for International Transfer and Fees
The RGC has sovereign rights to the GHG ER resources that can be achieved in Cambodia, however, Cambodia can also grant ownership of GHG ER units to authorised project participants. For projects with Letters of Authorisation, ownership is transferred at the time of GHG ER issuance according to the distribution. If the government facilitates enabling policies or legal frameworks for ER projects but is not a participant, it can claim up to 10% ownership. Furthermore, ownership of GHG ER units can be revoked if the project proponent fails to comply with Article 6 Operations Manual provisions. Revenue from sales of ERs owned by RGC goes to the Environmental and Social Fund. Administrative fees for Article 6 authorisation will be charged, as well as a corresponding adjustment fee. This fee supports the RGC in increasing its level of mitigation and adaptation efforts. REDD+ fees may apply for monitoring and evaluating REDD+ projects.
Article 6 Engagement Approach and Participation Requirements
Phase 1, Pilot Article 6 Engagement: Criteria for evaluating Article 6 authorisation requests will be established until December 2025. This limited period aims to minimise authorisations while the government becomes accustomed to new governance frameworks, tracking systems, and reporting to the UNFCCC.
Phase 2, Scaled-up Article 6 Engagement: Lessons from Phase 1 will inform a review of authorisation criteria, updated in the next revision of the Article 6 Operations Manual in 2025.
