In Glasgow, COP26 negotiators made important progress to help keep a 1.5-degree ambition alive. We saw technical clarity on market mechanisms as well as some bold pledges and further calls-to-action for increased ambition in non-market approaches to catalyse finance for climate and development.
We’ve summarised below some key outcomes relevant for different Gold Standard stakeholders, as well as some announcements about new collaborations we're pleased to share.
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For carbon markets
Gold Standard welcomes the adoption of an Article 6 rulebook, which reflects many of the positions Gold Standard advocated for, including a framework for countries to account robustly for mitigation efforts within their territory - both compliance and voluntary - as well as important requirements for Article 6 activities to contribute to sustainable development.
Read our full analysis of Article 6
Listen back to our official UNFCCC side event
co-hosted with the Swiss Federal Office of the Environment
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Gold Standard will now redouble efforts to enable our standard to be used by project proponents developing activities under Article 6. In parallel, we will continue to work to mainstream the use of impact claims for unadjusted units.
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- We will review the results of the recently closed consultation on the process to manage units authorised under Article 6.
- Host the first meetings of a new working group and consultation group who will support Gold Standard’s work to align with and maximise impact under the Paris Agreement.
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- To express interest in our Article 6 early-movers programme, which will provide support to project developers, host countries and other stakeholders seeking to take forward early Article 6 activities, please share your details here.
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We are committed to translating these momentous Article 6 decisions into new opportunities for project developers and the wider Gold Standard community.
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For corporate sustainability
Gold Standard welcomes the corporate pledges made in Glasgow, whilst echoing the need to back those pledge with robust plans, transparent performance reporting, and accurate, credible claims.
Gold Standard will continue to ensure the highest levels of integrity in carbon credits we issue so that companies can confidently participate in carbon markets as part of their climate strategies. We will continue to work as part of the advisory group for the Voluntary Carbon Market Integrity Initiative to help ensure this is true across the broader market.
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Last week, we launched the newly evolved Value Change Initiative with our partners at SustainCERT, aimed at ‘making Net Zero value chains possible’. Following Value Change guidance allows companies to reduce their Scope 3 emissions and claim them toward Science Based Targets, in line with the Greenhouse Gas Protocol.
It's clear that collaboration among companies with shared sourcing areas will be critical towards making Net Zero value chains a reality. Gold Standard will therefore also engage with corporate collective action funds to drive supply chain decarbonisation, landscape regeneration, resilience, and sustainable development. [See more information below]
Recognising the interconnectedness of all these new opportunities for impact, Gold Standard will shortly launch a ‘claims review’ service, based on good practice principles. Alongside this, Gold Standard will work to develop a performance reporting framework that rationalises the different actions and the claims they unlock, building on the Net Zero standard developed by the Science Based Targets Initiative. More to follow on this important work, including opportunities for collaboration.
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For climate finance
Parties to the CoP agreed to reach the US$100 billion goal for climate finance commitments, much of which must come from the private sector. By combining higher risk investors, such as multilateral development banks (MDBs) and development finance institutions (DFIs) with more conservative investors (e.g. pension funds), blended finance approaches help private finance take on the risks associated with investments in developing countries or less commercial sectors.
Gold Standard is working to ensure that impact fund managers driving such blended vehicles identify and deliver the highest impact projects through piloting in the Subnational Climate Finance (SCF) initiative.
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A claims framework for fund managers is also under development that will result in additions to our existing claims guidance to recognise investors making contributions to ambitious sustainable development through their investments. Building on this experience, Gold Standard will work with SCF consortium members to replicate this blended finance model to maximise impact in a number of regions.
The Glasgow CoP text also commits developed countries to double the collective share of adaptation finance within the $100 billion annual target for 2021-2025, and the European Commission has responded by pledging €100 million in finance for the Climate Adaptation Fund. In recognition of the need to rapidly scale efforts supporting adaptation and ensure they deliver maximum climate and development impact, Gold Standard is working with the Resilient Cities Catalyst (RCC) to create an Adaptation Framework that will support project developers in accessing adaptation finance using Gold Standard.
Finally, the landmark declaration made by 141 Parties emphasised the critical and interdependent roles of forests of all types, biodiversity and sustainable land use in enabling the world to meet its sustainable development goals. It was notable that there is an increased understanding of the need for holistic approaches to climate that consider multiple SDGs simultaneously, including those for adaptation, biodiversity, and livelihoods.
To support these efforts, Gold Standard is working with IUCN to develop a certification process for nature-based solutions, to enable project developers to be rewarded for designing nature-based activities through market mechanisms as well as through innovative climate finance mechanisms that can be valued by investors.
We have also signed an MOU with the Landscape Finance Lab, aiming to mobilise finance for projects that address corporate supply chain emissions among multiple companies with shared sourcing areas. Companies will be able to contribute to collective action funds to meet climate targets, while supporting regeneration and resilience of landscapes and maximising positive contributions to both climate mitigation and adaptation, as well as the broader Sustainable Development Goals.
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ANNOUNCEMENT
ACCELERATING ACTION THROUGH DIGITISATION
To make ambition achievable, we are embarking on a journey with partners to digitise our standards and the certification process. At COP, we announced a collaboration with Climate Check and IOTA Foundation to develop next generation digital solutions for measurement, reporting and verification (MRV) in an integrated, accessible way that can radically scale impact.
The consortium will invite stakeholder participation as an open network and a “big tent” community of practice – stay tuned for more information.
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NEXT STEPS
MOVING FORWARD TOGETHER
We were inspired by our engagement with many of you during COP26. We expect that these new developments represent new opportunities for Gold Standard project developers, VVBs, companies and investors alike – within carbon markets and beyond in sustainable finance. If you have questions about any outcomes from Glasgow and what they mean for you, please reach out to our team members or send a message to help@goldstandard.org.
We look forward to continued and strengthened partnerships over the next year and beyond as we build for a climate-secure and sustainable future together.
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