PCS GN A6 Governance Note on Article 6 Alignment & Market Readiness_v1.0
Planetary Carbon Standard (PCS) - Governance Note on Article 6 Alignment
Document type: Governance Note (Article 6 Alignment & Market Readiness) Version: v2.0 (Draft) Status: Draft for Public Consultation Effective date: To be assigned upon PCS approval
Developed by Planetary Carbon Standard (PCS)
© 2025 Planetary Carbon Standard. All rights reserved
Document Control
Document identification
Document code: PCS-GN-A6
Title: Governance Note on Article 6 Alignment & Market Readiness
Scope: Defines how PCS governance structures, processes, and registry controls align with Article 6 mechanisms (6.2, 6.4, 6.8), including authorization, corresponding adjustment tagging, transparency, traceability, and interoperability with host country systems.
Outcome: Provides the PCS policy and governance basis for Article 6 readiness, including how PCS prevents double counting and supports reporting compatibility for authorized outcomes.
Version history and change log
Table DC-1. Revision history
v1.0
01/06/2025
Current
Initial PCS release
PCS
PCS Regulatory Council
Superseded versions
No superseded versions for v1.0.
Governance note on versioning and archiving
Only the latest approved version of this Governance Note shall be used as the authoritative reference. Superseded versions shall be archived and retained for traceability and audit purposes, consistent with PCS governance rules.
Governance Note on Article 6 Alignment
This Governance Note outlines the alignment of the Planetary Carbon Standard (PCS) with Article 6 of the Paris Agreement. It provides a policy and governance overview describing how PCS maintains environmental integrity, transparency, and compatibility with international carbon market mechanisms while supporting voluntary and compliance-based applications.
Section A - Purpose and Scope
The purpose of this note is to define how PCS governance structures, processes, and registries align with the operational principles of Article 6 of the Paris Agreement. It applies to all PCS-certified activities, methodologies, and registries, ensuring readiness for linkage with host country systems and international market frameworks.
Section B - Overview of Article 6 Mechanisms
Article 6 of the Paris Agreement establishes mechanisms for cooperative approaches and market-based mitigation actions, including:
Article 6.2 - Internationally Transferred Mitigation Outcomes (ITMOs) enabling country-to-country cooperation.
Article 6.4 - The UNFCCC mechanism for verified mitigation activities overseen by the Article 6.4 Supervisory Body.
Article 6.8 - Non-market approaches promoting sustainable development and climate cooperation.
PCS is designed to complement these mechanisms by enabling transparent, credible carbon accounting, with features suitable for use in both voluntary and compliance markets under Article 6 governance principles.
Section C - PCS Governance Structure and Article 6 Readiness
PCS governance architecture includes the following bodies and processes aligned with Article 6 oversight requirements:
PCS Regulatory Council – Responsible for standard-setting, appeals, and Article 6 compliance oversight.
PCS Secretariat – Manages registry operations, project approvals, and host-country communications.
Validation and Verification Bodies (VVBs) – Conduct independent assurance aligned with ISO 14065 and Article 6.4 validation rules.
Host Country Focal Points – Endorse or authorize PCS projects for use toward NDCs or ITMO transfers.
The PCS Registry integrates audit trails, public reporting, and blockchain timestamping to meet transparency and traceability standards consistent with Article 6.2 and 6.4 reporting modalities.
Section D - Authorization and Corresponding Adjustments
PCS ensures that all projects seeking use under Article 6 mechanisms include host-country authorization prior to credit issuance. Each issued Planetary Carbon Unit (PCU) contains unique identifiers and digital metadata confirming:
Host country of origin and authorization reference.
Whether the credit is authorized for ITMO transfer or voluntary use.
Statement of Corresponding Adjustment status (Applied / Not Applied).
PCS prevents double counting by using immutable blockchain records, cross-referencing of registry entries, and unique serial numbering for each PCU consistent with UNFCCC reporting formats.
Section E - Environmental Integrity and Transparency
PCS upholds environmental integrity and transparency through multi-layered assurance mechanisms, including:
Independent validation and verification by accredited VVBs.
Public disclosure of project design, monitoring, and issuance data.
Registry-based tracking with blockchain verification hashes for all transactions.
Safeguards and SDG integration ensuring net-positive social and environmental outcomes.
These measures collectively meet and exceed Article 6.4 requirements for transparency, governance, and mitigation outcome integrity.
Section F - Integration with Nationally Determined Contributions (NDCs)
PCS facilitates cooperation with host countries by enabling project-level and aggregated reporting compatible with NDC accounting systems. Key integration pathways include:
Host country LOA (Letter of Authorization) linked to PCS registry entries.
Automatic generation of data summaries compatible with Biennial Transparency Reports (BTRs).
Corresponding adjustment tagging to identify credits used toward or outside NDC commitments.
Through these mechanisms, PCS ensures that all authorized activities are consistent with host-country climate policies and UNFCCC guidance.
Section G - PCS Contribution to Global Carbon Markets
PCS provides a governance and operational bridge between voluntary and compliance carbon market ecosystems. Its digital verification, blockchain-backed registry, and transparent validation processes enable interoperability with:
Article 6.4 UNFCCC Mechanism (pending full operationalization)
Article 6.2 bilateral cooperation frameworks
Voluntary standards and markets emphasizing integrity and SDG impact (e.g., ICVCM, VCMI)
This dual compatibility ensures that PCS-certified projects contribute effectively to both national and global climate objectives.
Section H - References and Revision History
Key References:
Paris Agreement (2015), Articles 6.2, 6.4, and 6.8
UNFCCC Article 6.4 Supervisory Body Recommendations (2023–2024)
ISO 14064-2:2019 (GHG Project-level Quantification and Monitoring)
PCS Framework v2.0 (2025)
v1.0
01/06/2025
Initial PCS Release
PCS Regulatory Council