PCS A62 010_Article_6.2_Eligibility_Standard_v1.0
Document Control
Document identification
Document code: PCS-A62-010
Title: Article 6.2 Eligibility Standard
Scope: Defines eligibility requirements, labelling rules, and procedural controls for recognizing PCS projects and PCS-issued units for Article 6.2 cooperative approaches, including authorization, tracking, reporting, and corresponding adjustment readiness.
Version history and change log
Table DC-1. Revision history
v1.0
TBD
Draft
Release for public consultation
PCS
TBD
Superseded versions
No superseded versions for v1.0.
Governance note on versioning and archiving
Only the latest approved version of this Standard shall be used. Superseded versions shall be archived and retained for traceability and audit purposes. Printed or downloaded copies are uncontrolled; stakeholders must refer to the PCS-published version as the authoritative current version.
Chapter 1 - Purpose and scope
1.1 Purpose
This Standard defines the eligibility requirements, labelling rules, and procedural controls for recognizing PCS projects and PCS-issued units as eligible for use under Paris Agreement Article 6.2 cooperative approaches, including authorization, tracking, reporting, and corresponding adjustment readiness where applicable.
1.2 Scope
This Standard applies to: (a) PCS projects seeking an Article 6.2 label at registration and/or issuance; (b) PCS-issued units that are intended to be authorized for international transfer; and (c) PCS registry functions and disclosures required to support Article 6.2 participation.
1.3 Applicability conditions
Condition
Requirement
Defined cooperative approach participation
A participating Party (Host and/or acquiring Party) confirms participation in an Article 6.2 cooperative approach.
Authorization pathway
Host Party authorization is provided for the underlying activity and/or for the international transfer of mitigation outcomes, as applicable.
Tracking capability
PCS Registry can uniquely identify, tag, and track Article 6.2-labelled units from issuance through use or further transfer.
Reporting readiness
Required information for Article 6.2 reporting can be compiled and disclosed as non-confidential information, with confidential elements handled according to PCS rules.
Double counting controls
Controls exist to prevent double issuance, double claiming, and double use, including rules for corresponding adjustments where required.
1.4 Exclusions
The Article 6.2 label shall not be granted where any of the following apply: (a) authorization is absent, inconsistent, or materially incomplete; (b) the cooperative approach does not demonstrate robust accounting and avoidance of double counting; (c) the unit cannot be uniquely identified and tracked across issuance, transfer, and use; (d) required transparency disclosures are not permitted by the participating Party without a justified confidentiality basis; or (e) the project fails to meet PCS program integrity requirements (including safeguards, SDG integrity, and validation/verification requirements).
Chapter 2 - Normative references
The following documents are normative for application of this Standard. Where there is a conflict, the higher-level governing document prevails unless PCS explicitly states otherwise.
2.1 PCS normative documents
Document code
Title
Role in this Standard
PCS-FR-001
Program Framework
Program principles, governance hierarchy, transparency expectations
PCS-MN-002
Program Manual
Operational rules and document precedence; publication and recordkeeping
PCS-PP-013
Program Processes
Process controls for registration, issuance, post-registration changes, and governance cases
PCS-PS-003
Project Standard
Core project eligibility, boundary, additionality, MRV requirements
PCS-VVS-004
Validation & Verification Standard
Assurance requirements for VVBs; evidence and reporting rules
PCS-VVB-012
Procedure for Approval of VVBs
VVB competence and approval requirements
PCS-DC-007
Avoidance of Double Counting & Corresponding Adjustments
Double counting controls and CA treatment
PCS-GN-A6
Governance Note on Article 6 Alignment & Market Readiness
PCS policy position and governance interface for Article 6
PCS-ESS-005
Environmental & Social Safeguards Standard
Safeguards compliance requirements
PCS-SDG-006
Sustainability & SDG Integrity Standard
SDG integrity and claims management
PCS-CN-002
Grid Emission Factors
Where grid factors are used in quantified outcomes
2.2 International and regulatory references (informative for implementation)
Reference
Description
Paris Agreement (Article 6)
Cooperative approaches, mechanism, and non-market approaches
CMA guidance on Article 6.2 cooperative approaches
Accounting, reporting, transparency, review, and infrastructure guidance for Article 6.2 participation
Enhanced Transparency Framework (Article 13) and BTR requirements
Structured summary and reporting tables used by participating Parties
UNFCCC Article 6 infrastructure (CARP / Article 6 database / international registry)
Centralized accounting and reporting platform and supporting infrastructure
Chapter 3 - Terms, definitions, and abbreviations
3.1 Key definitions
Term
Definition (for PCS purposes)
Article 6.2 label
A PCS registry designation indicating that a unit is intended to meet the eligibility requirements for Article 6.2 cooperative approaches, subject to authorization and reporting by participating Parties.
Authorization
A formal decision by the Host Party authorizing the international transfer and/or use of mitigation outcomes from an underlying activity, including any specified limits, conditions, purpose(s), and applicable time periods.
ITMO
An internationally transferred mitigation outcome used toward NDCs or other internationally agreed purposes, consistent with Article 6.2 guidance.
First transfer
The first international transfer of a mitigation outcome as defined by the participating Party(ies) and reflected in tracking and reporting systems.
Corresponding adjustment (CA)
An adjustment applied by participating Party(ies) to avoid double counting when mitigation outcomes are used internationally, consistent with Article 6.2 accounting guidance and the agreed use case.
Use
Application of a unit toward an NDC or other internationally agreed purpose, or cancellation/retirement for a defined use case as specified by authorization and PCS labelling rules.
3.2 Abbreviations
Abbreviation
Meaning
A6.2
Article 6, paragraph 2, of the Paris Agreement
CA
Corresponding adjustment
CARP
Centralized Accounting and Reporting Platform (UNFCCC)
ITMO
Internationally transferred mitigation outcome
NDC
Nationally determined contribution
PCS
Planetary Carbon Standard
VVB
Validation and Verification Body
Chapter 4 - Eligibility principles
Article 6.2 eligibility under PCS is grounded in the following principles: environmental integrity; transparency; robust accounting; avoidance of double counting; authorization clarity; traceability from issuance through use; and independent assurance. These principles apply alongside PCS safeguards and SDG integrity requirements.
Principle
Operational implication under PCS
Environmental integrity
Credited mitigation outcomes must be real, measurable, verified, and additional under PCS rules.
Transparency
Non-confidential information is disclosed in a consistent format; confidentiality claims are justified and limited.
Robust accounting
Units are tracked with unique identifiers and tagged with authorization attributes and use case.
Avoidance of double counting
Controls prevent double issuance, double use, and double claiming; CA is applied where required by the authorized use case.
Authorization clarity
Authorization must specify authorized entities, scope, purpose, vintage/period, limits, and any conditions.
Independent assurance
VVB validation/verification confirms eligibility evidence and confirms reported data used for tagging and disclosures.
Chapter 5 - Eligibility requirements
5.1 PCS program integrity preconditions
To be eligible for an Article 6.2 label, the project shall comply with all applicable PCS requirements, including Project Standard requirements, validation/verification requirements, safeguards requirements, and SDG integrity requirements. Non-compliance with PCS core requirements disqualifies a project from Article 6.2 labelling until corrected.
5.2 Host Party requirements (authorization and participation)
The Host Party authorization package shall be provided in a form acceptable to PCS and shall include, at minimum, the information in Annex A. Authorization must be internally consistent across submitted documents and must explicitly identify whether mitigation outcomes are authorized for international transfer, and for what use case(s).
5.3 Authorization attributes required for PCS labelling
Attribute
Minimum requirement
Host Party identity and contact point
Clear identification of the authorizing Party and responsible authority.
Underlying activity identification
Project ID (PCS), project name, location, and sector/methodology.
Authorized entity(ies)
Identification of authorized entities and any limits on transfer or use.
Authorization scope
Whether authorization covers: (a) participation in a cooperative approach; (b) first transfer; (c) further transfers; (d) use toward NDC and/or other purposes.
Use case / purpose
Explicitly state the intended purpose (e.g., NDC use, other internationally agreed purpose) and any restrictions.
Time period / vintage constraints
Crediting period or vintage windows covered by the authorization.
Revocation/updates
Rules on whether and how authorization can be updated, suspended, or revoked; effective dates.
Confidentiality markings
If any information is claimed confidential, the basis and scope of confidentiality are specified.
5.4 Corresponding adjustment readiness
Where the authorized use case requires corresponding adjustments, PCS will only apply an Article 6.2 label at issuance if the Host Party provides evidence that the accounting pathway and reporting arrangements are in place to apply corresponding adjustments consistent with the authorized use. Where CA is not required for the authorized use case, PCS will label the unit accordingly and prohibit claims inconsistent with the authorization.
5.5 Avoidance of double counting
PCS shall implement controls to prevent double issuance, double use, and double claiming. At minimum, PCS shall: (a) issue units with unique serial identifiers; (b) prevent duplicate issuance for the same quantified mitigation outcome; (c) track transfers, cancellations, and retirements; (d) apply tagging rules for Article 6.2-labelled units; and (e) enforce claim restrictions based on authorization attributes.
5.6 Additional labelling rules
Label element
Rule
Article 6.2 label status
Granted only after eligibility evidence is reviewed and accepted; may be suspended or withdrawn.
Authorization status
Displayed as Authorized / Not Authorized / Authorization Pending, based on documentary evidence and PCS review outcome.
CA status
Displayed as CA Required / CA Not Required / CA Pending, based on authorized use case and available evidence.
Confidentiality flags
Only permitted for fields justified as confidential; non-confidential summary remains public.
Use restrictions
Displayed and enforced (e.g., NDC use only, OIMP only, transfer limits).
Chapter 6 - Procedural requirements
6.1 Application for Article 6.2 label
6.2 Issuance and tagging
Article 6.2-labelled units shall be issued with unique serial identifiers and shall include registry attributes specified in Annex B. Issuance shall not proceed where required label attributes are missing or materially inconsistent with validated/verified project information.
6.3 Transfer, use, cancellation, and retirement
PCS shall track all movements of Article 6.2-labelled units, including first transfer, further transfers, cancellations, and retirements. Where a unit is retired for a specific use case, PCS shall record the use case and enforce any related claim restrictions.
6.4 Post-registration changes affecting Article 6.2 eligibility
Any post-registration change that may affect authorization scope, quantified outcomes, or labelling attributes shall be processed through the PCS post-registration change procedure. If a change materially affects eligibility, PCS may suspend the Article 6.2 label until the change is assessed and resolved.
6.5 Suspension, withdrawal, and corrective actions
PCS may suspend or withdraw an Article 6.2 label where: authorization is revoked or invalidated; material misstatements are identified; double counting risks emerge; reporting readiness is lost; or a project is found non-compliant with PCS integrity requirements. Corrective actions shall be time-bound and recorded. Where necessary, PCS may cancel or freeze affected units.
Chapter 7 - Reporting, transparency, and confidentiality
7.1 Transparency requirements
PCS shall publish non-confidential information sufficient to support stakeholder confidence in Article 6.2 eligibility, including project identity, authorization status, use restrictions, CA status (where applicable), and issuance/transfer/retirement status.
7.2 Confidentiality
PCS will respect confidential information identified by participating Parties only where a clear basis is provided. Confidentiality shall be limited to the minimum necessary scope and shall not prevent disclosure of a meaningful non-confidential summary.
7.3 Data alignment and interoperability
PCS shall structure registry attributes to facilitate participating Party reporting, including the ability to export standardized datasets for Party reporting systems and the UNFCCC infrastructure where applicable.
Chapter 8 - Data requirements and recordkeeping
8.1 Minimum dataset for Article 6.2-labelled units
Data field
Description
PCS Project ID
Unique project identifier in the PCS Registry
Unit serial identifier
Unique serial number for each unit
Vintage / monitoring period
Time period to which the unit relates
Authorization status
Authorized / Not Authorized / Pending
Authorized use case
NDC use and/or other purpose, as specified
CA status
Required / Not required / Pending
First transfer indicator
Whether the unit has been first transferred
Transfer and current holder
Audit trail of transfers and current account holder
Retirement/cancellation status
Retired/cancelled and purpose
Key documents
Links/IDs to authorization, validation/verification reports, and relevant PCS decisions
8.2 Record retention
PCS shall retain authorization packages, validation/verification records, and registry transaction logs for a minimum period specified by the Program Manual. Records shall be maintained in a manner that supports audits, governance reviews, and dispute resolution.
Chapter 9 - Non-compliance and enforcement
Non-compliance with this Standard shall be addressed through PCS corrective action procedures. Depending on severity, PCS may impose conditions, suspend labels, freeze units, require re-verification, cancel units, or refer the matter to governance bodies under the grievance and appeals framework.
Annexes
Annex A. Minimum Host Party authorization information (checklist)
Item
Minimum requirement
A.1 Authorizing authority
Name, title, institution, and contact details
A.2 Authorization statement
Explicit authorization for transfer/use; scope and limits
A.3 Activity identification
PCS project ID, name, location, methodology, sector
A.4 Authorized entity(ies)
Names and identifiers of authorized entities
A.5 Use case(s)
NDC use and/or other purpose; restrictions
A.6 Vintage/period
Applicable period(s) or vintages covered
A.7 CA approach
How CA will be applied where required (high level)
A.8 Conditions
Any conditions, ceilings, revocation clauses, reporting constraints
A.9 Signature and issuance date
Authorized signature(s) and date; verification features if available
Annex B. Registry label attributes for Article 6.2 units
Attribute
Values / format
A6.2 label
Yes/No
Authorization status
Authorized / Not Authorized / Pending
Authorization reference
Host Party reference number and date (or equivalent)
Use case
NDC / Other internationally agreed purpose / Other (specified)
CA status
Required / Not required / Pending
Confidentiality flags
Field-level flags where applicable
First transfer date
Date of first transfer (if applicable)
Retirement purpose
Purpose code and narrative
Annex C. Corresponding adjustment trigger logic (high-level)
PCS applies CA-related tagging based on authorization attributes and the declared use case. Where CA is required, PCS requires evidence of a CA pathway before issuing an Article 6.2 label at issuance. PCS may grant a conditional label where authorization is valid but CA evidence is pending, provided that claim restrictions and transfer limitations are enforced until CA status is confirmed.
Annex D. Document checklist for Article 6.2 labelling
Document
Minimum requirement
PCS Project Submission and registration documents
Complete and consistent project identity and eligibility information
Validation report (or equivalent)
Confirms eligibility claims and key data fields used for tagging
Authorization package
Meets Annex A checklist requirements
Double counting and CA documentation
Evidence supporting accounting pathway and claim restrictions
Safeguards and SDG documentation
Evidence of compliance with PCS safeguards and SDG integrity requirements