# 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**

| Version | Date | Status | Summary of changes              | Prepared by | Approved by |
| ------- | ---- | ------ | ------------------------------- | ----------- | ----------- |
| 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### Superseded versions

No superseded versions for v1.0.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 Superseded versions shall be **archived** and retained for traceability and audit purposes.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

{% stepper %}
{% step %}

### Submit request

Responsible party: Project Proponent / Authorized Entity

Key outputs: Request for Article 6.2 label and authorization package
{% endstep %}

{% step %}

### Completeness check

Responsible party: PCS Secretariat

Key outputs: Completeness determination; request for clarifications if needed
{% endstep %}

{% step %}

### Validation/verification checks

Responsible party: VVB

Key outputs: Confirmation that documentation and data used for tagging are consistent with validated/verified project information
{% endstep %}

{% step %}

### PCS eligibility assessment

Responsible party: PCS Secretariat / Governance

Key outputs: Decision to grant label, grant with conditions, or reject
{% endstep %}

{% step %}

### Registry tagging

Responsible party: PCS Registry

Key outputs: Apply label, authorization attributes, CA status, and use restrictions
{% endstep %}

{% step %}

### Publication

Responsible party: PCS Secretariat / Registry

Key outputs: Publish non-confidential summary and label attributes
{% endstep %}
{% endstepper %}

### 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 |
