Breaking Ground in Article 6 Carbon Market Innovation with Vetted Projects Supporting Sustainable Development Goals and Raising Global Climate Ambition
Auction Date: January 27th – February 5th
The Climate Action Center of Excellence (CACE), established by the Gulf Organisation for Research and Development (GORD), is collaborating with Emsurge, Climate Impact X (CIX), and CFC, a specialist insurance provider, to organize the auction featuring Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 of the Paris Agreement. The auction represents a significant step in promoting transparency, efficiency, and accountability in the global carbon market.
The electronic auction on the Emsurge platform will feature ITMOs sourced from Cambodia, carefully selected by CACE for their robust community impact and alignment with the Paris Agreement rules and regulations. Participants will benefit from CACE’s due diligence and Emsurge’s technology to ensure transparent and fair access to the limited emerging supply of legitimate ITMOs.
As Emsurge supports over-the-counter and exchange-settled deals, smaller buyers will be welcomed to participate in the auction for spot Cambodian VCS ITMOs exclusively via CIX’s market-leading clearing and settlement service, CIX Clear. This service offers streamlined trade settlements and eliminates the need for onboarding and know-your-customer directly with Auction Sellers. Buyers will also have optional access to CFC’s specialized insurance against ITMO cancellation risks, ranging from political and legal challenges to natural catastrophes.
Dr. Yousef Alhorr, Founding Chairman of GORD, emphasized the significance of this collaboration: “By combining CACE’s deep knowledge of Article 6 frameworks with Emsurge, CFC and CIX’s market capabilities, we are laying the foundation for impactful and credible climate solutions.”
Melissa Lindsay, Founder and CEO of Emstream and Emsurge, said Article 6 brings high-impact carbon credits to the market that raise global government ambitions and the cost of failing to decarbonize. “Through our partnership with CACE, we are thrilled to support the creation of a more robust supply of Article 6 credits, including CORSIA aligned credits, through capacity building,” she said. “Through this partnership, buyers can confidently procure carbon credits aligned with Article 6 of the Paris Agreement.”
For Kea Sophou, Takeo Deputy Governor and Chairwoman of Cambodian Women for Peace and Development, the most significant outcome of this initiative is community impact. “Most people in rural areas rely on perforated wells, dug wells, groundwater, rivers, and streams for drinking water, which they often have to boil,” she explained. “However, this method does not guarantee water quality. Through our supported projects, we bring tangible benefits to poor and near-poor households within the community.”
Ellery Sutanto, Head of Exchange at CIX, said he believes operationalizing Article 6 is a critical next step in the evolution of global carbon markets, “and the ability to facilitate cross-border trading of ITMOs is key to its success. This partnership reflects a shared commitment to driving market efficiency and connectivity while underscoring the critical role of trusted market solutions in making Article 6 a reality.”
Van Bui, Overseas Business Development Executive at SIPCO, said she and her colleagues are thrilled to collaborate with CACE and Emsurge to support the launch of the first auction for ITMOs from Southeast Asia. “This partnership represents a significant step forward in promoting accountability and accessibility in the carbon market,” she said, thus ensuring that stakeholders have a clear and trustworthy platform for impactful climate action.”
George Beattie, Head of Innovation at CFC, added that his organization is proud to support CACE and Emsurge in their innovative approach to high-fidelity ITMO auctions. “Our partnership ensures comprehensive coverage that promotes trust and accountability,” he said, “thereby building on the progress represented by the ratification of Article 6 at COP 29.”
Grouped Project for Cambodia Water Purifier
- Type: Verra + SDVista certification expected Q1 2025
- Letter of Authorization: Available from the competent Government authority, with Initial Report submitted.
- Impact: Supports clean water, health, and reduced emissions, contributing to Cambodia’s climate and sustainable development objectives.
- Benefits:
- Contributions to SDGs, verified by SDVista.
- Available for immediate issuance and use upon successful participation in the auction. ITMOs will be labelled with Article 6 Authorised Use Cases (Other International Mitigation Purposes) in the Verra Registry.
- Economic empowerment through the distribution of locally produced water purifiers.
- Key Feature: 140,000tCO2e Vintage 2023 spot, and 100,000tCO2e Vintage 2024 expected August 2025.
Why Participate?
- Environmental Leadership: Allows corporations to align their sustainability goals with high-impact projects that deliver verifiable emissions reductions supporting and raising country-level ambitions.
- Market Opportunity: This enables buyers to secure competitively priced ITMOs fully vetted for A6 label alignment and project compliance with country NDCs.
- Community Impact: Acquiring these IMTOs simultaneously contributes to projects generating significant social and economic benefits in targeted developing nations.
How to Participate
- Interested parties can register their interest by filling out the Buyer Participation Form here.
- The Buyer Terms and Conditions will be shared and must be signed and returned.
- Participants can access project spotlights, A6 labels, and bidding information on the Emsurge Platform.
- Participants can then bid during the auction window and finalize their transactions in accordance with auction terms.
