The Project Developer Forum (PD Forum)1 has issued a strong warning to the UN body overseeing carbon market rules under the Paris Agreement, saying a proposed standard for ensuring the permanence of emissions reductions could cripple the emerging market for nature-based climate solutions.
In a formal submission to the Article 6.4 Supervisory Body (SB), the industry group said the draft permanence standard is “overly conservative” and risks driving project developers away from the mechanism entirely. The PD Forum argued that the proposed rules — particularly the definition of “negligible” reversal risk and the requirement for potentially perpetual monitoring after credits are issued — would impose unmanageable costs and legal uncertainty.
“The proposed standard prioritises overly-conservative accounting to such an extreme degree that it threatens market viability,” the Forum said. “What the PACM needs is accuracy in emissions accounting, not excessive conservativeness that prices nature-based projects out of existence.”
The group also criticised the consultation process, requesting “that the SB and MEP increase timeframes for public input across all consultations in a manner proportional to the novelty and complexity of the issues at stake.
“Rushed consultations on complex technical matters prevent stakeholders from providing the informed, constructive feedback necessary for effective implementation.”
More than 100 stakeholders reportedly submitted comments, with a majority supporting provisions that would enable nature-based projects. However, the Forum said this feedback was “not fully reflected” in the Supervisory Body’s latest response.
The PD Forum has called for a pause in adoption of the draft standard until its potential impacts are properly assessed, and for a new consultation process allowing more time for expert and public input. It also urged the creation of specialised working groups to bring deeper technical expertise to rule development.
Nature-based solutions — such as reforestation, ecosystem restoration and soil carbon management — are seen as a key component of global efforts to limit warming to 1.5°C. The Forum warned that excluding such projects through excessive accounting conservativeness would undermine both the credibility of the Article 6.4 mechanism and international climate goals.
The Article 6.4 Supervisory Body is expected to finalise key market rules in the coming months, ahead of COP30 negotiations in Belém, Brazil, later this year.
Notes
[1] A representative body for companies and organizations developing low-carbon projects
