Since 2018 the Sustainable Development Initiative (SDI) has developed good practices to create the conditions for sustainable development in Article 6 of the Paris Agreement. These include the key areas that should be considered in the robust design of activities and their subsequent implementation, monitoring, reporting and verification (MRV) for sustainable development. This document presents these good practices in the form of a simple guidance that may be used to conduct a ‘preliminary assessment’ of a potential Article 6 activity. While other uses may become apparent, it is primarily aimed at enabling early, desk-based assessments of the potential of the proposed activity to deliver sustainable development benefits. While all activities are contextually different, it is envisaged to be applied at the concept development stage of an activity, before detailed design is in place (i.e. ‘ex ante’). This can satisfy buyers/funders of the activities and assist the proponent in identifying further work needed.
The primary users of this approach are various, though most directly the activity proponents and those involved in assessing and agreeing Internationally Transferred Mitigation Outcome (ITMO) agreements. While a robust preliminary assessment does not guarantee subsequent results, it can assist all parties in understanding and establishing the conditions for success. The process of assessment may also vary, depending on who initiates, who provides and who conducts the review. This guidance does not preclude any possible process, but suggests that the process outline in Section 2.0, below, represents a good practice approach.
The following sustainable development good practices are included in the assessment criteria. Each is covered in a section of the Guidance:
1. Activity governance
2. Safeguards
3. Stakeholder inclusivity
4. Sustainable development impact assessment
5. Transparency