CDM to Article 6 Transition Support: Get Up to $500,000 in Technical Assistance for Carbon Credit Projects

If you own or manage a Clean Development Mechanism (CDM) project and you’re trying to figure out how it fits into the post-Paris Agreement carbon market landscape, you’re not alone. Thousands of CDM projects are facing the same question: how do we transition from the old Kyoto Protocol framework to the new Article 6 mechanisms under the Paris Agreement?

The UNFCCC Secretariat and various partner organizations are offering technical assistance packages worth $150,000 to $500,000 to help CDM project developers make this transition. This isn’t cash that goes into your bank account—it’s expert support, capacity building, and technical services to help you navigate the complex process of converting your CDM assets into Article 6-compliant carbon credits that can be traded in the new global carbon market.

The transition matters because the CDM is essentially winding down. The Kyoto Protocol’s second commitment period ended in 2020, and while some CDM projects continue to generate Certified Emission Reductions (CERs), the market for these credits has collapsed. Meanwhile, Article 6 of the Paris Agreement establishes new mechanisms for international carbon trading, but the rules are different, the requirements are more stringent, and the transition pathway isn’t always clear.

This support program helps you understand the new requirements, assess whether your project can qualify under Article 6 mechanisms, prepare the necessary documentation, build capacity among your team and local partners, and navigate the authorization process with national governments. For many CDM projects, especially those in developing countries, this technical assistance is the difference between successfully transitioning to the new system and being left behind.

Key Details at a Glance

What This Technical Assistance Actually Provides

The support package isn’t a simple grant check. It’s a comprehensive set of services designed to help you successfully transition your CDM project to Article 6 compliance. Here’s what’s typically included:

Gap analysis and feasibility assessment to determine whether your CDM project can qualify under Article 6.4 (the successor to CDM) or Article 6.2 (cooperative approaches between countries). Not every CDM project will qualify—some methodologies aren’t approved yet, some project types face additional hurdles, and some projects may not meet the new additionality and environmental integrity requirements. The assessment tells you where you stand and what needs to change.

Methodology alignment and updating because Article 6 has different methodological requirements than CDM. Your project might need to adopt a new baseline methodology, update your monitoring plan, or demonstrate additionality under new criteria. Technical experts help you identify the right methodology and prepare the necessary documentation.

Capacity building for your project team and local partners through workshops, training sessions, and hands-on support. The new Paris Agreement framework emphasizes transparency, sustainable development benefits, and stakeholder engagement more than CDM did. Your team needs to understand these requirements and how to meet them.

Documentation preparation and review including project design documents, monitoring reports, sustainable development impact assessments, and stakeholder consultation records. Article 6 requires more comprehensive documentation than many CDM projects provided, and it needs to meet specific formats and standards.

Support for national authorization processes because under Article 6, your host country government must explicitly authorize your project and the transfer of mitigation outcomes. This is a new requirement that didn’t exist under CDM. The support program helps you navigate this process, which varies by country and can be politically complex.

Verification and validation support to ensure your project meets the technical standards for Article 6 mechanisms. This might include funding for third-party verification, technical reviews, or independent assessments of your monitoring data.

Stakeholder engagement and consultation to meet the enhanced requirements for community involvement and benefit-sharing under the Paris Agreement. Article 6 emphasizes that carbon projects should deliver sustainable development benefits and respect human rights—you’ll need to demonstrate this.

Connection to carbon market buyers because transitioning to Article 6 compliance is only useful if you can sell the resulting credits. Some support programs include matchmaking with potential buyers or access to carbon market platforms.

The specific services you receive depend on your project type, location, and needs. A large renewable energy project with sophisticated developers will need different support than a small community-based forestry project. The programs are designed to be flexible and responsive to your situation.

Who Should Apply for This Support

This program is designed for organizations that already have CDM projects and want to keep them viable in the new carbon market landscape. You’re not starting from scratch—you’re adapting an existing project to new rules.

You’re a strong candidate if you:

• Own or manage an existing registered CDM project that’s still operational or could be reactivated
• Have a project that’s been generating CERs but facing declining demand and prices
• Are a designated national authority trying to help multiple CDM projects in your country transition
• Have a project type that’s likely to qualify under Article 6 (renewable energy, energy efficiency, waste management, sustainable forestry)
• Can demonstrate that your project delivers real, measurable emission reductions
• Are committed to meeting the enhanced transparency and sustainable development requirements of the Paris Agreement
• Have or can obtain host country government support for your project
• Need technical expertise and capacity building, not just funding

The program works especially well for:

• Renewable energy projects (wind, solar, hydro, biomass) that are still operational and generating emission reductions
• Energy efficiency projects in industry or buildings that continue to deliver savings
• Waste management projects (landfill gas capture, waste-to-energy) with long operational lifespans
• Forestry and land-use projects that can demonstrate permanence and additionality
• Projects in countries that are actively developing Article 6 frameworks and are supportive of carbon market participation
• Project developers who successfully operated under CDM but lack expertise in the new Paris Agreement mechanisms

You’re probably not a good fit if:

• You’re looking to develop a new carbon project from scratch (this is for transitioning existing CDM projects, not starting new ones)
• Your CDM project has been inactive for years and can’t be reactivated
• Your project type isn’t likely to qualify under Article 6 (some CDM methodologies haven’t been approved for Article 6)
• You’re primarily looking for cash grants rather than technical assistance
• Your host country government opposes carbon market participation or hasn’t established Article 6 frameworks
• Your project has serious issues with additionality, permanence, or environmental integrity that can’t be resolved

Understanding the CDM to Article 6 Transition

To appreciate why this support matters, you need to understand what’s changing. The CDM was established under the Kyoto Protocol to allow developed countries to invest in emission reduction projects in developing countries and receive credits (CERs) they could use toward their own emission reduction targets. At its peak, the CDM registered over 7,800 projects and issued more than 2 billion CERs.

But the CDM faced serious problems: prices for CERs collapsed after 2012, many projects had questionable additionality (they would have happened anyway), environmental integrity was sometimes weak, and sustainable development benefits were often minimal. When the Paris Agreement replaced the Kyoto Protocol, it was clear that a new approach was needed.

Article 6 of the Paris Agreement establishes two main mechanisms for international carbon cooperation:

Article 6.2 allows countries to cooperate directly and transfer “internationally transferred mitigation outcomes” (ITMOs) between each other. This is more flexible than CDM but requires bilateral agreements between countries and robust accounting to avoid double-counting.

Article 6.4 establishes a new centralized mechanism supervised by the UN, similar to CDM but with stronger rules. This is the most direct successor to CDM, and many CDM projects are trying to transition here.

The key differences from CDM include:

Stronger additionality requirements - You need to prove your project wouldn’t happen without carbon finance, and the bar is higher than under CDM.

Enhanced environmental integrity - More rigorous monitoring, reporting, and verification. No more gaming the system or inflating baselines.

Mandatory sustainable development assessment - You must demonstrate that your project delivers benefits beyond emission reductions, including social and economic benefits for local communities.

Host country authorization - Your government must explicitly authorize your project and the transfer of credits. This is a political process, not just a technical one.

Corresponding adjustments - Countries must adjust their national emission inventories when they transfer credits, to avoid double-counting. This is a new accounting requirement that some countries are still figuring out.

Transition of CDM credits - Some existing CERs might be eligible for use under the Paris Agreement, but the rules are complex and still being finalized.

Navigating this transition requires expertise that most project developers don’t have in-house. That’s what this technical assistance provides.

Application Process and What to Expect

The application process varies depending on which organization is offering the support (UNFCCC, World Bank, regional development banks, or bilateral programs), but here’s the general pattern:

Step 1: Eligibility Check - Review the specific program guidelines to confirm your project and organization are eligible. Most programs require that you have an existing registered CDM project, though some also support projects that were in the CDM pipeline but never registered.

Step 2: Expression of Interest - Submit a brief expression of interest (typically 3-5 pages) describing your CDM project, its current status, why you want to transition to Article 6, and what support you need. Include basic information about emission reductions, project type, location, and current operational status.

Step 3: Initial Assessment - The program reviews expressions of interest and conducts an initial assessment of feasibility. They’re looking for projects that have a realistic chance of successfully transitioning and that represent good use of limited support resources.

Step 4: Detailed Application - If your expression of interest is accepted, you’ll be invited to submit a detailed application. This includes comprehensive information about your project, detailed description of technical assistance needs, information about your organization and capacity, letters of support from host country government (if available), and your commitment to the transition process.

Step 5: Due Diligence - The program conducts due diligence on your organization and project, including review of CDM registration documents, verification of current project status, assessment of environmental and social safeguards, and evaluation of your organization’s capacity.

Step 6: Support Package Design - If approved, the program works with you to design a customized support package based on your specific needs. This might take 1-2 months of consultation and planning.

Step 7: Implementation - Technical assistance is delivered over 12-24 months, typically in phases tied to milestones (completing gap analysis, updating methodology, preparing documentation, obtaining national authorization, etc.).

The entire process from initial expression of interest to beginning to receive support typically takes 3-6 months. The support itself then extends over 1-2 years depending on your project’s complexity and needs.

Insider Tips for Getting Accepted

Be realistic about your project’s viability. Don’t apply if your CDM project has been defunct for years and has no realistic path to reactivation. Programs want to support projects that have a genuine chance of success, not resurrect dead projects.

Demonstrate ongoing emission reductions. If your project is still operating and generating emission reductions (even if you’re not currently issuing CERs), that’s a strong signal. Include recent monitoring data if available.

Show host country support. A letter from your designated national authority or relevant government ministry indicating support for your project’s transition significantly strengthens your application. If you don’t have this yet, at least demonstrate that you’ve initiated conversations with government.

Be specific about what support you need. Don’t just say “we need help transitioning to Article 6.” Identify specific gaps: “We need support updating our monitoring methodology, conducting stakeholder consultations, and preparing sustainable development impact assessment.” Specificity shows you understand the challenge.

Highlight sustainable development benefits. Article 6 emphasizes sustainable development more than CDM did. If your project creates jobs, improves energy access, reduces local pollution, or delivers other co-benefits, emphasize these. Projects with strong sustainable development stories are prioritized.

Address any past issues head-on. If your CDM project faced challenges—delayed monitoring reports, verification issues, stakeholder complaints—acknowledge them and explain how you’ve addressed them or will address them going forward. Hiding problems doesn’t work; they’ll come out in due diligence.

Connect your project to national climate goals. If your host country has submitted an updated Nationally Determined Contribution (NDC) under the Paris Agreement, show how your project contributes to achieving those goals. Projects aligned with national priorities get stronger government support.

Be patient with the process. These programs are dealing with complex technical and political issues. The transition from CDM to Article 6 is still being figured out at the international level. Expect some uncertainty and delays, and maintain regular communication with program staff.

Common Challenges in the Transition

Host country authorization is harder than expected. Many developing countries are still developing their Article 6 frameworks and authorization processes. Some are cautious about authorizing credit transfers because of the corresponding adjustment requirement. You may need to engage in extended discussions with government officials, provide capacity building to government staff, or wait for national policies to be finalized.

Methodology gaps. Not all CDM methodologies have been approved for Article 6.4 yet. If your project uses a methodology that hasn’t been transitioned, you might need to wait for approval, adapt to a different methodology, or pursue Article 6.2 instead.

Enhanced monitoring requirements. Article 6 requires more comprehensive and transparent monitoring than many CDM projects provided. Upgrading your monitoring systems and data collection processes can be technically challenging and expensive.

Stakeholder engagement expectations. The Paris Agreement emphasizes meaningful stakeholder participation and benefit-sharing. If your CDM project had minimal community engagement, you’ll need to significantly enhance this, which takes time and resources.

Market uncertainty. Even if you successfully transition to Article 6 compliance, the market for carbon credits is still developing. Prices are uncertain, demand is unclear, and buyers are cautious. Don’t assume that Article 6 compliance automatically means strong credit sales.

Timing and deadlines. Some support programs have tight deadlines for completing the transition. If your project faces complex technical or political challenges, you might not be able to complete the transition within the program timeline.

The technical assistance programs are designed to help you navigate these challenges, but they can’t solve all problems. Some challenges require time, political will, or resources beyond what the support package provides.

Frequently Asked Questions

Can new projects apply, or only existing CDM projects? Most programs focus on existing registered CDM projects, though some also support projects that were in the CDM pipeline but never registered. Brand new projects that were never part of CDM typically aren’t eligible—they should apply directly under Article 6 mechanisms.

What happens to our existing CERs? Some CERs issued before 2021 may be eligible for use under the Paris Agreement, subject to specific rules. The technical assistance can help you understand which of your CERs might qualify and how to use them.

Do we have to pay back the technical assistance? No, this is grant-funded support, not a loan. However, some programs may require co-financing or cost-sharing for certain services.

Can we apply if our host country hasn’t established Article 6 frameworks yet? You can apply, but your transition will be delayed until your host country establishes the necessary policies and authorization processes. The support program might include assistance to your government to help develop these frameworks.

What if our project doesn’t qualify for Article 6? The gap analysis will identify this early. If your project can’t qualify, the program might help you explore alternatives, such as voluntary carbon markets or domestic carbon pricing mechanisms, rather than Article 6.

How long does the transition take? For straightforward projects in countries with established Article 6 frameworks, 12-18 months. For complex projects or countries still developing frameworks, 2-3 years or more.

Can we get support for multiple CDM projects? Yes, if you manage a portfolio of CDM projects, you can often apply for support covering multiple projects, which may be more efficient than separate applications for each project.

What happens after the support period ends? You should have Article 6-compliant project documentation, national authorization, and be ready to participate in carbon markets. Ongoing project operation and credit issuance are your responsibility.

How to Apply

Start by identifying which support program is most relevant for your project. Several organizations offer CDM transition support:

The UNFCCC Secretariat provides information and guidance through cdm.unfccc.int. Check their website for announcements about transition support programs.

The World Bank’s Carbon Markets team offers support through various initiatives. Visit their climate finance website for current programs.

Regional development banks (Asian Development Bank, African Development Bank, Inter-American Development Bank) often have carbon market support programs for projects in their regions.

Bilateral climate finance programs from countries like Germany, Switzerland, Sweden, and others sometimes offer CDM transition support.

Review the specific eligibility criteria and application requirements for each program. They vary in focus (some prioritize certain project types or regions), support offerings, and timelines.

Prepare your expression of interest or application carefully. Include all requested information, be honest about challenges, and clearly articulate what support you need and why.

Engage with your host country designated national authority early. Their support is essential for a successful transition, so don’t wait until you’re deep in the process to involve them.

For questions about specific programs, contact the program administrators directly. They’re generally willing to answer questions about eligibility and application requirements.

The transition from CDM to Article 6 is complex, but with the right support, many projects can successfully make the shift and continue generating emission reductions and carbon credits in the new Paris Agreement era. If you have a viable CDM project, this technical assistance can be the key to keeping it alive and relevant.