Governance and institutions
The five bodies that authorize, oversee and advise on Malawi’s carbon market engagement.
Article 6 only works where a country has an efficient and accountable domestic institutional setup behind it — institutions holding the legal and administrative authority to implement and exchange mitigation outcomes transparently, on behalf of the government. Malawi has designed that arrangement around five bodies: the Ministry of Natural Resources and Climate Change, the Environmental Affairs Department, the National Steering Committee on Climate Change, the Malawi Carbon Markets Initiative and the Mitigation Expert Working Group. Between them they hold the mandate to decide on approvals and authorization, accreditation, methodologies, registry and tracking, and reporting of eligible mitigation activities.
Five institutions, five mandates.
One authorizes, one operates, one directs policy, one advises on the market and one supplies the technical judgement.
Ministry of Natural Resources and Climate Change
Holds the authority to recognize the eligibility of mitigation activities, approve and authorize mitigation outcomes, and ensure compliance with international standards. Through the Environmental Affairs Department it authorizes activities under Article 6.2, issues Letters of Authorization, supervises bilateral engagements with prospective participating Parties, and receives grievance petitions for resolution.
Environmental Affairs Department
Malawi’s Designated National Authority, responsible for Article 6 day-to-day operations. It manages the planning and implementation of Article 6.2 and the transfer of mitigation outcomes, maintains the list of eligible methodologies and standards, reviews trading and funding contracts, and creates and operates the Article 6 registry. It briefs the Ministry regularly on transactions carried out.
National Steering Committee on Climate Change
Provides policy direction, oversight and guidance on all carbon market matters in the country. It supports the Ministry and the Department on high-level and strategic decisions, oversees the Department’s activities against this Framework, and assesses what Malawi’s Article 6 engagement means for its NDC and for co-benefits such as poverty reduction and job creation.
Malawi Carbon Markets Initiative
Provides advisory services to the Designated National Authority on coordinating, monitoring and tracking the state of carbon markets in the country. It meets the Authority regularly to assess the status of Malawi’s Article 6 activities, and evaluates investment trends and sectoral opportunities across the NDC sectors.
Mitigation Expert Working Group
The Article 6 technical advisory unit, working through three groups covering mitigation, adaptation and finance. It gives the Ministry technical approval of activity idea notes and design documents, technical approval of eligible methodologies and international carbon standards, and technical recommendations for authorizing activities under Article 6.2. Its experts are drawn from MDAs, academia, the private sector and civil society.
The five bodies, side by side.
What each body is there to do, and how often it sits.
| Body | Role | Meets |
|---|---|---|
| MNRCC | Authorization, approvals, rulemaking and operations | — |
| EAD | Designated National Authority — Article 6 operations and the registry | Day to day |
| NSCCC | Policy coordination and oversight | Twice a calendar year |
| MCMI | Article 6 activities oversight and investment advisory | Twice a calendar year |
| MEWG | Article 6 technical advisory unit | Monthly |
The same bodies, arranged differently.
Article 6.2 is bilateral and run from Malawi; Article 6.4 is centrally supervised, and the Authority speaks to the UNFCCC. The institutions are the same — what changes is who they answer to.
Under Article 6.2
- Authorizes
- The MNRCC, through the EAD, as the entity authorizing eligible mitigation activities
- Counterparty
- The bilateral partner — a prospective Article 6.2 participating Party
- Registered on
- Malawi’s Carbon Registry System, created and operated by the EAD
- Instrument
- A Letter of Authorization, issued after a positive review of the validation report on the design document
- Corresponding adjustment
- Performed by the MNRCC through the EAD, with reporting to the UNFCCC
- Technical advice
- The MEWG recommends activities for authorization; the NSCCC oversees
Under Article 6.4
- Authorizes
- Malawi’s DNA — the MNRCC through the EAD — granting approvals and authorizations to activity participants
- Counterparty
- The UNFCCC Supervisory Body, to which the MNRCC is the Designated National Authority
- Registered on
- The mechanism registry held by the UNFCCC Supervisory Body
- Instrument
- An Approval Support Statement, then a Letter of Authorization communicated to the Supervisory Body
- Corresponding adjustment
- Applied by the DNA to all authorized A6.4ERs on first transfer
- Technical advice
- The MEWG, NSCCC and MCMI review and recommend before registration is requested
The Ministry of Natural Resources and Climate Change, through the Environmental Affairs Department, is Malawi’s National Focal Point for all climate change issues and its Designated National Authority for Article 6 of the Paris Agreement. It is not a new arrangement: the same Ministry and Department have been the Designated National Authority for the Clean Development Mechanism under the Kyoto Protocol since 2007.
Not sure which body you need?
Approvals, authorizations, the registry and grievances all run through the Environmental Affairs Department. Write to the Office and your question will reach the right desk.