Voluntary carbon market
Activities certified under an independent standard, with an Article 6 attribute or without one.
Not every carbon activity in Malawi runs under Article 6. Many are certified under independent international standards and bought by companies making their own climate claims. The Framework treats these as voluntary market activities, and divides them by a single question: does the activity seek a corresponding adjustment?
With an Article 6 attribute, or without.
An Article 6 attribute means Malawi adjusts its own accounts for the tonne. That is a sovereign commitment, so it requires authorization.
Seeking an Article 6 attribute
- Letter of Authorization
- Required — requested using Template G
- Recognised standards
- Gold Standard and VERRA
- Eligibility assessment
- By the Environmental Affairs Department, on the Article 6.2 criteria
- Listing fee
- USD 7,500
- Buffer retention
- Applies, at the rate set in the authorization
- Reported to the UNFCCC
- Yes
Not seeking an attribute
- Letter of Authorization
- Not required
- Recognised standards
- As the standard permits
- Eligibility assessment
- Not applicable
- Listing fee
- Not applicable
- Buffer retention
- Not applicable
- Reported to the UNFCCC
- No
The Government has reserved the right to adopt requirements for participants to notify the Ministry and the Department about voluntary activities that do not require a corresponding adjustment, and to register them on the national registry. Any such change would come through a formal revision of the Framework. Developers are encouraged to engage with the Office in the meantime.
Voluntary activities seeking an Article 6 attribute
The route for a voluntary market activity registered with Gold Standard or VERRA that seeks a Letter of Authorization so its credits carry an Article 6 attribute and a corresponding adjustment.
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01 Participant-led
Register on the national registry
The participant opens an account on the Malawi Carbon Registry System so the activity is recorded and trackable, even though the units themselves are held by the standard.
Produces- Registry account and MAP-ID
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02 On submission
Confirm eligibility and methodology
The Department assesses the activity against the same eligibility criteria used for Article 6.2. Where the standard’s methodology differs from a methodology approved under the Framework, the Framework prevails.
Produces- Eligibility assessment
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03 Participant-led
Request a Letter of Authorization
The participant requests authorization using Template G and pays the listing fee of USD 7,500. Only activities registered with Gold Standard or VERRA are currently recognised for an Article 6 attribute.
Produces- Template G — request for authorization
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04 On a positive review
Authorization
Where the request succeeds, a Letter of Authorization is granted and the credits may carry an Article 6 attribute.
Produces- Letter of Authorization
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05 Per crediting period
Issuance, transfer and corresponding adjustment
Units are issued and held in the standard’s own registry. The buffer percentage is retained, and Malawi applies a corresponding adjustment for units used towards the purposes named in the Letter of Authorization.
Produces- Authorized units carrying an Article 6 attribute
- Corresponding adjustment applied
Where a standard’s methodology and a methodology approved under the Framework disagree, the Framework’s takes precedence. Check your methodology against the approved list before you build a business case on it.
Questions about the voluntary market.
Standards
Not for an Article 6 attribute today. Those two are the standards the Framework currently recognises as granting an Article 6 attribute to voluntary credits. The Ministry may recognise others in future, which would require a formal amendment to the Framework.
Authorization
Yes. Register on the Malawi Carbon Registry System, then request authorization using Template G. The activity is assessed against the same eligibility criteria as an Article 6.2 activity, and the negative list applies equally.
Registry
In the standard’s own registry, not on Malawi’s. Issuance, transfer and cancellation all happen there. Malawi’s role is to authorize, to retain the buffer share, and to apply the corresponding adjustment for the purposes named in the Letter of Authorization.
Not sure which side of the line you are on?
If a buyer has asked you for a corresponding adjustment, you need authorization. If you are unsure, ask the Office before you commit.