Letter of Authorization and Acknowledgement

Overview & Synopsis

This Letter of Authorization provides a common template to be used with schedules that may be specified by each Member Country. This template is intended to simplify the process for authorization, reduce transaction costs, and allow flexibility for bilateral arrangements. It is intended to be used for all authorizations to be granted under Article 6 of the Paris Agreement (6.2 and 6.4). It includes an illustrative schedule of terms that is most likely to maximize investment and value for the Member Country. The Guidance document allows each Member Country to actively choose whether the project is intended to be authorized (subject to corresponding adjustments and a Letter of Authorization) or outside the scope of authorization (ideally subject to a Letter of Acknowledgement in order to increase certainty and corresponding investment value). This version incorporates changes related to decisions made at COP29.