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Sub-National Carbon Market Programme

Darkhan Carbon Market Programme (D-CAMP)

A first-of-its-kind sub-national climate action programme in Mongolia designed to build a pipeline of bankable climate mitigation projects within the scope of the voluntary carbon market and Article 6 of the Paris Agreement.

Sub-National Action Designed for Darkhan-Uul Province as a provincial climate action and investment platform.
Carbon Market Scope Aligned with VCM pathways, Article 6 thinking, and international carbon standards.
Bankable Pipeline Focused on project origination, eligibility screening, financial modeling, and readiness documents.
Institutional Support Combines mitigation action facility design with technical assistance and policy dialogue.
Project Overview

Building a provincial carbon market programme for Darkhan.

The Darkhan Carbon Market Programme (D-CAMP) is conceived as a structured provincial platform to develop a pipeline of climate change investment projects within the scope of the voluntary carbon market and Article 6 of the Paris Agreement. It is designed around the need for sub-national climate action, local mitigation project origination, and innovative climate finance at the municipal and regional level.

The programme responds to a major implementation gap: cities, municipalities, and industrial regions are central to emissions reduction, yet often face skill, knowledge, policy, and financing barriers when it comes to developing bankable green and climate investments. D-CAMP seeks to close that gap through a structured program architecture in Darkhan-Uul Province, Mongolia.

Project Summary

Key programme profile

Programme Name Darkhan Carbon Market Programme (D-CAMP)
Location Darkhan-Uul Province, Mongolia
Primary Scope Developing a pipeline of climate change investment projects under VCM and Article 6 pathways
Programme Model Sub-national mitigation action facility plus technical assistance support
Institutional Context Darkhan-Uul Province Municipality, FRIENDSHIP Project, EU-DIEH, and partner institutions
Strategic Relevance Localization of climate ambition, municipal mitigation action, and climate finance readiness
Core Objective Originate, screen, and prepare bankable mitigation projects and technical assistance modalities
Programme Components

How D-CAMP is structured

Darkhan Mitigation Action Facility (D-MAF)

Preparatory work to create an enabling environment for eligible climate investments and local mitigation project pipelines.

Eligibility and sector definition

Identification of priority sectors and eligibility criteria for carbon market-aligned projects in Darkhan.

Portfolio screening

Evaluation and shortlisting of projects from municipalities, startups, SMEs, and corporations for further development.

Technical assistance

Capacity building, readiness documentation, feasibility studies, and policy dialogue support for selected mitigation projects.

Technical Workflow

Stepwise approach used in the programme

01

Understand & Analyse

Review the policy landscape, climate finance context, institutional readiness, and existing project potential in Mongolia and Darkhan.

02

Evaluate & Assess

Define priority sectors, establish eligibility criteria, assess capacity gaps, and screen portfolios for carbon market readiness.

03

Design & Launch

Design technical assistance, prepare feasibility and readiness documents, and shape bankable climate investment pathways.

Detailed Narrative

Why D-CAMP matters

Carbon pricing and carbon market systems have proven useful at national and international scales, but municipal and provincial-level market-making remains underdeveloped in many regions. D-CAMP is important because it attempts to translate that logic into a practical sub-national programme, connecting local climate mitigation opportunities with investment readiness and policy support.

The programme also responds to a deeper structural issue: municipalities and regions often struggle to originate climate projects, define eligibility, structure finance, and prepare documentation that meets investor, donor, or carbon-standard expectations. D-CAMP addresses this by combining a mitigation action facility with technical assistance that supports feasibility, methodology selection, baseline thinking, additionality, emission reduction estimation, MRV direction, and stakeholder consultation.

In that sense, D-CAMP is not only a carbon market proposal. It is a provincial climate action platform, a policy support mechanism, and a project preparation model intended to localize national climate ambition and accelerate practical mitigation action in Mongolia.

Expected Outputs

Programme deliverables and outcomes

Inception report

Summary of Mongolia’s green financial system, priority actions, compatibility with Paris goals, and origination pathways for Darkhan.

Consultation and feasibility process

Stakeholder consultations in Mongolia, Europe, and Asia with a focus on mitigation action portfolio development.

Final report

Feasibility of the mitigation action facility, technical assistance needs, project documentation, financial modeling, and project management modalities.

Terms of reference for TA

Suggested technical assistance structure for Article 6 and voluntary market-related implementation support.