COP29: Carbon credit system to support developing nations Historic success

At COP29, held in Baku, Azerbaijan, negotiators achieved a landmark consensus on the full implementation of Article 6 of the Paris Agreement, a breakthrough following nearly a decade of stalled talks.

Prolonged discussions on this crucial article had hindered progress in mobilizing additional resources to combat climate change, Caliber.Az reports, citing local media.

While high hopes were placed on COP28 in Dubai to finalize subsection 6.4, an agreement proved elusive. However, at COP29, parties reached a comprehensive accord on sections 6.2, 6.4, and 6.8, paving the way for the establishment of a regulated carbon market under the full supervision of the UN Framework Convention on Climate Change (UNFCCC).

Key Provisions of Article 6

Article 6 facilitates international cooperation to reduce emissions. It mandates countries to report their carbon reduction measures, including sequestration efforts such as reforestation, within their Nationally Determined Contributions (NDCs).

Carbon Market Mechanisms: Article 6.4

Subsection 6.4 focuses on creating transparent and reliable carbon markets, enabling nations to trade carbon credits under UNFCCC oversight. Previously, such transactions were conducted bilaterally. Moving forward, countries will adhere to a centralized framework where nations emitting less than their annual carbon allowance can sell surplus quotas to those exceeding their limits.

For instance, if the UN sets Azerbaijan’s annual CO₂ emissions cap at 500 tons and the country, leveraging its green energy initiatives, emits only 400 tons, the remaining 100 tons can be sold to other nations. This mechanism not only incentivizes emission reductions but also provides financial support to developing and economically disadvantaged countries often most affected by climate change. All transactions will be strictly monitored by the UN to ensure transparency and accountability.

Non-Market Approaches: Article 6.8

Subsection 6.8 emphasizes collaborative efforts beyond market mechanisms, targeting emission reductions, adaptation measures, financing, and technology transfer. These initiatives include expanding forested areas, deploying innovative technologies, and supporting climate resilience projects, particularly in vulnerable regions.

A Milestone for Global Climate Action

This agreement represents a significant step forward in aligning global efforts to address the climate crisis. By enabling countries to integrate their NDCs with regulated international mechanisms, Article 6 establishes a robust framework for achieving collective climate goals.

With this breakthrough at COP29, the global community has taken a decisive step toward mitigating climate change and fostering international cooperation in the pursuit of a sustainable future.

As part of COP29, Baku hosted 70,000 and 80,000 international guests, including leaders from governments, businesses, and civil society, all working together to find tangible solutions to the record-high global temperatures and extreme weather events that are affecting people worldwide.

By Khagan Isayev