Is the Global Carbon Market Finally Here? COP29 Approves Article 6.4
- Muhammad Ahmad
- Nov 12, 2024
- 2 min read
The UN launches a global carbon market framework at COP29, promising to reshape international emissions trading
COP29 sets the stage for a unified carbon market under the new Article 6.4 framework
COP29 marked a breakthrough as UN members agreed on rules for a global carbon market under Article 6.4.
The new system enables countries and companies to trade carbon credits internationally, potentially lowering emissions costs.
This market promises financial support for lower-income nations to adopt sustainable practices.
At the COP29 UN Climate Change Conference in Azerbaijan, representatives of 196 countries finalized the framework for a global carbon market by approving Article 6.4 of the Paris Agreement. This decision establishes rules for the international trading of carbon credits, allowing nations and companies that exceed their emissions reduction targets to sell credits to those struggling to meet their climate commitments. The market is designed to operate transparently, with standardized protocols for monitoring, reporting, and verifying emissions reductions.
This framework aims to make emissions reductions more cost-effective by enabling the trade of verified carbon credits. Under the Article 6.4 system, projects like renewable energy installations and reforestation initiatives can generate credits, which buyers can purchase to offset their emissions. Supporters argue that this approach will boost investment in climate-positive projects globally, accelerate progress toward the Paris Agreement's goals, and ensure developing countries have access to funding for sustainable initiatives.
Technical Focus
The Article 6.4 framework creates a structured, UN-backed global carbon market where carbon credits represent verified emissions reductions. Under this system, participating countries can generate revenue by selling credits from projects that exceed their carbon reduction targets. This market is projected to be worth billions, providing significant funding for clean energy, forestry, and sustainable agriculture projects. Analysts note that the framework prioritizes transparency, with measures like third-party verification and a centralized registry designed to prevent double-counting and ensure the credibility of each credit.
With Article 6.4 in place, UN representatives expressed optimism about its impact on climate goals. “This framework is a critical milestone that enables nations to collaborate on emissions reductions while advancing economic and social benefits globally,” said a spokesperson at COP29. Carbon trading is expected to become a key tool for private and public sectors, providing a pathway for countries to meet their commitments affordably and at scale.
As COP29’s endorsement of Article 6.4 signals a turning point in international climate policy, the world watches closely. While advocates view the framework as essential for uniting global efforts, critics caution that oversight will be key to ensuring transparency and equity across markets.