BAKU, November 24 – The COP29 Presidency announced a landmark agreement on high-integrity carbon markets under Article 6 of the Paris Agreement, ending a decade-long impasse in multilateral negotiations. This breakthrough provides a critical framework for countries and companies to collaborate on achieving their climate goals, with the potential to save up to $250 billion annually in implementing national climate plans (NDCs).
The resolution of Article 6 negotiations marks the finalisation of the Paris Agreement’s key components. The decision introduces transparent and trusted carbon markets to facilitate cross-border cooperation on emissions reductions. By cutting costs significantly, these markets allow nations to reinvest savings into more ambitious climate actions, crucial for maintaining the global target of limiting temperature rise to 1.5°C.
A Critical Climate Tool Unlocked
COP29 President Mukhtar Babayev described the agreement as a historic step. “We have ended a decade-long wait and unlocked a critical tool for keeping 1.5 degrees in reach,” Babayev said. “Climate change is a transnational challenge, and Article 6 enables transnational solutions. The atmosphere does not care where emissions savings are made.”
Lead negotiator Yalchin Rafiyev highlighted the real-world impact of the deal. “Today, we resolved one of the most complex challenges in climate diplomacy. Article 6 means coal plants decommissioned, wind farms built, and forests planted. It signifies a new wave of investment in the developing world,” he said.
Breaking Through the Deadlock
While previous COPs in Glasgow and Sharm El-Sheikh made progress on rules for carbon markets, crucial details remained unresolved, stalling implementation. The COP29 Presidency adopted a dual-track approach, bridging technical and political negotiations to build consensus. This culminated in early adoption of Article 6.4 standards on the first day of COP29, creating momentum for the final agreement.
The new guidelines ensure environmental integrity and transparency, mandating real, additional, verified, and measurable emissions reductions. They also aim to respect human rights and support sustainable development, providing confidence for nations and project developers.
A Foundation for Future Climate Action
The agreement is expected to bolster the next generation of NDCs, due in February 2025, which many experts see as critical to maintaining the 1.5°C target. The COP29 Presidency called on all parties to use the financial savings enabled by Article 6 to scale up their climate ambitions.
“This is not the end but a starting point,” said Babayev. “The Article 6 rulebook will evolve as nations learn from its implementation, continually enhancing its effectiveness.”
The COP29 Presidency expressed gratitude to the countless individuals and organisations whose efforts over the past decade paved the way for this milestone. With the framework now in place, the focus shifts to driving investments and ensuring that carbon markets deliver tangible results for the planet.