At COP29 in Baku, a significant breakthrough was achieved in climate diplomacy with the conclusion of negotiations on Article 6 of the Paris Agreement, which had been pending for a decade. This milestone establishes the framework for high-integrity carbon markets, enabling countries to collaborate across borders to meet their climate goals. The agreement is expected to reduce the cost of implementing national climate plans (NDCs) by up to $250 billion annually, with COP29 President Mukhtar Babayev emphasizing "We have ended a decade-long wait and unlocked a critical tool for keeping 1.5 degrees in reach. Climate change is a transnational challenge and Article 6 will enable transnational solutions. Because the atmosphere does not care where emissions savings are made".
The newly adopted guidelines ensure environmental integrity, transparency, and robustness in carbon markets through verified emission reductions while promoting human rights and sustainable development. The COP29 Presidency's dual-track approach of technical and political negotiations was instrumental in breaking through years of stalemate, with the final framework allowing for practical implementation while remaining adaptable as countries gain experience. This achievement comes at a crucial time, just before the February deadline for the next generation of NDCs, providing countries with a clear pathway for enhancing their climate ambitions and fostering international collaboration in addressing climate change.
