Global Carbon Credit Market Rules Finalized at COP29

At COP29, countries agreed on rules for a global carbon credit market to help reduce greenhouse gas emissions. The deal sets up a U.N. trading system and protocols for bilateral trades, although differences remain over oversight and registry functions.

Countries reached a pivotal agreement at the COP29 climate conference on rules governing a global market for carbon credits, which supporters say will channel billions into projects combating global warming.

The deal, finalized after a decade of negotiation, addresses the credibility needed to ensure carbon credits lead to genuine emission reductions. These credits, generated by initiatives like forestry in poorer nations, can be bought by countries and companies striving for climate goals.

Negotiators spent much of the conference in Azerbaijan detailing a bilateral trade system and registry tracking processes. Key voices included the EU advocating for stringent oversight and the U.S. pushing for transaction autonomy. The compromise allows registry services for countries without independent ledgers while not making a U.N. endorsement mandatory.

(With inputs from agencies.)