COP29's Pioneering Decision on Global Carbon Market Sets New Standards

At COP29, a major decision adopted Article 6.4 standards, establishing a centralized UN-managed carbon market to support emissions reduction. This breakthrough follows long-standing deadlock, though concerns about expedited processes persist. Experts urge ongoing transparency and improvements as talks progress on further standards and bilateral agreements under Article 6.2.

In a landmark decision, COP29 has officially adopted new standards under Article 6.4 of the Paris Agreement, marking a significant step towards a global carbon market. This decision breaks years of deadlock and aims to support international efforts to cut carbon emissions.

Article 6 provides two pathways for carbon trading: Article 6.2 for bilateral agreements and Article 6.4 for a centralized UN-managed system. The newly adopted standards focus on carbon removal projects, addressing long-standing transparency and quality concerns.

Despite this advancement, questions remain about the adoption process's speed and its impact on governance. Continued negotiation will focus on unresolved issues like transparency in bilateral trades under Article 6.2.

(With inputs from agencies.)