On the first day of the UN Climate Change Conference (COP29) in Baku, Azerbaijan, global leaders achieved an early milestone by reaching consensus on standards for creating carbon credits under Article 6.4 of the Paris Agreement.
This decision, welcomed by COP29 President Mukhtar Babayev, is expected to boost demand for carbon credits and ensure the integrity of the international carbon market under UN supervision.
Despite this progress, COP29’s opening plenary was delayed due to a contentious agenda dispute between developed and developing nations.
Tensions arose over the UAE-hosted dialogue on implementing the global stocktake outcomes, with European countries urging that the outcomes be incorporated across all climate work programmes and bodies, while developing nations argued that the dialogue should focus solely on climate finance.
The European Union (EU) maintained that tracking implementation on issues like mitigation, finance, and adaptation should be a priority.
President Babayev hailed the consensus on Article 6 as a “game-changing tool” for directing resources to the developing world.
“Following years of stalemate, the breakthroughs in Baku have now begun. But there is much more to deliver,” he stated, emphasizing that the full operationalization of Article 6 is a top priority at COP29.
According to the COP29 Presidency, finalizing Article 6 negotiations could reduce the cost of implementing national climate plans by $250 billion per year by enabling cross-border climate cooperation.
To further support climate action, President Babayev urged countries to submit 1.5°C-aligned Nationally Determined Contributions (NDCs) to reduce emissions ahead of next year’s deadline, file National Adaptation Plans by 2025, and deliver their first Biennial Transparency Reports (BTR) this year.
The successful adoption of carbon credit standards establishes momentum for the coming weeks of negotiations.
With COP29 viewed as a critical opportunity for leaders to demonstrate commitment to climate action, Babayev stressed the need for enhanced ambition and cooperative action during the conference, setting clear expectations for countries to accelerate progress.
By Dare Akogun
