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- $250 Billion Annual Savings: The operationalization of Article 6 enables trusted carbon markets, reducing the cost of implementing national climate plans (NDCs) by up to $250 billion annually.
- Catalyst for Climate Ambition: Parties are encouraged to reinvest these savings to enhance their next NDCs, pivotal for keeping the 1.5-degree target within reach.
- Breakthrough in Multilateral Negotiations: COP29 resolved a decade-long stalemate on carbon market integrity, finalizing the last component of the Paris Agreement.
The COP29 Presidency announced a major milestone in climate diplomacy: the full operationalization of Article 6 of the Paris Agreement, unlocking international carbon markets after years of complex negotiations. The Presidency’s dual-track strategy bridged technical and political divides, ending a decade-long wait for trusted, transparent carbon markets that will drive global cooperation in achieving climate goals.
Related Article: 5 Key Takeaways from COP29: Progress, Challenges, and What Lies Ahead
“This is a critical tool for keeping 1.5 degrees in reach,” said COP29 President Mukhtar Babayev. “Climate change is a transnational challenge, and Article 6 will enable transnational solutions. Because the atmosphere does not care where emissions savings are made.”
Breaking the Stalemate
The negotiations prior to COP29 were stalled, delaying the activation of mechanisms vital for international collaboration. COP29’s approach combined early adoption of Article 6.4 standards and fostering consensus among Parties, culminating in today’s unanimous decisions. These new guidelines ensure environmental integrity, transparency, and inclusivity in carbon markets.
“Today, we unlocked one of the most complex challenges in climate diplomacy,” said COP29 Lead Negotiator Yalchin Rafiyev. “Article 6 means coal plants decommissioned, wind farms built, and forests planted—a wave of investment in the developing world.”
Future Climate Ambition
With Article 6 now operational, Parties can use savings from reduced implementation costs to invest in greater climate ambition. This comes just in time for the next generation of NDCs due in February, described as “make-or-break” for achieving global climate targets.
The guidelines adopted today will evolve as countries and project developers gain experience, ensuring practical, inclusive solutions that respect human rights and support sustainable development.
“This consensus is the result of nearly a decade of tireless work,” the COP29 Presidency noted, “marking a pivotal step toward robust, high-quality carbon markets that unleash global climate investment.”
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