The COP29 Presidency announced the conclusion of a decade-long negotiation on high-integrity carbon markets under Article 6 of the Paris Agreement. This achievement, a top priority for the Presidency, was made possible through intensive dual-track technical and political negotiations, which resolved years of stalemate and finalized the last outstanding item of the Paris Agreement.
Article 6 was designed to establish trusted and transparent carbon markets, enabling countries to collaborate on achieving their climate goals. This cross-border cooperation is anticipated to reduce the cost of implementing national climate plans (NDCs) by up to $250 billion annually.
The COP29 Presidency urged Parties to reinvest these savings into more ambitious climate efforts. The upcoming NDCs, due in February, are seen as critical to keeping the global temperature rise within 1.5 degrees Celsius. The milestone achieved at COP29 has come just in time to inspire greater commitments from countries.
This breakthrough was achieved after years of delays, despite progress at the Glasgow and Sharm El-Sheikh COPs, where foundational rules and procedures for carbon markets were established. Prior to COP29, unresolved issues had stalled progress, delaying the full functioning of international climate collaboration pathways.
The COP29 Presidency adopted a focused strategy to break multilateral stalemates by fostering engagement between Parties and bridging technical and political discussions. This approach led to the early adoption of Article 6.4 standards on the first day of COP29, building momentum towards the agreement.
The guidelines aim to maintain practicality and inclusivity, respect human rights, and support sustainable development, allowing countries and developers to collaborate under the Paris Agreement confidently. While these decisions represent a significant milestone, Parties acknowledged that the Article 6 rulebook will continue to evolve as experience informs further refinements.