Global carbon market launch: COP29 approves key Paris Agreement provisions
1min read On November 11, the fourth article of Article 6 of the Paris Agreement, a highly anticipated provision, was approved at the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29), marking the official establishment of the global carbon market. The provision aims to reduce greenhouse gas emissions through international cooperation and support sustainable development. The newly established Article 6 supervisory body (SBM) will oversee the carbon market to ensure that projects are approved by the corresponding countries and issued carbon credits recognized by the United Nations.The decision at COP29 is seen as a significant step towards achieving national contributions to climate change (NDCs), which is expected to provide emission reduction support for high-emission economies and promote funding flows to developing countries. Mukhtar Babayev, the President of COP29, noted that the global carbon market is expected to reduce the cost of implementing NDCs by up to US$250 billion annually.Despite the launch of the global carbon market, controversy also accompanied it. Environmental organizations and legal experts expressed concerns about the rapid decision-making process, which they argued could limit discussions and debates and potentially harm the environment and human rights. The follow-up negotiations at COP29 will continue to refine the guidance to address disagreements among countries on carbon trading standards and actual emission reduction contributions. The approval is still widely regarded as a significant milestone for the Paris Agreement and global climate action.