It’s official. The international community has agreed to establish an international carbon credit market, with negotiators agreeing to establish a UN-operated market that provides standardised methodologies for credits between countries and across trading zones. Wood Central understands that the new market could come into effect as soon as next year.<\/p>\n\n\n\n
In a landmark decision agreed to during the first day of COP29 talks, leaders have adopted the new operational standards for a mechanism of the Paris Agreement under Article 6, setting the stage for a global carbon market.<\/p>\n\n\n\n
This adoption of Article 6.4, achieved during the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA), sets the stage for operationalising Article 6, which has faced years of deadlock.<\/p>\n\n\n\n
Wood Central understands that Article 6 facilitates international collaboration to lower carbon emissions. It offers two pathways for countries and companies to trade carbon offsets, supporting the achievement of emission reduction targets set in their climate action plans or nationally determined contributions (NDCs).<\/p>\n\n\n\n
The first option, known as Article 6.2, allows two countries to establish a bilateral carbon trading agreement under their own terms. The second, Article 6.4, seeks to develop a centralised, UN-managed system to enable both countries and companies to offset and trade carbon emissions.<\/p>\n\n\n\n
Speaking to Reuters<\/a>, Juan Carlos Arredondo Brun, a former climate negotiator for Mexico who now works for carbon market data and souring company Abatable, said the endorsement “will bring us closer to operationalising the carbon market before any single party may decide to move away from the Paris Agreement”.<\/p>\n\n\n\n Carbon credits theoretically allow countries or companies to pay for projects anywhere on the planet that reduce CO2 emissions or remove it from the atmosphere and use credits generated by those projects to offset their emissions.<\/p>\n\n\n\n It comes weeks<\/a> after bureaucrats agreed on a series of crucial standards required to operationalise a new crediting mechanism ahead of COP29.<\/p>\n\n\n\n During the five-day meeting, discussions focused on two key standards:<\/p>\n\n\n\n “These new standards are a key element in our effort to deliver a crediting mechanism that is fit for the future,” said Maria AlJishi, Chair of the Article 6.4 Supervisory Body – responsible for establishing the carbon mechanism. “As the only crediting mechanism directly responsible to Parties and mandated by the Paris Agreement, we are committed to ensuring it balances the needs of achieving the Paris goals, supporting market players, and addressing host country interests.”<\/p>\n\n\n\n The new talks come after the COP28 president presented a \u201ctake it or leave it\u201d proposal to climate negotiators that was deemed unacceptable and roundly rejected. The collapse left bilateral deals in limbo \u2013 with several countries striking deals to buy carbon credits from others to meet their emissions targets.<\/p>\n\n\n\n The discussions were a crucial focus of the Dubai Summit. They followed COP26, where negotiators in Glasgow reached an\u00a0agreement<\/em><\/a>\u00a0to regulate the trading of carbon credits in schemes first envisioned in Article 6 of the 2015 Paris Agreement. <\/p>\n\n\n\nCOP29 is pushing for a new approach to Article 6.4 discissions<\/h6>\n\n\n\n
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Why Carbon Credit Talks Collapsed in Dubai <\/h6>\n\n\n\n