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Context:

Article 6 of the Paris Agreement was adopted at the 29th Conference of Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) in Baku, Azerbaijan.

COP29 conference Baku, Azerbaijan

Following nine years of negotiations, COP29 successfully adopted Article 6 of the Paris Agreement (2015), which allows countries to cooperate voluntarily to implement their Nationally Determined Contributions (NDCs) through carbon markets.

What were the key topics of discussion during the COP29?

Setting Climate Finance Goals

Developing countries demanded at least $1 trillion per year between 2025 and 2035 to help meet emission targets known as the New Collective Quantified Goal (NCQG).

Developing countries, including China, India, and the Group of 77, have demanded that developed countries bear the majority of climate finance, which includes mitigation, adaptation, and compensation for climate damage. They also advocated for contributions based on historical emissions and per capita GDP.

Developed countries, particularly the European Union, have set a target of $1.3 trillion per year by 2035. This target would be met through "various sources," such as public, private, bilateral, and multilateral contributions. However, there was disagreement about the proportion of grants and loans, with developed countries opposing a predominantly grant-based model.

Addressing Carbon Emissions

Scientific assessments predicted a 0.8% increase in emissions in 2023, despite global emissions reduction efforts falling short of expectations. Developing countries highlighted the need for developed countries to shoulder more responsibility for climate finance due to their historical emissions.

Carbon market agreement

The carbon market agreement at COP29 established a supervised UN carbon market aligned with the Article 6 of the Paris Agreement (signed during COP 21 in 2015) to allow countries to trade carbon credits to meet emission targets.

Article 6.2 permits bilateral agreements for carbon trading, while Article 6.4 establishes a global carbon market.

Concerns regarding the adoption of Article 6 at COP29

Experts argue that the framework lacks transparency, accountability, and monitoring, and that there are no serious consequences for reporting inconsistencies or failure to follow the framework.

Participating countries are not required to disclose how they avoid double counting or quantify mitigation outcomes, which could result in inaccurate reporting and ineffective emission reductions.

The rules do not adequately prevent the trade of low-quality carbon credits, which has the potential to compromise the carbon markets' environmental integrity.

Way Forward

The COP29 conference has made progress in carbon markets mechanism, but significant gaps remain in climate financing, therefore bridging the gap between developed and developing countries is essential for meeting the climate goals and ensuring long term sustainable development.

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Source:

Down to Earth