Agreement on Detailed Guidelines for the 'International Carbon Emissions Market' After 10 Years... "250 Billion Dollar Savings"
COP29 First Day, $6.4 Trillion Paris Agreement Reached
Path Opened for International Emissions Trading Market
At the United Nations Framework Convention on Climate Change Conference of the Parties (COP29), an agreement was reached on detailed guidelines for the carbon emissions trading market.
According to the official COP29 Azerbaijan EX account, on the opening day, the 11th (local time), over 200 countries participating in the conference agreed on Article 6.4 of the Paris Agreement. Article 6.4 pertains to regulations on the international emissions trading market, aiming to establish a market system supervised by the UN.
The COP29 presidency stated through their account, "The full implementation of Article 6 is a key goal of the COP29 presidency," adding, "This is an important step toward achieving that goal." They emphasized, "This will help promote climate action and allocate resources to developing countries."
Regulations for greenhouse gas reduction achievements between countries were already established through the 2015 Paris Climate Change Agreement (Paris Agreement). However, detailed guidelines had not been finalized for nearly a decade, effectively preventing implementation. Although a recommendation for agreement was submitted at COP28 held last year in the United Arab Emirates (UAE), adoption failed due to significant disagreements among countries.
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With this agreement, a vast market allowing countries to trade emission credits is expected to be created. For example, if a country fails to meet its Nationally Determined Contributions (NDC) for greenhouse gas reduction, it can purchase emission credits from countries that have succeeded in reducing emissions. Mukhtar Babayev, COP29 Chair, explained, "Such a market can reduce the annual costs of achieving Nationally Determined Contributions (NDC) by $250 billion by efficiently matching buyers and sellers."
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