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Countries took a significant step by finalizing key rules for #carbonmarkets under Article 6 of the #ParisAgreement at COP29 earlier this week. A quick summary of what were involved: What are #CarbonOffsets and #CarbonCredits? Carbon offsets allow companies or nations to invest in projects that reduce or remove #greenhousegases (like #reforestation or #renewableenergy) to compensate for their #emissions. A carbon credit is a tradable certificate representing one #tCO2 reduced or removed. What is #Article6? Article 6 enables cooperation between countries to meet #climatetargets through carbon markets: ➡ Article 6.2: Focuses on bilateral agreements for #carbontrading. ➡ Article 6.4: Establishes a global, UN-supervised carbon credit mechanism. Decisions Made at #COP29: Nations agreed on: ➡ Rules for avoiding #doublecounting of #emissionsreductions. ➡ Transparency requirements for tracking carbon credits. ➡ Enhanced scrutiny to ensure high-quality, verifiable carbon projects. Global Impacts: ➡ Encourages international collaboration in reducing emissions. ➡ Mobilizes #greenfinancing for #greenprojects in developing countries. ➡ Promotes accountability and credibility in carbon markets, reducing #greenwashing risks. This is a pivotal moment (hopefully) for global climate action, fostering cooperation and innovation to achieve net-zero targets. #COP29 #CarbonMarkets #ClimateAction #Sustainability #NetZero #ESG

COP29: UN Approves Article 6.4, Launches Global Carbon Market In a landmark decision, COP29 negotiators have endorsed a framework for a UN-backed carbon trading mechanism under Article 6.4 of the Paris Agreement. After years of complex negotiations, this breakthrough in Baku sets up a global carbon market, directing resources towards developing nations and sparking new demand for carbon credits. Nearly 200 governments have committed to moving forward with this initiative, which aims to address past challenges and bring integrity to the carbon market. This decision marks a crucial step for the future of carbon certification, carbon finance and climate action. Read more about the article here: https://lnkd.in/g9eZn4Jn #COP29 #CarbonMarkets #ClimateAction #ParisAgreement

COP29 AGREES INTERNATIONAL CARBON MARKET STANDARDS Negotiators at the COP29 talks in Baku, Azerbaijan have reached an agreement on standards for international carbon markets under Article 6.4 of the Paris Agreement and a dynamic mechanism to update them. Article 6.4 establishes a successor to the Clean Development Mechanism (CDM)—a UN-backed market for carbon credits generated by emissions reduction projects—and aims to create a global carbon market regulated by a supervisory body set up by the UN Framework Convention on Climate Change. ➡️ Methodology standards The standards for methodologies lay out how baselines for measuring emissions reductions must be established, and how any reductions align with the Nationally Determined Contribution of the two nations involved in a trade. They also require methodologies to demonstrate additionality. ➡️ Carbon removal projects The rules for carbon removals lay out how emissions reductions as a result of CCUS and related sequestration activities should be assessed. They provide guidance on monitoring periods, accounting formulae, and how any ‘reversals’ (leakage of CO₂ back into the atmosphere) should be assessed, reported and remediated. ➡️ Work ahead The COP Presidency has also made it a priority to make progress on Article 6.2 of the Paris Agreement, and hopes for more outcomes on that front before the end of the talks. Article 6.2 has a separate, though overlapping, function to Article 6.4. It allows for emission reductions dubbed ‘Internationally Transferred Mitigation Outcomes’ to be transferred from one national account to another as part of bilateral agreements between nations. https://lnkd.in/dDJut2gc #carbon #markets #standards #credits #CO2 #emissions #reductions UNFCCC UN #COP29 United Nations

🌍 COP29 Spotlight (Nov 2024): Carbon Credits and the Global Push on Article 6 As COP29 unfolds in Azerbaijan this November, world leaders and negotiators are tackling a major challenge: creating a unified, transparent carbon credit market under Article 6 of the Paris Agreement. Here’s what’s at stake and why it could be a game-changer for global climate action. 💡 What’s a Carbon Credit? Carbon credits represent a ton of CO₂ reduced, captured, or avoided, often through green projects like reforestation or renewable energy. For businesses and countries, buying these #credits means funding real environmental action to offset their emissions. 🔥 Why It’s a Big Deal Now If finalized, Article 6 could shape a truly global carbon market, making it easier and cheaper for countries to hit climate targets. This system could attract major investments, driving #emissions reductions where they’re most cost-effective—helping us all move closer to net-zero by 2050. 🌱 Challenges and Controversy Some argue that carbon credits allow polluters to “buy” their way out of responsibility. The COP29 discussions aim to set strict rules by 2025 to avoid double-counting and ensure projects deliver genuine emissions cuts, adding credibility to the system. 🚀 The Potential Impact With fair, transparent rules, this market could mobilize billions for #climate solutions, level the playing field globally, and encourage ambitious climate goals. 🌐 What’s Next? If #COP29 achieves consensus on #Article 6 this November, it could unlock transformative financing for climate action, providing a new model for global cooperation on emissions. 🔗 Read the full story on #Reuters https://lnkd.in/dvFCZ-P9

🌍 Rapid Developments on Carbon Markets at COP29 🌍 In a surprising turn at COP29, countries reached a historic consensus on market rules for Article 6.4 of the Paris Agreement—breaking years of deadlock but raising eyebrows due to the speed at which it was approved. This swift decision has put Article 6.4, which establishes a global carbon trading mechanism, back in the spotlight. While it’s a significant step forward, experts caution that the text may not be fully ready for adoption. 📄 The attached document breaks down Article 6.4 and differentiates it from Article 6.2, followed currently. #COP29 #ClimateAction #CarbonMarkets #ParisAgreement #Sustainability #Environment

🌍 COP29 Kicks Off in Baku: Day 1 Highlights and Key Developments 🌍 On Day 1 of COP29, global leaders and climate experts convened in Baku, Azerbaijan, to launch this crucial summit. Here’s a breakdown of the main takeaways so far: 🌱 Opening Speeches: Urgent Calls for Action: COP29 opened with compelling speeches from Sultan Al-Jaber, President of COP28, Mukhtar Babayev, President of COP29, and Simon Stiell, UN climate head. 🤝 Reaching a COP29 Agenda: Negotiating Complex Issues An agreement on the agenda took time, with debates over how to transition away from fossil fuels and the inclusion of trade measures in climate discussions. 🌐 Trade Tensions: The BASIC group, led by China, proposed including trade measures like Europe’s carbon border tax, but ultimately agreed to defer it to presidential consultations, easing the path for COP29 proceedings. 💼 A Game-Changer in Carbon Markets: Azerbaijan prioritized the operationalization of Article 6 of the Paris Agreement, with COP29 approving new carbon crediting rules that allow developing nations to earn credits from emission reductions. However, some countries and civil society groups expressed concerns over the rapid approval process, fearing it lacked proper scrutiny and could compromise human rights and environmental safeguards. US Climate Stance Remains Resilient: John Podesta, the US climate envoy, reassured the world that despite political changes, the US will stay committed to reducing emissions. He highlighted the resilience of policies like the Inflation Reduction Act, driven by private and sub-national initiatives, and encouraged China to step up as a global leader in climate action. 🗣️ Notable Leader Absences and Key Upcoming Statements: Many prominent leaders are absent from COP29, including those from the US, China, India, and the EU. Azerbaijan’s President Ilham Aliyev is expected to seize this opportunity to spotlight the country’s climate plan, while the UK’s new Prime Minister, Keir Starmer, may unveil ambitious 2035 emissions targets. COP29 has already set the stage for critical discussions. Global cooperation is essential to turn commitments into action and ensure that nations can meet the climate finance needs of developing countries, accelerate renewable energy growth, and reduce reliance on fossil fuels. 🌍 #COP29 #ClimateAction #SustainableDevelopment #RenewableEnergy #CarbonMarkets #ClimateFinance #ClimateChange #UNFCCC #ClimateResilience

The world's move toward decarbonization is happening – but are companies moving fast enough? With COP29 Azerbaijan now underway, global leaders are amplifying calls for urgent climate action. The summit’s first major step? A multibillion-dollar global carbon trading deal governed by UN rules, designed to support high-emission industries in offsetting carbon while generating crucial climate funds for developing nations. Meanwhile, the EU’s Carbon Border Adjustment Mechanism (CBAM) targets a 55% reduction in carbon emissions by 2030. For companies not aligning with CBAM, production costs could rise by up to 30% from adaptation expenses or carbon taxes. As regulatory and operational costs mount, companies slow to prioritize sustainability may struggle to keep up. But is imposing fines enough to drive real change? Or is there a better solution? What do you think? #Sustainability #Decarbonization #CBAM #COP29 #RegPac

Balancing Act: New UN Carbon Trading Rules Emerge at COP29 In a significant development at COP29, the United Nations has approved new rules for carbon trading between nations. This agreement permits wealthy, high-emission countries to purchase carbon-cutting offsets from developing nations. While this move aims to enhance global cooperation in reducing emissions, it also raises concerns about potential "greenwashing," where countries might claim progress on climate targets without making substantive domestic changes. These newly approved rules are a testament to the ongoing complexities of international climate negotiations. Proponents argue that such mechanisms can drive investment into cleaner projects in developing countries, promoting sustainable development. However, critics warn that relying too heavily on offsets might detract from the primary goal: ambitious, immediate reductions in emissions by traditionally high-polluting nations. The conversation now turns to implementation and authenticity. How can we ensure that these traded offsets lead to real, verifiable emission reductions globally? The balance between economic incentives and genuine climate action remains delicate, and it's crucial that all nations commit to transparency and accountability as they navigate these new rules. Are these new carbon trading rules a genuine step forward for global climate action, or do they risk being an excuse for inaction by wealthier nations? #COP29 #CarbonTrading #ClimateAction #SustainableDevelopment #Greenwashing #GlobalCooperation ----- P.S.: Looking for a creative outlet? Check out our creative books at www.sleepyhippie.com for inspiration and fun.

Day 1 at #COP29 delivers progress on carbon markets. Article 6.4 gets the gavel from the Chair after an early consensus was reached on standards and methodologies, paving the way for an international expansion of trading in carbon credits. Despite doubts in some quarters over the process and future integrity of markets and the development of safeguards, overall the decision is widely seen as a positive on a area that has been deadlocked amongst climate negotiators & nations for some years. Read more: COP 29 Home Page 11/11/2024 'COP29 Opens in Baku with Breakthrough on Global Carbon Markets' https://lnkd.in/eVkrHByJ Carbon Herald: 12/11/2024 'COP29: UN Approves Article 6.4, Launches Global Carbon Market' https://lnkd.in/eK9Z79kS Reuters: 12/11/2024 COP29 countries endorse global carbon market framework https://lnkd.in/gtEksH4S Background: IPR Post: 14/10/2024 'Could carbon trading be taking another step forward in the run up to hashtag#COP29?'  https://lnkd.in/gb7iYW7r #iprforecasts #carbonmarkets #cdr #carboncredits #carbontrading

COP29 Breaks Logjam on International Carbon Trading Day one of COP29 saw a breakthrough in the years-long logjam on Article 6.4, as diplomats greenlit key rules for international carbon credit trading. This progress is a significant step toward operationalising the Paris Agreement’s carbon markets, even though the actual trading of UN-regulated carbon credits remains at least a year away. “The sudden clearing of the Article 6.4 logjam has injected fresh optimism into COP, especially for carbon market stakeholders,” said Fitri Wulandari, Global Carbon Analyst at Veyt. “Assuming no further delays, fresh Paris-aligned carbon credits could enter the market by 2026—good news for project developers and host countries in need of finance.” With increased interest in the VCM from both corporates and countries seeking to mitigate their emissions, delivering a credible, global market for carbon credits remains in all parties’ interest. Enshrining the UNFCCC’s role as an oversight body for this key market represents a step change, promising greater accountability and cohesion. If fully realised, these new standards could redefine carbon markets as a vital tool for climate action, driving finance to high-integrity climate solutions and supporting countries in meeting their climate commitments. You can read more of Veyt’s analysis in the Financial Times: https://lnkd.in/eQRhQUFx Or for the story in the press release: https://lnkd.in/dwQ6RPZ6 For the full analysis including timelines, potential barriers and likely impact, please reach out to Fitri Wulandari #COP29 #CarbonTrading #ClimateAction #SustainableFinance #ParisAgreement #VCM #UNFCCC #NetZero