- COP29 begins with an agreement on carbon credit standards under Article 6.4, a significant milestone that enhances the integrity of international carbon markets.
- The new standards aim to facilitate climate action by increasing demand for carbon credits, potentially reducing the cost of implementing national climate plans by $250 billion annually.
- COP29 President Mukhtar Babayev emphasizes the summit as a “moment of truth” to demonstrate global commitment and calls for ambitious climate finance and mitigation efforts.
Parties gathered for the first day of the UN Climate Change Conference in Baku, Azerbaijan, marking an early milestone with a consensus on standards for creating carbon credits under Article 6.4 of the Paris Agreement. This development is set to strengthen the international carbon market’s credibility and drive resources toward climate action, especially in developing nations.
COP29 President Mukhtar Babayev expressed the significance of this achievement: “This will be a game-changing tool to direct resources to the developing world. Following years of stalemate, the breakthroughs in Baku have now begun. But there is much more to deliver.”
Operational Focus on Article 6 The presidency identified the operationalization of Article 6 as a central objective. Article 6 compliant markets are pivotal for enabling cost-effective cooperation between nations, with potential savings of $250 billion annually on national climate action plans. This early consensus signals positive momentum for subsequent negotiations.
Setting the Stage for Ambition Opening the summit, President Babayev outlined the need for enhanced ambition and immediate action. He highlighted the urgency of addressing climate inaction: “We are on a road to ruin… They are crying out for leadership and action. COP29 is the unmissable moment that can chart a new path forward for everyone.”
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The summit, hosting approximately 70,000 delegates, will focus on reaching a fair and ambitious New Collective Quantified Goal (NCQG) on climate finance. Babayev acknowledged the challenge, noting, “We know the needs are in the trillions,” while emphasizing realistic public sector contributions in the “hundreds of billions.”
Prioritizing Climate Finance UN Climate Change Executive Secretary Simon Stiell reinforced the need for strong financial commitments: “If at least two thirds of the world’s nations cannot afford to cut emissions quickly, then every nation pays a brutal price… climate finance is not charity.”
A Call to Action President Babayev urged nations to submit 1.5-aligned Nationally Determined Contributions, prepare National Adaptation Plans by 2025, and present their Biennial Transparency Reports. He emphasized that mitigation must remain central: “As the world’s highest forum on climate change, COP29 cannot and will not be silent on mitigation.”
Babayev concluded by underscoring the collective challenge: “COP29 is a moment of truth that will test our commitment… These investments pay off.” Success, he added, requires global participation: “Azerbaijan can build the bridge, but you all need to walk across it. In fact, you need to start running.”
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