Posted on November, 23 2024

Baku, Azerbaijan (23 November): While COP29 is still ongoing and the final outcome is still uncertain, countries have finally reached agreement on the carbon market mechanisms of Article 6 of the Paris Agreement - the last unresolved section of the agreement. 

Rueban Manokara, WWF Carbon Finance and Markets Taskforce, Global Lead, said: “Nearly ten years on since the Paris Agreement, it is a significant milestone to see the last remaining Article get approval to begin operating. The agreement is a compromise that reflects the challenging negotiations that have been underway since 2015, but ultimately it is positive that there is now further guidance on how Article 6 mechanisms will operate. While the final text is not perfect, it provides a degree of clarity that has long been absent from international efforts to coordinate emissions trading and carbon crediting. 

“Importantly the agreement ensures Parties will continue dialogue on this issue and continue to refine and improve the guidance. It is positive to see the agreement committing states and organisations supplying projects for carbon finance to actively consult interested stakeholders, including Indigenous Peoples and local communities. It also ensures that work under the Supervisory Body to prevent the reversal of climate and nature benefits will be prioritised. It is vital that all forms of carbon finance benefit climate, nature and people, and have a lasting impact on emissions reductions.”

As more players in both the private and public sectors explore how market mechanisms can be leveraged to promote climate solutions, it is critical that guardrails are in place to ensure that these efforts provide tangible positive impact on climate mitigation, and maximise the benefits to people and nature. A well-functioning Article 6 mechanism is a critical tool in that regard.

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