COP29 countries have agreed on a new global carbon market framework to accelerate climate action and reduce emissions, unlocking vital climate finance.
At the 29th session of the Conference of the Parties (COP29) in Azerbaijan, representatives from 198 countries reached a historic agreement on the creation of a global carbon market framework.
This landmark decision aims to reward nations for reducing their carbon emissions, providing a crucial tool to accelerate global climate action.
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Simon Stiell, the Executive Secretary of the United Nations Framework Convention on Climate Change (UNFCCC), lauded the agreement as “significant,” stressing the importance of urgent and bold action to combat the climate crisis.
In his remarks, Stiell highlighted the critical need for climate investments to flow to areas most in need, warning that climate deterioration will worsen the cost of living crisis and exacerbate inflation globally.
“We cannot afford to delay,” Stiell said, addressing delegates. “Unless all countries can make deep cuts to their emissions, every country and household will bear the brunt of a permanent inflationary nightmare.”
A key component of the agreement is Article 6, which outlines the standards for a centralised carbon market under the UN system.
This framework, the result of over a decade of negotiation, will enable countries to implement their climate plans more efficiently and at a lower cost, driving down emissions more rapidly.
Stiell emphasised that the framework’s success relies on its inclusivity, ensuring that developing nations benefit from the new flows of climate finance.
“These carbon markets will help countries implement their climate plans faster and cheaper, driving down emissions,” he explained.
While the agreement marks a major step forward, Stiell acknowledged that further work remains to refine and fully operationalise the carbon market.
The decision at COP29 represents a significant turning point in global climate policy, unlocking the potential for new climate finance mechanisms that could support countries in meeting their climate targets more effectively.
As the conference progresses, the focus will shift to ensuring that all perspectives continue to be considered in the ongoing development of the global carbon market framework.
This historic agreement has the potential to reshape how nations address the climate crisis, offering an innovative solution to accelerate emissions reductions and drive forward the global transition to a low-carbon future.
