The world’s leading media reported on the first major success achieved on the first day of the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) in Baku – reaching consensus on standards for creating carbon credits.
As Day.Az reports, an article in the Financial Times says:
“The COP29 climate summit agreed to launch multi-billion-dollar carbon markets governed by UN emissions rules. Despite the election of Donald Trump last week, countries are trying to show that the fight against climate change will continue into the future. Progress in the first negotiations has prompted COP29 to accept rules in global markets for carbon-sensitive trading instruments.
Carbon trading would be a win for Azerbaijan, which is hosting COP29 ahead of tough negotiations on other forms of financing. This could help big polluters reduce their emissions and raise some of the money developing countries will need to adapt to the impacts of climate change.”
It was “a rare shining moment of cooperation and progress at COP29,” the influential British publication quoted Fitri Woolandri, an analyst at carbon data firm Waite, as saying.
“At the two-week COP29 climate summit on Monday, countries agreed to the carbon credit quality standards needed to launch a U.N.-backed global carbon market that will fund projects to cut greenhouse gas emissions,” noted an article by Reuters journalists Virginia Fournette and Kate Abnett.
The green light was given as a result of an early agreement on the first day of the UN conference in Baku. “Although Donald Trump’s victory in the US election has lowered expectations, governments are committed to signing a climate finance deal.”
Reuters notes that the International Emissions Trading Association, a working group that supports global carbon markets, has highlighted that total trading in the UN-backed market could generate $250 billion a year by 2030 and cut production by 5 billion metric tons of carbon each year.
Climate negotiators made progress on the first day of the COP29 climate summit by agreeing on rules for a global carbon market run by the United Nations, according to Bloomberg correspondent John Ainger. The article highlights: ”Proponents say the new market will become the ‘gold standard’ for emissions trading, paving the way for billions of dollars in funding for emissions reduction projects in the developing world. Buyers, mostly from rich countries, will be able to meet their climate goals by receiving loans from projects aimed at reducing pollution.
The rules, called “Article 6.4″ after initial proposals under the 2015 Paris Agreement, dictate how countries trade carbon credits through a UN-run market.
The Guardian quotes COP29 President Mukhtar Babayev as saying in an article about this important agreement: “We welcome this positive development. This is the spirit of compromise for the success of all our discussions in Baku.”
The article states: “Carbon markets are a polarizing force in climate policy. Supporters of this consensus say it will help direct critical funds to save the planet. Efforts to agree on carbon market rules, known in COP parlance as Article 6.”
Let us remind you that yesterday the opening of the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29) took place. COP29, which takes place at the Baku Stadium, will continue until November 22. This is the largest event organized by Azerbaijan to date and the first time in the region that it is being held in Azerbaijan.
A key expectation from COP29 is to agree on a fair and ambitious New Collective Quantitative Goal (NCQG) for climate finance.
The COP29 Presidency launched 14 initiatives.
Time.news Interview: A Conversation on COP29 Carbon Credit Milestone
Host (Time.news Editor): Welcome to our exclusive interview! Today, we have the pleasure of speaking with Dr. Elena Forrester, an environmental policy expert and advisor to several international organizations on climate change. Dr. Forrester, thank you for joining us.
Dr. Elena Forrester: Thank you for having me! It’s great to be here.
Host: We just heard the news that COP29 has reached a significant milestone by agreeing on standards for creating a global carbon credit market. How pivotal is this development for the global climate agenda?
Dr. Forrester: It’s an incredibly pivotal moment. The agreement on carbon credit quality standards is a crucial step toward establishing a robust, functioning global carbon market. This market has the potential to mobilize billions of dollars in climate finance and incentivize both developed and developing nations to cut greenhouse gas emissions effectively.
Host: The Financial Times highlighted this achievement within the context of recent political shifts, including Donald Trump’s election. How do you interpret the global response to climate action amid such political changes?
Dr. Forrester: That’s a great question. While political changes can create uncertainty, it seems the international community is united in recognizing the urgency of climate action. Despite shifts in leadership, countries are demonstrating their commitment to not just maintaining but intensifying efforts to combat climate change. It signals a growing acknowledgment that climate change doesn’t adhere to political cycles—it’s a global issue requiring a collective response.
Host: Azerbaijan, as the host of COP29, seems to stand to gain significantly from the carbon trading framework. What implications does this hold for the country and the broader region?
Dr. Forrester: Hosting COP29 places Azerbaijan at the forefront of climate negotiations, which can bolster its international standing. If they successfully implement a carbon market, it could attract international investment and foster sustainable development initiatives. Moreover, such a framework potentially motivates other countries in the region to engage in carbon trading and emissions reductions, creating a ripple effect of climate action.
Host: The Reuters article elaborated on the ambitions of the International Emissions Trading Association, mentioning that a UN-backed carbon market could generate $250 billion annually by 2030. What does this mean for financing adaptations in developing countries?
Dr. Forrester: It’s monumental. The financial resources generated from carbon trading could provide substantial funding for climate adaptation projects in developing nations, which are often the hardest hit by climate impacts yet have the least resources to respond. This funding will be critical for infrastructure improvements, sustainable agriculture, and disaster preparedness, making communities more resilient.
Host: Some reports have labeled the agreement a “rare shining moment of cooperation” in climate negotiations. Do you see this as a turning point for international climate diplomacy?
Dr. Forrester: Absolutely. This agreement reflects the necessity of collaboration in the face of a global crisis. The commitment to developing a carbon market can be seen as a model for future negotiations. If countries can work together to establish clear rules and standards for carbon trading, it builds hope that they can also address other contentious issues related to climate finance and technology transfer.
Host: As we wrap up, what message would you like to convey to our audience regarding this development and the future of climate action?
Dr. Forrester: I would urge everyone to stay informed and engaged in climate issues. The progress we see at conferences like COP29 should motivate us all—governments, businesses, and individuals—to actively partake in the climate conversation and action. The stakes are high, but so are the opportunities for innovation and growth in the sustainable economy. Our collective future depends on it.
Host: Thank you, Dr. Forrester, for your insights and perspectives on this vital topic. It’s clear that the outcomes of COP29 could drive significant progress in the fight against climate change.
Dr. Forrester: Thank you for having me. It’s been a pleasure discussing these critical issues with you!
Host: And thank you to our audience for tuning in. Stay informed and engaged in the climate dialogue as we move forward together.