COP29 Secures Carbon Credit Deal In Azerbaijan

Negotiators at the COP29 climate summit in Azerbaijan finalized a carbon credit agreement after nearly a decade of deliberations.

Finalizing rules for Article 6 of the Paris Agreement was a priority for Azerbaijan’s COP29 Presidency. I Photo: COP29 Facebook

The decision is expected to pave the way for increased trading activity under a new market overseen by the United Nations, Natasha White and Akshat Rathi reported for Bloomberg News.

“We have ended a decade-long wait,” said COP29 President Mukhtar Babayev. “Climate change is a transnational challenge, and Article 6 will enable transnational solutions.”

Finalizing rules for Article 6 of the Paris Agreement was a priority for Azerbaijan’s COP29 Presidency.

On the summit's first day, negotiators approved a framework for implementing the UN-backed global crediting mechanism under Article 6.4 and additional rules for Article 6.2 by Saturday.

The agreement enables countries and companies to trade carbon credits. Crucially, it establishes an accounting system to ensure credits are only used once—deducting them from the national carbon inventories of selling countries.

The new rules also address long-standing issues, including robust credit accounting standards and transparency requirements for internationally transferred mitigation outcomes (ITMOs).