COP29 gets Article 6 of Paris Agreement operational, opens carbon markets
Notable because
COP29 witnessed agreement by Parties on operationalising Article 6 of the Paris Agreement.
Article 6 permits countries to pursue voluntary cooperation to achieve Nationally Determined Contributions (NDCs) and other international mitigation purposes.
Article 6.2 is a decentralised mechanism that allows the trading of Internationally Transferred Mitigation Outcomes (ITMOs) by Parties.
Article 6.4 creates a centralised market for the trading of carbon credits.
Article 6.8 enables non-market approaches (NMAs) for climate action.
What to look out for in the months ahead
The finalisation of Article 6 provisions opens the door to operationalising Article 6.2 and Article 6.4 mechanisms.
Will India's upcoming domestic carbon market be eventually linked to Article 6 markets?
To what extent can Article 6 markets help India bridge the financing gap in meeting its net zero by 2070 target?
Will the COP29 outcome catalyse the signing of Article 6.2 agreements by India with other countries?