Countries participating in the UN Cop 29 climate summit in Baku, Azerbaijan, have adopted new standards for creating carbon credits under the Paris Agreement.
Marking what officials leading the negotiations called "a sign of early momentum" on the first day of the talks, participating countries agreed on standards that will cover credits for greenhouse gas (GHG) emissions removals under Article 6.4 of the Paris Agreement. The new standards set requirements for developing and assessing projects and establish rules covering carbon removal projects.
The standards will help developers create and submit methodologies for their projects, to allow them to be registered under the new Paris Agreement Crediting Mechanism, the successor to the Clean Development Mechanism under the Kyoto Protocol.
Reaching agreement on the final elements of Article 6.4 and Article 6.2 of the Paris Agreement is one of the top items at the Baku meeting, after countries failed to reach a deal at last year's talks in Dubai.
"This will be a game-changing tool to direct resources to the developing world", COP president Mukhtar Babayev said. "Following years of stalemate, the breakthroughs in Baku have now begun. But there is much more to deliver."
But the Cop member states still must reach agreement on other aspects of implementing 6.4 and 6.2, which together govern how countries can use carbon credits to meet their GHG emissions-reduction pledges, known as nationally determined contributions (NDCs). Remaining issues cover the nature of credit registries, the guidance for inclusion of removals and a solution for dealing with reporting inconsistencies and credit authorizations.
Article 6.2 allows parties to form bilateral agreements for carbon mitigation projects that generate "internationally traded mitigation outcomes" is largely operational. A number of countries have already entered into such agreements.
The standards agreed to today were recommended by the Article 6.4 supervisory body, effectively the regulatory of the Paris carbon market, at its meeting in October. The supervisory body said its approach would allow it to review and further improve the standards "when ever necessary" and to "keep up with market developments".
Carbon market supporters such as the International Emissions Trading Association had urged countries to back the supervisory body's recommendations.
Civil organization Oil Change International criticized Cop members for backing "loose standards for dangerous carbon crediting mechanisms behind closed door".
