COP29 kicks off with carbon markets breakthrough
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The COP29 climate summit was off to a brisk start this week. Negotiators secured a breakthrough on day one as rules were agreed for a United Nations-administered global carbon market – hailed as a "win" by the Azerbaijan COP presidency.
But climate groups and legal experts are cautious about how pressure to break the years-long deadlock and finalise carbon trading rules, otherwise known as Article 6.4 under the Paris Agreement, has driven a UN supervisory body to take a different approach – it finalised the standards before the summit had started. Consensus-based decision-making at multilateral fora, while slow and laborious (and a key reason why advancing climate action at COP has been difficult), generally ensure due process for substantive issues. The UN has said it was working intensively to lay the foundations for early endorsement of the rules. But critics say the approach was rushed and departed from usual procedures.
Nevertheless, the agreement is expected to provide the clarity needed to trade emissions within a global carbon market. As this year's climate change meeting gathers with notable heads of state absent, the UNFCCC is keen to demonstrate why the COP platform is still relevant – UNFCCC chief Simon Stiell claimed COP is the "only place" for climate action at the opening ceremony.
Whether it can facilitate consensus for divisive issues like finance and trade remains to be seen. Dealing with Trump's re-election is also top of mind for many at the COP29 summit. His electoral comeback has prompted some crystal ball-gazing into what Trump 2.0 could mean for many things, including the corporate ESG agenda and the clean energy transition in Southeast Asia. Keep updated on our COP29 coverage here.
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Negotiators secured a breakthrough and got Article 6.4 under the Paris Agreement approved on the first day of the climate summit.
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