EKI Welcomes COP29’s Article 6 on Carbon Markets

COP29 finalizes Article 6 framework, marking a historic leap for global climate action

Baku marks a turning point in operationalizing international carbon market mechanisms

• COP29 delivers a long-awaited agreement on Articles 6.2 and 6.4 of the Paris Agreement.

• Framework boosts transparency, enabling countries to trade carbon credits efficiently.

• EKI reaffirms its commitment to credible and inclusive global carbon markets.

At COP29 in Baku, countries finalized a landmark agreement on carbon markets under Article 6 of the Paris Agreement. The agreement, encompassing Articles 6.2 and 6.4, provides clear frameworks for country-to-country trading and centralized carbon crediting after nearly a decade of negotiations. EKI Energy Services Ltd. (EKI), a global leader in carbon market solutions, hailed this achievement as a historic milestone in the fight against climate change.

This development is critical because it lays the foundation for a transparent and robust carbon market. By enabling countries to trade emissions allowances efficiently, the agreement supports the implementation of climate plans, accelerates global efforts to halve emissions by 2030, and aligns mechanisms with the latest climate science. Developing and least-developed countries stand to benefit significantly through increased financial flows and capacity-building initiatives.

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Technical Focus

The global carbon market is poised for exponential growth. With nations adopting net-zero commitments, demand for carbon credits could skyrocket. In 2023, the voluntary carbon market alone surpassed $2 billion in value. The operationalization of Article 6 frameworks may further unlock international market potential, streamlining compliance mechanisms and fostering investment in sustainable projects worldwide.

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Speaking on the development, EKI Chairman and Managing Director Manish Dabkara stated, “EKI lauds the recognition of carbon markets as vital tools against climate change. Transparency and collaboration remain at the heart of effective global climate action, and we are committed to advancing inclusive and credible market solutions.”

The agreement also highlighted REDD+ initiatives and the tripling of annual climate finance for developing countries to $300 billion by 2035. However, concerns persist regarding the adequacy of this funding compared to the requested $1.3 trillion.

While the COP29 agreement is a significant step, much work remains. The Supervisory Body tasked with operationalizing Article 6.4 must ensure market integrity through rigorous standards. As the global community transitions from negotiation to implementation, EKI emphasises the importance of sustained momentum, innovation, and inclusivity to achieve climate goals.