The historic success achieved at COP29 held in Azerbaijan was full compliance with Article 6 of the Paris Climate Agreement.
The “Report” reports that negotiations on this article for almost 10 years did not bring any results and therefore prevented the attraction of additional funds for the fight against climate change.
Although there were high hopes for the agreement of Article 6.4 of the Paris Agreement during COP-28 held in Dubai last year, it was not possible. In Baku, the parties agreed on articles 6.2, 6.4 and 6.8 of the Agreement and gave the green light to the operation of the carbon market under the full control of the United Nations Framework Convention on Climate Change (UNFCCC).
Article six generally provides for cooperation between countries on the results of mitigation measures. States must inform each other about their actions to reduce carbon emissions and sequester these gases through forests, as well as indicate this in their Nationally Determined Contributions (NDC).
Article 6.4 of the Paris Agreement provides for the creation of reliable and transparent carbon markets and the provision of carbon credits for cooperating countries to achieve climate action goals. States will no longer be bilateral, but will cooperate with the participation and oversight of the UNFCCC, and will be able to sell carbon credits to each other.
Within this mechanism, the annual carbon dioxide emission standard for each state will be determined. A country that emits less CO2 than normal will have the opportunity to sell its unused portion to countries that emit more carbon dioxide than normal. If we explain it with an example, we can say that, for example, the UN sets a maximum annual CO2 emission standard for Azerbaijan of 500 tons. As Azerbaijan uses more “green energy”, 400 tons of carbon dioxide are released into the atmosphere per year. Azerbaijan can sell the remaining quota of 100 tons to any country. Countries that emit more than their quota can obtain these quotas.
This mechanism will allow developing and poor countries to attract additional funds, since mainly developed countries emit more carbon dioxide and the established standards will not satisfy them. All operations will be carried out solely under UN supervision.
Article 6.8 of the agreement provides for a non-market approach. This article provides for the parties to cooperate in the implementation of nationally determined contributions (NDCs), including mitigation, adaptation, financing, technology transfer and a number of other issues. This includes helping to increase forest areas, providing new technologies, etc.
In general, accepting Article 6 now will allow countries to define their own NDCs. In addition, they will be able to globally regulate mitigation measures, that is, emissions reduction measures.
