More than 100 countries have reached a historic agreement on the framework for a UN-supported international carbon market, allowing nations to trade high-quality carbon credits to help meet their climate targets.
The breakthrough was announced by Simon Stiell, Executive Secretary of UN Climate Change, at a press conference in Baku.
Carbon credits are generated through activities that reduce or prevent the release of greenhouse gases, such as reforestation, protecting carbon sinks, or replacing coal with clean energy sources. In this market, one carbon credit represents the removal or prevention of one tonne of carbon dioxide emissions.
Since the Paris Agreement in 2015, the UN has been working to establish rules that enable countries and businesses to trade credits in a transparent and credible market. The new guidelines adopted in Baku provide a foundation for developing further rules, including determining how many credits a specific project can generate.
The carbon market will primarily benefit high-emitting, wealthier countries, allowing them to offset their emissions by purchasing credits from nations that have exceeded their climate pledges. These credits can then be used to help these countries achieve the climate targets set out in their national plans.
At a press conference during COP29 on Wednesday, UN Climate Change Executive Secretary Simon Stiell provided an update on Article 6 of the Paris Agreement.
“There is still more to be done, but this marks a significant step forward—a decade of work culminated in this moment. Once fully operational, these carbon markets will enable countries to implement their climate action plans more efficiently and cost-effectively, helping to reduce emissions,” he said.
Meanwhile, Mr. Noah Gyimah, Chief Investment Officer of Jospong Group of Companies, signed the first agreement on carbon credits with four of its recycling plants. The initiative, announced during COP28 in Dubai last year, aims to remediate nearly 1.5 million tonnes of waste.
“If you can transport your waste and aggregate them at a shorter distance, then you can remove some CO2 emissions.”
Ghana aims to cut emissions by 64 million metric Tonnes by 2030.
