Hon Simon Watts
Minister of Climate Change

Countries have reached a deal on carbon markets at the annual United Nations climate change meeting (COP29) in Baku, Azerbaijan.

Co-chaired by Singapore’s Minister for Sustainability and the Environment Grace Fu and New Zealand’s Minister of Climate Change Simon Watts, the negotiations on Article 6 (carbon markets) concluded successfully with all 196 Parties agreeing to the final text.

“After years of negotiations, international carbon markets under the Paris Agreement are now fully operational, resolving one of the most sophisticated and technical challenges in climate diplomacy,” Mr Watts says.

“This decision sends a clear signal to the market to unlock investments in activities that reduce emissions and enable countries to be able to work together and support each other to meet their climate targets.

“The deal will mean more renewable and sustainable projects that reduce global emissions, supporting the transition to a low emissions future.

“Article 6 is one of the only key COP29 priorities that has come to an agreement. I want to thank all countries for their participation in these tough negotiations and hope Parties reach consensus on other issues.”

“Having co-facilitated Ministerial consultations on Article 6 of the Paris Agreement in COP26 in Glasgow and COP27 in Sharm el-Sheikh – I was privileged to be invited to take on this key task again at COP29 in Baku,” Minister Fu says.

“Minister Simon Watts and I consulted extensively with all Parties, and I am glad that we were able to come to a consensus on Article 6.

“The decisions on Article 6 at COP29 will provide the necessary confidence in carbon markets to facilitate the trading of high quality carbon credits. This will be critical to mobilise private capital toward global mitigation efforts, and to ensure we keep global temperature rise below 1.5 degrees.”

“Singapore and New Zealand are committed to supporting the Paris Agreement and are honoured to have been able to support the Presidency to reach consensus on this key outcome of COP29,” Ministers Fu and Watts say.

Further technical rules will need to be sorted in 2025, but this is a major boost to carbon trading proponents following several years of countries’ not being able to reach consensus.

© Scoop Media