Countries at the 29th Conference of the Parties (COP29) Climate Summit have endorsed new global carbon credit quality standards. The green light was an early deal on day one of the two-week United Nations conference in Baku, Azerbaijan, in November 2024, and significant progress was made on Article 6 of the Paris Agreement, which was part of the original agreement adopted in 2015. The goal of Article 6 is to promote higher ambition in climate actions, sustainable development and environmental integrity. The COP29 conference made significant progress in operationalizing this article by finalizing and adopting the detailed rules and guidelines for their implementation.
Understanding Article 6 of the Paris Agreement: Carbon Markets, Mechanisms and Cooperation.
United Nations Climate Change states that countries can use carbon markets under Article 6 to transfer credits they earn from reducing greenhouse gas emissions, to help other countries meet their climate targets. Article 6 carbon markets encourage countries to aim for higher ambition in reducing emissions, covering more sectors, and lowering the costs of cutting emissions. A portion of funds from the United Nations’s carbon market go directly into the Global Adaptation Fund (*), helping developing nations build resilience to climate impacts. Mandatory environmental and human rights safeguards are in place under Article 6 carbon markets. Additionally, projects under Article 6 can promote job creation, clean energy, and climate resilience.
The Framework for Global Greenhouse Gas Emission Reductions: Key Articles Explained.
Article 6.2. This allows countries to trade carbon credits generated by the reduction or removal of greenhouse gases (GHGs). It creates a basis for trading GHG emission reductions across countries.
Article 6.4. This establishes a mechanism for trading GHG emission reductions under the supervision of the Conference of Parties. It’s like the Clean Development Mechanism of the Kyoto Protocol.
Article 6.8. This recognizes non-market approaches to promote mitigation and adaptation. It introduces cooperation through finance, technology transfer, and capacity building, where no trading of emission reductions is involved.
The Crucial Role of Standards in Building Smart Cities.
According to the World Bank, “cities, which are home to over half of the world’s population, are responsible for around 70% of global greenhouse gas emissions.” In this context, standards are essential frameworks that assist city councils and organizations in establishing their status and outlining the path to achieving desired objectives. They ensure that different systems and technologies can work together seamlessly, which is vital for integrating new technologies with existing infrastructure. This allows smart grids, smart transportation, and other smart city services to communicate and operate efficiently.
The three key articles agreed at COP 29 highlight the importance of international cooperation, transparency, and climate finance. By providing a common framework, standards reduce costs and complexity in the development and implementation of smart city solutions, making it easier for cities to adopt new technologies and improve services. This cooperative approach aligns with the principles of international cooperation and transparency, ensuring that smart city initiatives are both effective and accountable.
Additionally, standards ensure that smart city services are accessible and user-friendly, thus enhancing the quality of life for both residents and visitors. This is in line with the goals of climate finance, as agreed at COP 29, which aims to mobilize financial resources to support climate-resilient infrastructure and technologies in urban areas. In essence, standards lay the foundation for building efficient, safe, sustainable, and user-friendly smart cities. They facilitate the integration of various technologies and services, making cities smarter and more livable, while also contributing to the global effort to combat climate change as outlined in the Paris Agreement and reinforced at COP 29.
(*) Global Adaptation Fund is a financial mechanism under the UN Framework Convention on Climate Change (UNFCCC), established in 2001 to finance concrete adaptation projects and programs in developing countries that are particularly vulnerable to the adverse effects of climate change.
Resources
COP29 Agrees International Carbon Market Standards | UNFCCC
bsi-smart-cities-report-the-role-of-standards-in-smart-cities-uk-en.pdf
Foreword: The Importance of Standards in Smart Cities
Adaptation Fund | UNFCCC
World Bank – Cities Key to Solving Climate Crisis
