COP29 opens in Baku with breakthrough on global carbon markets

The UN Climate Change Conference began  on Monday with an important early success as participants reached agreement on standards for creating carbon credits under Article 6.4 of the Paris Agreement.

This agreement will support climate action by increasing the demand for carbon credits and ensuring the international carbon market operates under UN guidance.

COP29 President Mukhtar Babayev called this outcome a “game-changing tool” for channeling resources to developing countries. “After years of deadlock, breakthroughs in Baku have started. But there is still much more to do,” Babayev said.

The full implementation of Article 6 was set as a major goal by the COP29 Presidency this year.

Experts say finalizing Article 6 could save $250 billion each year on national climate plans by encouraging cooperation across borders. Today’s agreement is an essential step forward and sets positive momentum for the rest of the two-week negotiations.

President Babayev opened the summit with a clear message to global leaders to increase ambition and enable real action. With COP29 taking place from November 11 to 22 in Baku, Azerbaijan, around 70,000 delegates are expected to attend, including heads of state and government joining the leaders’ session on November 12-13.

This summit is seen as a crucial opportunity for world leaders to show their commitment to climate action.

In his opening speech, Babayev pointed out that current policies could lead to a dangerous 3 degrees Celsius rise in global temperatures, as indicated in the latest UNEP Emissions Gap Report.

“We are on a road to ruin. Whether you see it or not, people are suffering in silence. They are dying unnoticed. And they need more than compassion or paperwork. They need leadership and action. COP29 is the chance to set a new path forward for everyone,” he told delegates.

Babayev identified an agreement on a fair and ambitious New Collective Quantified Goal (NCQG) for climate finance as a top priority.

He noted progress on structuring, access, transparency, and timelines, though there are still disagreements over contributors and the target amount.

“We know the needs are in the trillions,” Babayev said, adding that the public sector could realistically provide or mobilize “hundreds of billions.”

While acknowledging the challenge, he emphasized, “These numbers may sound large, but they’re small compared to the cost of doing nothing. These investments will pay off.”

Simon Stiell, the UN Climate Change Executive Secretary, also highlighted the importance of setting a new climate finance goal in Baku.

“If two-thirds of the world’s nations can’t afford to cut emissions quickly, every nation suffers. Climate finance is not charity. A strong climate finance goal benefits all nations, even the richest,” he said.

To increase ambition, Babayev called for countries to submit climate plans aligned with the 1.5-degree target by next year, submit National Adaptation Plans by 2025 to prepare for warming, and deliver their first Biennial Transparency Reports this year.

Babayev emphasized the need for emissions reductions, stating, “COP29, as the world’s top climate forum, will not remain silent on reducing emissions.”

He announced the release of a summary of the COP29-International Energy Agency high-level talks, which offer guidance for a fair and organized transition.

“We’ve prioritized emission reduction in all meetings leading up to COP to ensure we can make progress,” he said.

“As a Presidency, we’re working from every angle to tackle the problem, keeping our main focus on the NCQG,” he added.

In closing, Babayev said that with the first decade under the Paris Agreement ending, COP29 is a “moment of truth” that will test the world’s commitment to climate goals.

Calling climate action the “race of our lives,” he acknowledged the challenges ahead but affirmed, “we wouldn’t set these expectations if we didn’t believe they were essential.”

Praising Azerbaijan’s role in hosting the talks, Babayev stressed that success would depend on everyone’s effort.

“Azerbaijan can build the bridge, but you need to cross it. In fact, you need to start running,” he concluded.