COP29 to Finalize Article 6 Carbon Markets, Net-Zero Rules

“The finalization of Article 6 carbon markets, paired with robust accountability mechanisms for net-zero pledges, is a key expectation of COP29. Countries are anticipated to operationalize Article 6.2 and 6.4, establishing both bilateral and global frameworks for carbon credit trading. This initiative will involve setting rigorous standards to prevent double-counting and ensure the environmental integrity of credits, which are essential for building a trusted and effective global carbon market. Concurrently, COP29 aims to implement binding reporting frameworks for net-zero commitments, mandating transparent and standardized tracking under the Enhanced Transparency Framework of the Paris Agreement. Compliance mechanisms—potentially featuring intermediate milestones or binding commitments—may also be introduced to hold nations and corporations accountable, curbing instances of “greenwashing.” Collectively, these efforts will pave the way for measurable, enforceable progress toward a low-carbon global economy. As we look ahead, COP29 holds the promise of transforming aspirations into actionable commitments, ensuring that our path to sustainability is both clear and accountable. " 

Quote from Mr. Saunak Saha, Partner – Climate Change and Sustainability Services, EY India.