COP29 Comprehensive Article 6 Debrief: Operationalizing the full set of Article 6 of the Paris Agreement – A balancing act between bottom-up flexibility and top-down governance

You can read the full debrief here: COP29 Comprehensive Article 6 Debrief_Climate&Company

COP29 in Baku marked a significant achievement in international climate governance, finalizing the rules for Article 6 of the Paris Agreement. These rules define the frameworks for cooperative approaches (Article 6.2), the Paris Agreement Crediting Mechanism (‘PACM,’ Article 6.4), and non-market approaches (‘NMA,’ Article 6.8). This debrief provides a detailed analysis of the outcomes, highlighting technical advancements, structural gaps, and future implications.

In summary:

COP29 fully operationalized all Article 6 mechanisms, providing a technical foundation for international carbon markets and non-market solutions. The PACM’s adoption of standards removed the last legal barrier – Article 6.4 can now be implemented once the Article 6.4 Supervisory Body (SBM) has finished its work on accepting methodologies based on the COP29 adopted standards and the registry infrastructure is ready. First, credits based on the PACM can be expected to be issued by the end of 2025-2026 as the newly appointed chair for 2025 of the SBM announced in an official side event at COP29. This is novel, as Article 6.4 was not operational yet before COP29. Article 6.2, however, has been operational since 2021, with the Glasgow decision complemented by the Sharm el-Sheikh decision from COP27. The new rules for Article 6.2 agreed in Baku now finalize the first ruleset needed to fully implement Article 6.2 until its revision in 2028 (revision period from 2028 – 2030). Finally, the continuous establishment of the NMA platform (Article 6.8) demonstrates a commitment to integrating broader climate and development objectives beyond market-based approaches.

However, weak enforcement mechanisms under Article 6.2, mainly the voluntary nature of addressing inconsistencies and non-mandatory disclosure elements, have the potential to undermine compliance and transparency. Similarly, the inclusion of low-quality legacy credits (CDM-transition credits) in the PACM threatens to dilute its credibility. Altogether, the decisions made at COP29 demonstrate progress in global climate governance but also highlight the need for sustained effort and collaboration to address remaining gaps. Realizing the full potential of Article 6 mechanisms hinges on translating these frameworks into concrete actions that achieve equitable and impactful climate outcomes while applying them with the highest possible ambition. This is especially crucial given the bottom-up flexibility enshrined in the Paris Agreement, as reflected in Article 6. As the frameworks evolve and are now being implemented until their revision in 2028, success will hinge on political will, innovative solutions, and strong multilateral engagement.