IETA STATEMENT ON THE CONCLUSION OF COP29

BAKU, 22 November – IETA warmly welcomes the completion of the Article 6 rulebook at COP29. The final guidance agreed in Baku provides clarity around reporting requirements, authorisation processes, and registry architecture, allowing countries and private entities to engage with confidence in international carbon market mechanisms.

We congratulate the COP Presidency on its leadership in completing a decision on the Supervisory Body for the Article 6.4 Mechanism (SBM) on the first day of COP29. This decision enables the SBM to push forward in implementing the crediting program of Article 6.4. This program can assist developing countries in attracting private sector finance to deliver additional mitigation – and for partner countries and companies to benefit from the credits produced.

IETA will continue to support the UNFCCC Secretariat and the Article 6.4 Supervisory Body in the next steps to operationalise the Paris Agreement Crediting Mechanism (PACM). After the milestone achieved in Baku, we call for a swift development of crediting methodologies and outstanding technical tools.

We now call on all governments to make use of Article 6 and to implement policies that spur international market-based cooperation. By mobilising private investment where emission reductions and removals are more cost-effective, Article 6 has the potential to enhance climate ambition, transfer technology, and deliver finance flows where most needed.

Article 6 can now help countries aspire to higher ambition in the next round of Nationally Determined Contributions due in 2025. Nine years after the signing of the Paris Agreement, it is time for this potential to be unleashed and fully utilised in pursuit of ambitious climate goals.

As we look ahead to 2025, IETA stands ready to work with countries through the Article 6 Implementation Partnership and other capacity building programs focused on fostering high-integrity carbon markets. We are heartened by the work of the Global Carbon Pricing Challenge and numerous progress reports at COP 29 of new and expanding national carbon pricing programs – from China, the European Union, Singapore, Korea, Indonesia, Brazil and Turkey.