COP29 Finalizes Global Carbon Trading Rules Under Article 6

The agreement aims to regulate carbon credit markets but raises concerns over transparency, integrity, and potential greenwashing.

Countries reached a long-awaited agreement at COP29 to establish a framework for global carbon credit trading under the Paris Agreement's Article 6.
The deal includes both a UN-administered market and bilateral trading systems, with rules designed to direct investment into emissions reduction projects in developing nations.
Critics warn that weak oversight and inconsistent standards could lead to greenwashing, undermining global climate goals and the credibility of carbon markets.
Indigenous communities and local populations have raised concerns about human rights abuses and exploitation linked to carbon offset projects on their lands.
The market is projected to grow significantly, with potential to mobilize billions in climate financing, but experts emphasize the need for robust safeguards and higher integrity in traded credits.