Mon Nov 11 18:39:36 UTC 2024: ## Global Carbon Offset Market Set for Key Decisions at COP29
**Baku, Azerbaijan:** Countries attending the United Nations COP29 climate summit in Azerbaijan will attempt to finalize rules for a global carbon offset trading system, a crucial step towards achieving climate goals.
Carbon offsets allow countries and companies to offset their emissions by investing in projects that reduce emissions elsewhere, such as renewable energy installations or forest restoration.
The framework for this global system, established under Article 6 of the Paris Agreement, aims to create a central, UN-managed platform for trading offsets while also allowing for bilateral agreements between countries.
While progress was made at COP26 in Glasgow, negotiations at COP28 in Dubai failed to reach an agreement on key details needed to operationalize the system. As a result, some countries have begun implementing bilateral agreements, leading to concerns about the lack of clear rules and potential double-counting of emissions reductions.
At COP29, countries will focus on establishing guardrails for bilateral agreements and operationalizing the UN-backed central marketplace. These guardrails will aim to ensure that offset credits represent genuine emissions reductions and are subject to international verification.
Negotiations will also include discussions on whether the UN registry should directly handle credit transactions or only serve as an accounting tool.
An expert group has already developed a framework for the multilateral trading system, which will be presented for approval at COP29.
A successful outcome at COP29 could lead to the launch of the system as early as 2025, potentially boosting confidence in the voluntary carbon market and encouraging greater participation from companies with voluntary emissions targets.
The outcome of these negotiations holds significant implications for the future of global climate action, as the carbon offset system is seen as a key mechanism for achieving ambitious climate goals and facilitating financial flows towards developing countries.
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