Great progress for emissions trading under the Paris Agreement at COP29 in Baku
After long and intensive negotiations at the UN climate conference COP29, the Parties agreed on rules and procedures for emissions trading under Article 6 of the Paris Agreement. These decisions create conditions for the international carbon market to scale.
The UN climate change conference brings together the countries of the world to negotiate global climate action and showcase progress and innovation. Photo: COP29 Azerbaijan
Several important decisions were made in the climate negotiations at COP29 in Baku, Azerbaijan. The topic that received the most attention was the New Collective Quantified Goal (NCQG). The parties agreed to mobilise 300 billion USD per year in climate finance to developing countries by 2035.
Emissions trading under the Paris Agreement
The parties also agreed on rules for emissions trading under Article 6 of the Paris Agreement.
– For the Swedish Energy Agency and Sweden, it was important that the countries could also agree on rules for the UN-regulated emissions trading, says David Newell, Sweden's negotiator for Article 6.
The rules for emissions trading under the Paris Agreement have taken a long time to agree on. Last year, during COP28 in Dubai, the Article 6 negotiations collapsed. However, this year's meeting was significantly more constructive. Among other things, countries agreed on rules for transparent reporting to the UN, how to manage inconsistent reporting, and to establish an international register for mitigation outcome units provided by the UN.
– Taken together, these decisions provide conditions for emissions trading compatible with the Paris Agreement's long-term goal of net zero emissions to scale, says David Newell.
The Swedish Energy Agency engaged with a range of topics at COP29
Outside the negotiation rooms, there was great interest in discussing the climate and energy transition with the Swedish Energy Agency. The agency participated in a number of seminars and round table and panel discussions focusing on, among other things, energy storage, wind and wave power, industry restructuring, product standards, and financing. Representatives of the Swedish Energy Agency also held a large number of bilateral meetings with international partners.
At COP30, the Swedish Energy Agency had a particular focus on Article 6. Caroline Asserup, Acting Director General at the Energy Agency, signed two bilateral cooperation agreements with Zambia and Nepal.
– With two new bilateral cooperation agreements in place, we now have better conditions to implement mitigation activities that can produce results by 2030, says Sandra Lindström, Head of International Climate Cooperation at the Swedish Energy Agency.
