Singapore and New Zealand co-chaired the negotiations on Article 6 of the Paris Agreement
Minister of Climate Change Simon Watts announced that delegates at the United Nations Climate Change Conference (COP29) in Baku, Azerbaijan reached a global agreement on Article 6 of the Paris Agreement, establishing the framework for international carbon markets.
The decision, supported by all 196 participating countries, concludes years of negotiations on one of the most technical and complex aspects of climate policy.
The discussions were co-chaired by Singapore’s Minister for Sustainability and the Environment, Grace Fu, and Minister Watts. The agreement establishes a functional system for trading carbon credits, intended to facilitate investments in emissions-reducing initiatives and support international collaboration toward climate goals.
“International carbon markets under the Paris Agreement are now fully operational,” said Minister Watts. This decision signals opportunities for investments in activities that reduce emissions and enable countries to work together to meet their climate targets, said Watts.
The finalised framework is expected to support renewable energy and sustainable projects globally while contributing to emissions reductions. Minister Fu highlighted the significance of the agreement in building confidence in carbon markets. The decisions on Article 6 at COP29 will provide the necessary framework for trading high-quality carbon credits, Fu stated. This is critical to mobilise private capital for global mitigation efforts and support efforts to limit global temperature rise to 1.5 degrees, Fu added.
Both ministers noted the extensive consultations conducted with participating nations and acknowledged the importance of international cooperation in reaching this outcome. Singapore and New Zealand are committed to the Paris Agreement and are honoured to have supported the presidency in achieving consensus on this key outcome, Fu and Watts said.
According to Watts, while technical rules for implementing some aspects of Article 6 will be finalised by 2025, the agreement represents a significant step forward for proponents of carbon trading. It is expected to strengthen global efforts to transition to a low-emissions economy and facilitate the implementation of climate solutions in line with the Paris Agreement.
