CoP 29’s agreement on carbon markets under Article 6 of the Paris Pact

Source: The post CoP 29’s agreement on carbon markets under Article 6 of the Paris Pact has been created, based on the article “CoP’s hasty decision on carbon credits could do more harm than good” published in “Indian Express” on 14th November 2024

UPSC Syllabus Topic: GS paper 3- Environment

Context: The article discusses CoP 29’s agreement on carbon markets under Article 6 of the Paris Pact. It sets rules for emissions trading but faces criticism for ignoring double accounting, project risks, and community impacts, risking a repeat of Kyoto Protocol failures.

For detailed information on India’s Opportunities and Challenges in Carbon Markets read this article here

What is Article 6 of the Paris Pact?

1. Article 6 enables carbon markets where polluting entities can offset emissions by purchasing credits from less polluting ones.
2. The aim is to reduce the cost of implementing Nationally Determined Contributions (NDCs) by $250 billion annually, according to Azerbaijan at CoP 29.

For detailed information on Article 6 of the Paris Agreement read this article here

What was agreed at CoP 29 in Baku?

1. Countries reached a consensus on methodologies for carbon market standards, resolving transparency concerns.
2. The agreement seeks to streamline emissions trading and clarify operational mechanisms.

What criticisms does the agreement face?

1. Experts say the decision was rushed, with inadequate deliberation on key issues.
2. It does not address “double accounting,” where emissions reductions are counted by multiple parties.
3. It ignores risks like carbon reversal in natural sinks (e.g., forests) and displaced community livelihoods from green projects.

Why are carbon markets controversial?

1. Historically, carbon markets like the Clean Development Mechanism under the Kyoto Protocol failed due to a lack of trust among parties.
2. Critics fear developed countries may use offsets to avoid genuine decarbonization, shifting the burden to developing nations.

Question for practice:

Discuss the criticisms faced by the agreement on carbon markets under Article 6 of the Paris Pact reached at CoP 29 in Baku.