COP29: after nine years, Article 6 is finally operational

At COP29 in Baku (Azerbaijan), in November 2024, States adopted the final rules of Article 6 of the Paris Agreement, nine years after its signature. The presidency spoke of "full operationalisation" of the international carbon market.

Two mechanisms, one architecture

Article 6.2 governs bilateral exchanges between States, via ITMOs (Internationally Transferred Mitigation Outcomes). Article 6.4 creates a centralised carbon market under UN oversight, the Paris Agreement Crediting Mechanism (PACM). On the very first day of COP29, a set of standards on methodologies and removals was adopted.

Momentum already under way

In early 2024, Switzerland and Thailand had become the first countries to realise a cooperative approach, via the KliK Foundation purchasing ITMOs from a Thai project. By COP29, 91 bilateral agreements had already been established among 56 nations. On the summit's sidelines, several deals were signed — Norway with Benin, Senegal, Jordan and Zambia; Zambia with Singapore.

Persistent criticism

Not everyone welcomed the agreement. NGOs such as Carbon Market Watch flagged a "complex" system and transparency rules judged insufficient, with few consequences for non-compliance. The challenge, according to several experts, is not so much supply as demand: less than one billion dollars was spent on voluntary credits in 2024.

"The end of the beginning": Article 6 is now operational, but its credibility will be decided by the rigour of its implementation.