Countries at the United Nations climate summit in Baku struck a final deal on the broad rules to launch carbon trading markets, almost a decade after being first proposed. The agreement passed at the UN COP29 climate summit late on Saturday night will allow countries and companies to trade credits for cuts in carbon emissions to offset their carbon footprints.
This included on a series of trade-offs between requiring more rigorous accounting and easing the pathway to get the market off the ground, with a rule book on principles for how credits should be traded, counted and checked. Countries and companies took advantage of the prospective launch of the market by signing preliminary deals in recent weeks. Commodity trader Trafigura announced a “pilot” carbon project to help Mozambique develop carbon restoration projects.
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