The COP29 summit in Baku, Azerbaijan, has opened with a major agreement on Article 6.4 carbon credit standards, a pivotal move to enhance the credibility and demand of the international carbon market. This early breakthrough aims to support developing nations by channeling resources for climate action while potentially lowering the annual cost of national climate plans by $250 billion.

COP29 President Mukhtar Babayev hailed this milestone as a “game-changing tool to direct resources to the developing world,” setting a positive tone for the summit. He noted that this is just the beginning, emphasizing that the summit is a “moment of truth” to showcase global commitment to climate goals. With over 70,000 delegates in attendance, COP29 seeks to reach a consensus on fair and ambitious climate finance, with Babayev reminding leaders that public funds can realistically contribute in “the hundreds of billions,” while the total need is in the trillions.

Babayev’s call to action urges nations to submit 1.5-degree-aligned Nationally Determined Contributions (NDCs) and National Adaptation Plans by 2025, stressing that mitigation efforts remain critical. “COP29 cannot and will not be silent on mitigation,” he stated, underscoring that substantial progress is necessary to meet global climate targets.

UN Climate Change Executive Secretary Simon Stiell highlighted the importance of strong financial commitments, declaring that “climate finance is not charity” and warning of severe global consequences if at least two-thirds of the world’s nations are unable to cut emissions quickly.

As COP29 progresses, global attention focuses on whether nations will agree on an ambitious New Collective Quantified Goal (NCQG) for climate finance. Babayev concluded by stressing the shared responsibility in achieving success, stating, “Azerbaijan can build the bridge, but you all need to walk across it.”