International carbon-market rules agreed at COP29 in Baku must move from diplomatic agreement to practical implementation, Azerbaijani presidential climate envoy Mukhtar Babayev said.
Speaking at COP31 in Antalya, Babayev called for a focus on measurable emissions reductions, climate-finance mobilization, transparent transactions and benefits for countries hosting carbon-market projects, Vesti Baku reported.
What Countries Agreed at COP29
Article 6 of the Paris Agreement governs international cooperation and trading in carbon credits. At COP29, countries agreed on core rules for transactions between governments and for a centralized mechanism supervised by the United Nations.
The framework includes registries to track transferred carbon units, technical reviews of projects and requirements intended to protect the environment and human rights.
The mechanism is also designed to give developing countries access to new sources of climate finance by allowing verified emissions-reduction projects to generate tradable credits.
Potential Global Savings of $250 Billion a Year
During COP29, Azerbaijan’s conference presidency estimated that a fully functioning carbon market could reduce the global cost of implementing national climate plans by as much as $250 billion a year.
The figure refers to potential worldwide savings from more efficient emissions reductions. It is not a projection of revenue for Azerbaijan.
Supporters of Article 6 argue that international trading can direct financing toward projects that cut emissions at the lowest cost. Critics and climate advocates have stressed that strong accounting and oversight are needed to prevent double counting and ensure that credits correspond to real reductions.
COP31 Focuses on Implementation
Babayev linked the implementation of the COP29 decisions to wider work on energy and transportation. COP31 participants are discussing commitments related to energy-storage systems, electricity grids and a transition toward cleaner transport.
His statement set out a priority for the COP31 negotiations. It did not announce a newly completed international agreement or confirm that the carbon-market system is already fully operational.
The next phase will depend on countries establishing registries, approving eligible projects and applying common reporting and review standards.