ClearBlue's team in Baku will be posting regular updates from COP29, posted here in reverse chronological order:
November 20
Leaving Baku: Reflections from COP29 Azerbaijan
As I leave Baku, I reflect on the incredible energy, ambition, and complexities that COP29 has brought to the global climate stage. The experience has been one of hope, rooted in the determination of nations to step up with renewed commitments like the ambitious NDC of Brazil and the UK. These commitments remind us of what is possible when climate action is treated as a pathway to economic and social transformation.
However, the pressing need for climate finance remains a recurring theme. While the desire for solutions is shared across all parties, differences persist over approaches, priorities, and implementation mechanisms.
Today’s Updates:
1️⃣ Progress on Article 6.2:
The updated text clarified cooperative approaches with three types of authorizations—for the approach, ITMOs, and participating entities. ITMOs with unresolved inconsistencies cannot be used for NDCs or international mitigation until resolved. While the anticipated two-tier registry system remains absent, discussions are ongoing.
2️⃣ EU Adopts CRCF:
The EU’s adoption of the Carbon Removal Certification Framework (CRCF) establishes robust standards for scaling carbon removal projects. With methodologies under development, this move signals a focus on verifying and accelerating high-quality removals.
3️⃣ G20 Communiqué on COP29:
The G20 reaffirmed its support for the New Collective Quantified Goal (NCQG) and emphasized the urgency of scaling climate finance. However, gaps remain, such as the absence of commitments to phase out fossil fuels.
4️⃣ Sweden-Nepal Agreement and Market Momentum:
Swedish Energy Agency signed a bilateral agreement under Article 6.2 with Nepal to finance climate mitigation projects, following a similar deal with Namibia earlier. These agreements reflect the increasing momentum around cooperative approaches. The recent announcement by Norway- Klima- og miljødepartementet further deepens the market, creating opportunities for innovation and scaling along with initiative by GGGI. At ClearBlue Markets, we’re tracking these developments closely, aligning them with insights from our recently launched report on global carbon market trends.
Spotlight on Uganda
✨ A personal highlight of my day was speaking at a session organized by Science, Technology and Innovation Secretariat of Uganda to discuss scaling carbon projects in the country by developing innovative financing and capacity building solutions.
COP29 has been a powerful reminder of what is possible when ambition meets collaboration. Progress on NDCs, Article 6.2 and 6.4, and frameworks like the CRCF signals a transformative path forward for carbon markets and climate finance.
As I leave Baku, I remain optimistic that the momentum built here will drive tangible, equitable solutions ahead to the next COP.
~ submitted by Vaibhav Jain, Director Offset Projects
November 19
COP29 Day 9: Exciting developments from Baku, Azerbaijan, today:
1️⃣ Breakthrough on Article 6.8
COP29 has successfully concluded negotiations on Article 6.8 of the Paris Agreement, promoting international cooperation through non-market approaches to implement national climate plans, including mitigation, adaptation, and sustainable development. This milestone brings the full operationalization of Article 6 closer, leaving only parts of Articles 6.2 and 6.4 for final agreement.
2️⃣ G20 Leaders Drive Climate Finance
G20 leaders have issued a clear mandate: negotiators must deliver a new global climate finance goal at COP29. This critical reform aims to address escalating climate impacts and debt crises, driving forward financial reforms for stronger climate action and accelerating the transition to a clean-energy, climate-resilient global economy.
3️⃣ Norwegian Global Emission Reduction (NGER) Initiative
Norway is leading global climate action with the $775 million NGER program, including a $100 million facility under GGGI, to achieve 2030 climate neutrality. Piloted with the World Bank, the initiative focuses on capacity building, program development, and financing in countries like Zambia, Benin, Senegal, and
Jordan. A Climate Catalyst Fund will further scale impact under
Article 6 of the Paris Agreement.
4️⃣ Singapore-Zambia Partnership
A new MoU under Article 6.2 of the Paris Agreement between Singapore and Zambia sets the stage for a legally binding carbon credit transfer agreement. With Zambia’s framework ready and legislation forthcoming, this collaboration strengthens bilateral efforts in carbon markets.
5️⃣ ClearBlue Launches CAC-ITMO Report
ClearBlue Markets unveiled its CAC-ITMO report, analyzing supply, demand, and pricing for carbon credits with corresponding adjustments for use by countries (or their entities) under NDCs and by airlines under CORSIA Phase 1. While the report excludes the latest bilateral agreements, ClearBlue plans to update it periodically to reflect evolving trends and agreements in carbon markets. (See our post here: https://https://lnkd.in/g5SBxfda)
COP29 is shaping up as a pivotal moment for international collaboration on climate action. Let’s build on this momentum for a sustainable and resilient future!
~ submitted by Vaibhav Jain, Director Offset Projects
November 18, 2024
As I take over from my colleague Ivan Cosentino, I’ve entered an action-packed Week 2 of COP29. Here's how the week is shaping up:
ASEAN Carbon Market Collaboration
A historic Memorandum of Collaboration was signed among five ASEAN nations—Malaysia, Indonesia, Singapore, Thailand, and the broader ASEAN region—marking a significant step toward regional carbon market integration. The ASEAN Common Carbon Framework aims to enhance high-quality carbon credit supply, promote market interoperability, and align with international standards, demonstrating the region's commitment to climate resilience.
UNFCCC and UNEP Reports Sound the Alarm
The UNFCCC NDC Synthesis Report and UNEP Emissions Gap Report highlight that current climate plans are projected to lead to a 2.7°C temperature rise by the end of the century, far exceeding the 1.5°C target. Despite this, the reports indicate that limiting warming to 1.5°C remains achievable with immediate and decisive action, underscoring the urgency of accelerated global efforts.
COP29 Presidency’s Roadmap for Progress
The COP29 Presidency has outlined a structured plan to address critical issues, focusing on ministerial consultations, technical work, and presidency dialogues. Climate finance, mitigation, and adaptation are key priorities this week. Notably, Ministers Grace Fu Hai Yien of Singapore and Simon Watts of New Zealand are leading Article 6 negotiations, addressing registry functionalities under Article 6.2 and connecting Party registries with the mechanism under Article 6.4. These discussions aim to finalize a balanced outcome by the end of the week.
UN Climate Change Executive Secretary Call for Unity
The UN Secretary has emphasized the need for collective action, highlighting that climate finance is not charity but a mutual responsibility. He pointed out that while developed nations pledged $100 billion annually to support developing countries, actual disbursements have consistently fallen short. With time running out, the call to accelerate negotiations and deliver results has never been more urgent.
Photo credit: UN Climate Change | Kiara Worth.
The Path Forward
The progress made this week at COP29 will determine the course of global climate action in the years to come. With critical discussions underway, nations must rise to the challenge to secure ambitious outcomes that meet the climate crisis head-on.
November 15, 2024
I'm wrapping up my COP29 experience in Baku as Day 5 comes to a close. My colleague Vaibhav Jain will take over ClearBlue Markets' coverage from here, so be sure to follow him for the latest updates!
💰 The NCQG Negotiations: Progress is gradual, and consensus won't be reached overnight. The initial proposal from the G77 stands at $1.3 trillion, while developed countries are advocating for a broader base of contributors. We can expect significant back-and-forth discussions in the days to come before an agreement is achieved.
🌿 Beyond Carbon – Adaptation and Resilience: Some promising developments include major development banks, like the World Bank, pledging to ramp up climate financing to $120 billion by 2030 to support low- and middle-income countries. The Resilience Hub’s focused, thematic approach is fostering collaborative solutions, while progress on the Sharm-El-Sheikh Adaptation Agenda aims to make 4 billion people more resilient by 2030. Notably, indigenous leaders are championing inclusive representation, calling for their perspectives to be integrated into decision-making and adaptation strategies.
🔔 Spotlight on Article 6.4: The Article 6.4 mechanism has been officially named the PACM (Paris Agreement Crediting Mechanism), with technical teams making a concerted push to overcome the disappointments of the past two COPs. Could the third time be the charm? If successfully implemented, PACM could channel an estimated $250 billion toward combating climate change.
💎 NEW REPORT ALERT: Early next week, ClearBlue Markets will release a comprehensive report on the structure of Corresponding Adjusted Credits, covering Article 6.2 and CORSIA. This report will also provide insights into supply and demand forecasts and price projections. Stay tuned!
November 13, 2024
As Day 3 of COP29 ends in Baku, Azerbaijan, I'd like to share some key takeaways:
🎯 Brazil announced a new emissions reduction target, pledging to reduce emissions by 50% by 2035. This announcement reinforces its role in global climate action and builds momentum towards COP30 to take place next year in Belém, Párá.
🎯 The United Kingdom has also raised the bar, setting yesterday a new goal to reduce emissions by 81% by 2035, surpassing its previous target of 78%. This strengthened target aligns with the UK's leadership in addressing the climate crisis and underpins its commitment to achieving net-zero emissions.
These targets will be included in the new NDCs to be issued before their deadline by February 2025.
🛫 Argentina's delegation is preparing to leave COP29 today, raising questions about their engagement in the climate negotiations. While the reasons for their departure have yet to be officially disclosed, it has sparked discussions about Argentina's future role in shaping global climate policy.
❗ These developments highlight the urgent need for continued international cooperation and more ambitious climate action. While smaller (yet important) breakthroughs are occurring, the key question over the next 10 days remains whether an agreement will be reached on the long-awaited issue of financing mechanisms and updated targets.
💡 Don't hesitate to drop a message to meet for ☕ to discuss how we may support your carbon-related goals at ClearBlue Markets!
~ submitted by Ivan Cosentino, Director Offset Projects
November 11, 2024
🌍 Exciting News from COP29 in Baku!
The long-awaited rules for CarbonMarkets under Article 6 of the Paris Agreement have finally been approved! This landmark decision establishes a UN-backed mechanism to streamline and govern international Climate Finance— a crucial step toward effective global collaboration on climate action.
Let’s hope that divisions within the environmental community don’t hinder this progress. Now is the time to come together and support this urgently needed framework to drive meaningful, cross-border climate solutions.
~ submitted by Vaibhav Jain, Director Offset Projects
November 11, 2024
Day one at COP29 kicked off with powerful speeches that set the tone for what’s at stake and what’s possible in our fight against climate change. Here are some key themes that resonated today:
1️⃣ A time to enhance Ambition and enable Action
As we approach a 3°C scenario, the stakes have never been higher, forcing us to double down on decarbonization efforts and reach consensus on key aspects such as Article 6 implementation sooner rather than later.
2️⃣ The Role of Diversity
The opening remarks celebrated the diverse voices coming together at COP29. Leaders acknowledge that a global problem needs solutions driven by every country, every industry, and every community.
3️⃣ Climate Justice as a Core Priority
Many speeches emphasized that this isn’t just an environmental crisis, but a humanitarian one. The commitment to support vulnerable nations and communities resonated firmly throughout the day.
~ submitted by Ivan Cosentino, Director Offset Projects