The 29th Conference of the Parties (COP29) in Baku, Azerbaijan was a pivotal moment for global climate action. The “Finance COP” brought optimism and urgency. It was clear that climate finance, methane mitigation, and carbon market mechanisms are the key tools in the fight against climate change – aligning with our mission to fight climate change through high-quality climate protection projects. Our managing director Angelika Hilger and Head of Carbon Strategies & Innovation Jacob Bourgeois travelled to Baku and have returned with the following insights:

Photo: UN Climate Change – Kiara Worth

We must balance ambition and reality in climate finance

One of the key outcomes was the New Collective Quantified Goal on Climate Finance (NCQG), which commits richer countries to $300 billion per year by 2035. While this figure is a step in the right direction, it is not enough to truly empower vulnerable countries. Instead, all parties must drive innovation and high-quality projects that complement adaptation efforts, especially in regions where funding gaps remain. Joint efforts can amplify the impact of existing funds by prioritising high-impact, community-based solutions.

After years of debate, new decisions regarding Article 6

COP29 has delivered a breakthrough on Article 6 able to accelerate the potential of the carbon markets to reduce emissions and benefit people and the planet. Article 6 of the Paris Agreement outlines how nations can trade mitigation units in voluntary collaboration to achieve their climate goals. Under this article, the Paris Agreement Crediting Mechanism (PACM) is a carbon credit trading system governed by the United Nations (UN) where private and public actors can buy and sell carbon credits. After years of negotiation, the rules for operationalising this system are now in place. The aim is to establish a system that involves high-quality and effective climate projects. Efforts have focused on simplifying approval and tracking processes to reduce complexity and ensure transparency, making the system more accessible and credible for countries and businesses.

Photo: UN Climate Change – Kamran Guliyev

Broader acceptance and support by the UN for carbon trading, transparency, and safeguards

In addition to progress on Article 6.4, advancements were made on Article 6.2, enabling countries to meet their climate targets through bilateral or multilateral cooperation. This approach enables direct country-to-country trading of credits to reduce emissions, known as Internationally Transferred Mitigation Outcomes (ITMOs). The United Nations will officially recognise these trades, ensuring they are transparent and properly reported. To protect all parties involved such as local communities, the agreement includes safeguards including detailed disclosure about where the carbon credits come from, how they are monitored and used. Importantly, the agreement acknowledges the role of Indigenous Peoples and ensures their representatives are involved in the process. It also includes agreements on how to address any inconsistencies in project documentation and technical reviews, aiming to establish a reliable market with consistent quality standards. However, because countries have different views on issues like transparency and how credits should be used, further discussions are needed to fine-tune this framework. These frameworks will also significantly shape corporate carbon strategies and compliance, marking a crucial step in leveraging carbon markets to combat climate change effectively.

Photo: UN Climate Change – Kamran Guliyev

What does this mean for us?

COP29 reaffirmed the importance of technology-driven and nature-based solutions. While some Article 6.4 methodologies may require longer timelines to operationalise, other areas such as sustainable agriculture and afforestation are gaining momentum. Those are all areas that align with our expertise and potential for significant impact, so we keep putting our efforts into those. In addition, the focus on methane mitigation aligns with our mission to deliver high-impact projects. Tackling methane emissions is one of the fastest ways to slow down climate change. By exploring projects in this area, we can contribute to rapid and measurable climate benefits.

COP29 and VCP: A shared vision for climate action

COP29 highlighted the interconnectedness of finance, accountability, and innovation in tackling the climate crisis. For us, the conference was a call to action – a moment to reaffirm our commitment to delivering effective climate solutions. We used COP29 not only as an opportunity to engage with global stakeholders but also to refine our strategies in response to a rapidly changing marketplace. While we recognise that global efforts such as the $300 billion climate finance target are not yet enough, we remain optimistic about the transformative potential of mechanisms such as Article 6. These instruments can drive meaningful change, especially when combined with our focus on high-quality projects and innovative approaches.

Since we are dedicated to initiating and supporting high-quality climate protection projects worldwide, our commitment extends beyond strategic planning; we actively provide financial backing to ensure these initiatives are successfully launched and sustained. Our approach aligns with the broader goals discussed during COP29, emphasising the importance of actionable and financially supported climate solutions. While we are committed to making meaningful contributions, we remain mindful of setting realistic expectations within the Voluntary Carbon Market (VCM) community. Our focus is on delivering tangible results through carefully selected and well-supported projects, ensuring that our efforts lead to measurable climate benefits.