COP29 gains momentum with consensus on creating carbon credit standards, India aims to complete work on carbon market | India News – Times of India

BAKU: As countries have reached a consensus on the norms for creating carbon credits on the larger issue of setting up carbon markets, India on Tuesday indicated that it expects to conclude work on the issue in the ongoing meeting. COP29 and called for ‘adequate, predictable and accessible’ financing under the new post-2025 climate financing goal. The comments came as a group of developing countries (G77, including India and China) rejected an existing text on financial targets because it lacked clarity on both quantum and financing sources.
Against the backdrop of such a development on the second day of the UN climate talks, Indian negotiators said that as the New Collective Quantified Goal (NCQG) on climate finance is a key element in the discussions at the COP29, India would continue to speak out on the need to adequate financing for the Global South (developing countries).
“COP29 must ensure that climate finance is adequate, predictable, accessible, grant-based, low-interest and long-term,” said an Indian negotiator. His comments reflect the sentiments of developing countries, represented by the G77 grouping and China, who want the NCQG text to clearly specify an amount of at least $1.3 trillion per year from developed to developing countries, with a significant provision component for adaptation, mitigation, and loss and damage.
“Currently, many discussions about climate finance focus on investments in mitigation measures. COP29 must maintain balance and emphasize the urgency of addressing adaptation needs, especially for vulnerable communities in developing countries,” the negotiator said, expressing India’s position on NCQG. And carbon market – two issues considered as benchmarks to assess the outcome of this round of the climate conference. India has already sought a clear definition of climate finance, as reported by TOI on Monday, to bring clarity to the entire issue.
Article 6 of the Paris Agreement deals with the global carbon market problem. On Monday evening, countries agreed on paragraph 6.4 of the article, which will enable climate action by increasing demand for carbon credits and ensuring that the international carbon market functions with “integrity under the supervision of the United Nations.”
“This will be a game-changing tool to channel resources to developing countries. After years of impasse, breakthroughs in Baku have now begun. But there is much more to achieve,” said COP29 President Mukhtar Babayev, citing the full operationalization of Article 6 as a key negotiating priority this year. It is believed that the conclusion of the Article 6 negotiations could reduce the cost of implementing national climate plans by $250. billion per year by enabling cooperation across borders.
On the carbon market, Indian negotiators said COP29 should be able to agree to a mechanism that uses market-based instruments (such as carbon credits) to incentivize low-carbon development. “Countries must establish clearer rules for global carbon markets that do not create unfair barriers to trade or development. Instead, the technological and financial gaps in supporting developing countries need to be addressed,” a negotiator said while talking about India’s position.