[Source: Reuters]

Countries at the two-week COP29 climate summit have given the go-ahead to carbon credit quality standards which are critical to launching a U.N.-backed global carbon market that would fund projects that reduce greenhouse gas emissions.

The green light was an early deal on the opening day of the U.N. conference in Baku, Azerbaijan.

The deal on Article 6.4 of the Paris Agreement could allow a U.N.-backed global carbon market, which has been years in the making, to start up as soon as next year, one negotiator said.

Carbon credits theoretically allow countries or companies to pay for projects anywhere on the planet that reduce CO2 emissions or remove it from the atmosphere and use credits generated by those projects to offset their own emissions.

Examples of projects could include cultivation of CO2-absorbing mangroves, or distribution of clean stoves to replace polluting methods of cooking in poor rural communities.

COP 29 President Mukhtar Babayev assured the delegates that the proposed decision on the annual reports of the supervisory body and the Article 6.4 standards will not conclude their work.

“This decision will, in no way prevent parties from providing further guidance to the supervisory body at the CMA. Rather, the work of CMA will continue under the contact group in which parties can consider any further guidance to the supervisory body. Furthermore, let me confirm that discussions on Article 62 will continue to address the mandates provided by CMA.4 dot four, including work to develop recommendations for consideration and adoption at CMA.6.”

The market could be one route for U.S. companies to keep participating in global efforts to address climate change, even if President elect Donald Trump were to quit the Paris accord.

If that happens, U.S. firms can still buy credits from the U.N.-backed market to meet their voluntary climate targets.

While the standards approved in Baku are aimed at allaying concerns that many projects do not deliver the climate benefits they claim, campaigners said they fell short in areas including protecting the human rights of communities affected by projects.