Global carbon market & COP 29 SOURCE THE HINDU Countries at COP29 in Baku voted to finalize a global carbon market, allowing trading of carbon credits among themselves. Prices are determined by emission caps. The market stems from the Paris Agreement's Article 6, facilitating bilateral carbon trading (Art 6.2) and global market participation (6.4). Optimism before COP 29 suggested a global carbon trading mechanism and UN-sanctioned carbon credits by 2025. Finalizing Article 6 negotiations could save $250 billion per year by enabling international cooperation. Focus on the New Collective Quantified Goal (NCQG) is crucial as carbon markets help achieve it. NCQG updates the $100 billion annual target for developing countries to adapt and mitigate emissions by 2025, a key outcome of Baku COP.
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