Sultan Ahmed Al Jaber, COP28 President, handing over the presidency to Mukhtar Babayev, COP29 President. @COP29_AZ / X
Climate Change

CSE-DTE at COP29: Event agenda adopted after long delay with some compromises, Article 6.4 rules for carbon market rules accepted, raising concerns

Mukhtar Babayev also proposes Presidency consultations on mountains and climate change and special needs and circumstances of Africa

Rohini Krishnamurthy

The 29th Conference of Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) took off on a rough note. After roughly nine hours of delay, countries finally adopted the agenda for the annual climate event, setting the tone for negotiations over the next two weeks.

This delay “is very common towards the end of climate conferences, not so much on the first day,” Earth Negotiations Bulletin, an independent reporting service on United Nations environment and development negotiations, wrote on X.

The agenda was expected to be adopted earlier in the day. But a disagreement over certain items listed on the provisional agenda meant that the meeting was paused.

At around 7.30 pm Azerbaijan time, COP29 President Mukhtar Babayev declared the adoption of the agenda, with some compromises.

Babayev announced presidential consultations on climate change-related, trade-restrictive unilateral measures, with the outcome expected to be declared at the closing ceremony. This item, however, did not make it into the agenda after China made a request on behalf of the BASIC (Brazil, South Africa, India, and China) bloc of countries, for it to be included on the agenda on November 6, 2024.

The trade-restrictive unilateral measures are a reference to carbon border taxes such as the European Union’s Carbon Border Adjustment Mechanism (EU CBAM), set to come into effect in 2026, according to an earlier report from Down To Earth.

CBAM aims to reduce carbon emissions and put a fair price on the carbon emitted during the production of carbon intensive goods imported into the EU like iron, steel, cement, aluminium and fertilisers based on their greenhouse gas emission intensities. But this is likely to hinder economic growth in developing countries, according to a Centre for Science and Environment Report on CBAM.

In its request, BASIC wrote that Parties should collectively oppose any measures to restrict trade and investment and setting up new green trade barriers, such as unilateral carbon border adjustment measures, with the pretext of addressing climate change. It adds that these measures are incompatible with multilateral rules and the cornerstone principles of the UNFCCC and the Paris Agreement, which is equity and common but differentiated responsibilities and respective capabilities (CBDR-RC), in the light of different national circumstance

Babayev also announced that the United Arab Emirates (UAE) dialogue on implementing the global stocktake (GST) outcomes would remain under the matters relating to finance as proposed in the provisional agenda of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA), a governing body.  He, however, added that he has proposed a footnote with a reassurance that its placement in the agenda “does not prejudge its scope under SBI (Subsidiary Body for Implementation)”. The provisional agenda for SBI placed the UAE dialogue under “matters related to GST”.

The first GST-comprehensive assessment of the world’s progress on climate action—which also puts forward a plan to close implementation gaps to 2030—was adopted at COP28 in Dubai last year. The outcome decided on establishing the UAE dialogue on implementing the GST outcome.

This placement under matters related to finance was the second key sticking point. A synthesis report by the UNFCCC Secretariate released on November 5 notes that some parties called for the UAE dialogue to be listed on the agenda for sessions of the governing bodies under the item “Matters relating to the global stocktake”. The report also noted that some countries expressed the urgent need to reach an agreement on the modalities for the UAE dialogue at COP29.

Countries have provided five options for the UAE dialogue. The first option is a focus on climate finance and other means of implementation and support for implementing the global stocktake outcomes. The second is financial support from developed to developing countries and tracking the delivery of the NCQG. The third is implementation of all global stocktake outcomes. Fourth, a focus on all global stocktake outcomes with a view to informing Parties in updating and enhancing their action and provision of support, and finally, all global stocktake outcomes with a particular focus on finance and other means on implementation.

The COP29 president also proposed Presidency consultations on Mountains and climate change and special needs and circumstances of Africa.

In a controversial move, the COP President noted that states have reached a consensus on rules on Article 6.4 of the Paris Agreement, which will allow countries to trade reductions in carbon to achieve their commitments under the Paris Agreement.

“We invite the CMA to consider draft decision [on article 6.4].  The work of CMA will continue on contact group to provide further guidance to CMA,” he said.

This comes hours after the President proposed a draft decision on rules, modalities and procedures for the mechanism established by Article 6, paragraph 4, of the Paris Agreement on November 11. It took note of adoption of two documents by the supervisory body, a technical team mandated to oversee Article 6.4. The Body requested the CMA to endorse these standards and provide any additional guidance.

In October 2024, the Supervisory Body adopted the rules related to methodologies (calculating emission reductions) and carbon removal (to remove carbon dioxide from the atmosphere). This move bypasses States’ ability to revise and strengthen the standards, according to the Center for International Environmental Law, a public non-profit law organisation based in the US.

“States’ oversight is all the more critical as the Supervisory Body’s efforts to get this done has resulted in risky rules that will lead to human rights violations and environmental harm,” Erika Lennon, CIEL’s Senior Attorney, said in a statement.

While States cannot undo this move, they can still partially correct the wrong by giving strong guidance to the Supervisory Body that ensures further rules are adopted in line with science, human rights, and international law, she added.