Albert Oppong-Ansah (Courtesy: Energy Ministry, New Narratives)
Baku, Nov. 15, GNA - Experts in the global carbon markets are upbeat about the fortunes of Africa regarding the newArticle 6.4 of the Paris Agreement endorsed standards to be led by the United Nations.
Despite about three years delay, the new standards will ensure high-integrity carbon credits, focusing on real, measurable, and verified emissions reductions as well as open up fresh demand for carbon credits.
Unlike Article 6.2 of the Paris Agreement, which permits two countries to trade in credits generated from carbon saving projects Article 6.4 allows a country to trade carbon credits with private entities.
Carbon credits are incentives paid by companies or individuals to entities that remove or reduce greenhouse gas emissions.
Mr Paul Muthaura, the Chief Executive Officer of Africa Carbon Markets Initiatives explained that Article 6.4 would pave way for the private sector to develop and implement projects that saved the environment from pollution and sold as credit.
“We have been waiting for this for long and now its here. It is not a guideline but gives enough clarity on Article 6.4 and it is a great step,” he said.
Mrs Juliana Bempah, a Principal Programme Officer at the Environmental Protection Agency described the latest COP29 decision on Article 6.4 endorsement of new standard to be led by the United Nations as a sigh of relief.
She noted that Ghana’s Framework on International Carbon Markets and none-market approach envisaged and captured operations of Article 6.4 of the Paris Agreement, including the participation, responsibilities and requirements.
Mrs Bempah stated that the latest decision would facilitate its operationalization of that market and enable the private sector directly contribute to the country’s climate plans submitted to the UN.
“It is good for Ghana because we have the required systems in place. We have some project waiting to transition to Article 6.4. We can now authorized emission reduction in that space,” he said.
Parties assembled for the first day of the UN Climate Change Conference achieved a critical early success by reaching consensus on standards for the creation of carbon credits under Article 6.4 of the Paris Agreement.
This will enable climate action by increasing demand for carbon credits and ensure that the international carbon market operates with integrity under the supervision of the United Nations.
Commenting on the outcome, COP29 President Mukhtar Babayev said, “This will be a game-changing tool to direct resources to the developing world. Following years of stalemate, the breakthroughs in Baku have now begun. But there is much more to deliver.”
The COP29 Presidency identified the full operationalization of Article 6 as a key negotiating priority this year. Finalising Article 6 negotiations could reduce the cost of implementing national climate plans by $250 billion per year by enabling cooperation across borders.
The decision is an essential step in achieving that goal and establishes strong momentum for continued progress over the coming two weeks of negotiations.
Ghana is focusing on tapping into the fortunes of the carbon market by creating demand for 24 million tonnes of carbon as part of its climate mitigation measures.
Since 2020, Ghana has signed cooperative agreements with Switzerland, Sweden, Singapore, and South Korea towards mobilising sustainable finance to implement the Nationally Determined Contributions programmes.
It would also create green jobs, facilitate green technology transfer among local businesses and achieve its global targets.
There are about 54 pipeline projects that are currently developed in varying stages of the mitigation activity cycle, eight of which the country envisages to unlock over 850 million dollars (made by catalysing direct investment, commercial value of carbon credit and fees) from these projects.
GNA