COP29 agrees to set up carbon market post decision on Day 1

India committed to reduce emissions intensity by 45% by 2030, create carbon sink of 2.5 to 3 billion tonnes of additional forests

- Puja Das

A global carbon market will be set up after a landmark decision on the first day of the global climate summit in Baku, at the 29th session of the Conference of the Parties (COP29) to the UN Framework Convention on Climate Change (UNFCCC).

The market will allow nations to trade carbon credits—certified reductions of carbon emissions—whose prices are determined by emission caps imposed by nations. The market follows from Article 6, a section in the Paris Agreement.