As the global community intensifies efforts to combat climate change, COP29 marked a significant step forward in shaping the future of international carbon markets. At the heart of these discussions was Article 6 of the Paris Agreement, a cornerstone for enabling international cooperation on emissions reduction and unlocking climate finance. The United Arab Emirates (UAE), with its growing commitment to sustainability and carbon market development, stands to both contribute to and benefit from these changes. The UAE Carbon Alliance and the UNFCCC Regional Collaboration Center for the Middle East and North Africa (MENA) and South Asia (SA) collaborated on this article to highlight key COP29 outcomes and their implications for both the global and regional carbon market landscape.
What is Article 6 of the Paris Agreement?
Article 6 of the Paris Agreement provides a framework for voluntary international cooperation to reduce emissions and support sustainable development. It enables countries to meet their climate targets through:
1. Article 6.2, which allows countries to trade emissions reductions (ITMOs) via bilateral or multilateral agreements.
2. Article 6.4, a high-integrity UN-supervised crediting mechanism that issues carbon credits for verified mitigation outcomes.
3. Article 6.8, which promotes non-market approaches such as knowledge-sharing, capacity-building, and climate finance.
Together, these components of Article 6 help countries cooperate on climate action while preserving environmental integrity and transparency.
COP29 Outcomes on Article 6
At COP29 in Baku, countries finalised key building blocks to make carbon markets fully operational under the Paris Agreement, completing nearly a decade of work.
Article 6.2 – Country-to-Country Trading
Countries adopted final guidance clarifying how they authorise the transfer of carbon credits and how registries tracking trades will operate. Technical expert reviews were strengthened to ensure environmental integrity and transparency from the start of any transaction.
For a detailed explanation of accounting and reporting under Article 6.2, you can consult the UNFCCC Article 6.2 Reference Manual (PDF).
Article 6.4 – The Paris Agreement Crediting Mechanism
Significant progress was made in finalising the centralised carbon crediting mechanism under Article 6.4, with countries agreeing on key standards for the Paris Agreement Crediting Mechanism at COP29. Developing countries, particularly in the MENA region, stand to benefit from new flows of finance and enhanced market access by aligning projects with international standards.
Since COP29, the Paris Agreement Crediting Mechanism is advancing toward full operationalisation: an interim registry is already in place while development of the permanent registry continues. In early 2025, the first two projects were approved for transition from the Clean Development Mechanism (CDM), and the first independent auditor was accredited. The first issuance of credits is expected by the end of 2025.
The finalisation of clear rules under Article 6 ensures that international collaborations align with the goals of the Paris Agreement. For countries that are new to Article 6 implementation or are still developing regulatory frameworks, these standardised rules provide a solid foundation for carbon trading projects, helping to increase investor confidence and market participation.
Learnings & Next Steps
With the mechanisms of Article 6 now in place, the focus shifts to implementation. The global response to Article 6 has been overwhelmingly positive, with 83% of Parties to the Paris Agreement stating that they either plan to or are considering participating in voluntary cooperation mechanisms under Article 6. According to the 2024 NDC Synthesis Report by the UNFCCC Secretariat, 52% of countries intend to use cooperative approaches under Article 6.2, while 34% plan to engage with the Article 6.4 mechanism, and 25% express interest in voluntary cooperation more broadly.[1]
However, the journey toward implementing Article 6 has revealed several critical challenges and opportunities. The complex technical nature of Article 6 means that many countries require targeted capacity-building initiatives and technical assistance at the national level. This includes training policymakers, building regulatory expertise, and establishing institutional frameworks to support participation in international carbon markets. Countries also need to develop measurement, reporting, and verification (MRV) systems to ensure transparency and compliance with international standards.
As different nations progress, the ability to exchange best practices, learn from early adopters, and leverage regional cooperation will be crucial in accelerating implementation, underscoring the importance of collaboration and knowledge-sharing amongst nations and systems. Developing countries, for example, require immediate support in establishing carbon market frameworks, curating project pipelines, and addressing emerging implementation challenges to ensure smooth integration into global carbon trading mechanisms.
For the private sector, readiness is a major concern. While interest is high, many companies lack the regulatory clarity and technical expertise needed to engage effectively. Governments must create enabling environments that encourage private sector involvement by developing clear policies, investment incentives, and market infrastructure that align with international best practices. Additionally, ensuring continuous engagement and collaboration between governments, businesses, and non-state actors will be essential to enhancing carbon market mechanisms and achieving Nationally Determined Contributions (NDC) targets in a meaningful and scalable way.
Finally, global collaboration must remain a priority. The success of Article 6 depends on harmonised implementation, well-functioning registries, and strong governance mechanisms. By focusing on framework development, regulatory clarity, and ongoing engagement between governments and stakeholders, countries can maximise the potential of carbon markets, drive climate finance, and accelerate progress toward their NDC goals.
[1]https://unfccc.int/process-and-meetings/the-paris-agreement/nationally-determined-contributions-ndcs/2024-ndc-synthesis-report#Targets
Considerations for the UAE
The UAE is well-positioned as a key player in global climate action, leveraging its leadership in sustainability and clean energy innovation. With Article 6 now operationalised, the UAE has the opportunity to deepen its engagement in international carbon trading, strengthen regional cooperation, and drive investments in emissions reduction projects.
To maintain competitiveness, the UAE should ensure that its carbon credits are of high quality and aligned with international standards, whether through national or regional carbon trading requirements. As the UAE develops its Article 6 readiness, targeted support in capacity-building, institutional coordination, and digital infrastructure will be key. Governments will need to prioritise understanding the interplay between Article 6.2 and 6.4, particularly how corresponding adjustments and reporting obligations impact compliance.
Additionally, ensuring that carbon markets are fully integrated into NDC planning will require institutional coordination and cross-sector collaboration. This involves enhancing dedicated teams or task forces, providing capacity building for stakeholders, and accelerating the adoption of digital infrastructure systems at the national level. As a result, these efforts would strengthen the UAE’s capacity to effectively engage in global carbon trading.
Countries and stakeholders worldwide are further encouraged to familiarise themselves with UNFCCC’s project development templates and to integrate them into their carbon market strategies. Whether engaging in bilateral trades under Article 6.2 or participating in Article 6.4 mechanism, these templates provide a clear pathway to ensure compliance, transparency, and environmental integrity.
Through public-private collaboration between government entities and businesses for greater transparency and verifications for carbon credits, the UAE’s private sector also stands to significantly benefit from Article 6, especially given the country’s strong presence in energy, aviation, and hard-to-abate industries. Identifying mechanisms to encourage private sector participation through incentives and clear regulatory frameworks is key to ensuring the success of Article 6 implementation across the nation.
For the UAE, this is a crucial element as it provides greater flexibility in shaping emissions reduction strategies while continuing to contribute to global climate efforts. In its latest NDC 3.0 submission, the UAE recognises the importance of Article 6.8. As stated on page 41:
"The UAE also advocates for non-market approaches under Article 6, paragraph 8 of the Paris Agreement. MOCCAE is spearheading efforts to implement these approaches, which aim to facilitate climate action through international cooperation, with a focus on sustainable development and poverty eradication—underscoring the UAE’s holistic approach to addressing climate change.”[1]
[1] https://unfccc.int/sites/default/files/2024-11/UAE-NDC3.0.pdf
Standardised Authorisation Templates for Article 6.2 and Article 6.4
To further support countries in streamlining their participation in international carbon markets, the UNFCCC Climate Change Secretariat has released standardised authorisation templates for:
1. Article 6.2 (Voluntary adoption by countries)
2. Article 6.4 (Mandatory for authorising emission reductions from projects or Programme of Activities (PoAs) Programs of Activities (PoAs)
These authorisation templates are set to help facilitate the operationalisation of Article 6, enhance confidence in carbon markets by promoting accountability and oversight, and enable better tracking of emissions reductions and mitigation outcomes.
As the carbon market ecosystem expands, standardised processes like these templates will be crucial in helping countries navigate carbon crediting mechanisms, enhance transparency, and accelerate the implementation of their NDC.
In addition to following the standardised templates, for any mitigation activity that was developed under the Article 6.4 mechanism, project participants (proponents/owners) must submit the prior notification through the designated interface within 180 days from the investment decision, using the following forms:
1. For A6.4 projects - A6.4-FORM-AC-002
2. For A6.4 programme of activities - A6.4-FORM-AC-013
3. For A6.4 component projects CPs which are part of - A6.4-FORM-AC-014
Furthermore, any CDM project activities transitioning to the Article 6.4 mechanism must obtain and submit approval from host Parties by 31 December 2025 to the UN Climate Change Secretariat.
About the UAE Carbon Alliance:
The UAE Carbon Alliance is a coalition of over 55 organisations working to advance a high-integrity carbon market and climate technology ecosystem in the UAE. Founded in 2023 by TAQA, Mubadala, Masdar, and First Abu Dhabi Bank, the Alliance promotes carbon trading as a key tool for decarbonisation and achieving net zero emissions by 2050. It focuses on driving education and awareness, demand aggregation and policy advocacy for carbon markets and offset projects in the UAE. The UAE Independent Climate Change Accelerators (UICCA) serves as the secretariat of the Alliance, coordinating efforts to position the UAE as a global leader in carbon finance and climate action. Open to wider participation, the Alliance continues to grow, welcoming new organisations aligned with its mission and goals.
About the UAE Independent Climate Change Accelerators (UICCA):
UAE Independent Climate Change Accelerators (UICCA) is a pioneering organisation dedicated to accelerating climate action by growing the green economy. Through its unique convening power, UICCA connects people, insights, and technologies to transform complex sustainability challenges into actionable solutions. As a team of climate experts, UICCA delivers impact through three core pillars: Advisory, Accelerators, and Alliances.
UICCA provides data-driven research, policy guidance, and capacity building to facilitate informed climate action decisions. Through its accelerator programmes, UICCA creates dedicated pathways for promising climate tech startups to scale in the UAE. The organisation drives collective action by forming subject-specific coalitions, including the UAE Carbon Alliance and SME Sustainability Alliance. UICCA focuses on priority themes including carbon solutions, circular economy, and climate adaptation. Its subsidiary, The Climate Tribe, amplifies environmental change through sustainable storytelling and community engagement.
About the UNFCCC Regional Collaboration Center (RCC) for the Middle East and North Africa (MENA) and South Asia (SA):
RCC MENA and SA of the UNFCCC was established in 2019 and is hosted by the World Green Economy Organisation (WGEO) in Dubai, UAE. RCC MENA SA supports national climate action through capacity-building, technical assistance, and strategic networking – sourcing know-how and resources. RCC MENA SA serves as an interface between the 30 countries under its geographical coverage and the UNFCCC Secretariat and provides facilitative support to Parties and Non-Party stakeholders towards the fulfilment of the mandates under the Kyoto Protocol, the United Nations Framework Convention on Climate Change and the Paris Agreement. You can find more information about RCC MENA SA through this link.
RCC MENA SA is hosting a series of webinars dedicated to the outcomes of COP29. The first session of the series, “Article 6 - What’s Next after Baku” aimed to support stakeholders in navigating the evolving carbon market landscape by providing a detailed overview of relevant COP29 outcome. The session provided an overview of Article 6 and its role in the Paris Agreement, key COP29 decisions on Articles 6.2, 6.4, 6.8, and the CDM transition, and outlined next steps for countries and stakeholders, including the private sector, in Article 6 implementation. More information, including the recording of the session, is available at this link.
