The decision could pave the way for a global carbon market funding climate action in the Global South. However, it remains divisive, with activists warning it may be a 'false solution' to the climate crisis.

Listen to this article 10 min Listen to this article 10 min "This will be a game-changing tool to direct resources to the developing world," said the COP29 president, Mukhtar Babayev, on Monday, 11 October in Baku, Azerbaijan.

The president of the conference was hailing the consensus reached by the parties on standards and rules for the creation of carbon credits.

The move was made in line with Article 6.4 of the Paris Agreement, which speaks of "a mechanism to contribute to the mitigation of greenhouse gas emissions and support sustainable development".

Article 6 establishes a framework for a global carbon credit market, allowing for the transfer of greenhouse gas emission reductions or removals between countries. This mechanism is designed to facilitate international cooperation in achieving Nationally Determined Contributions -- or national climate plans -- and is overseen by a supervisory body appointed by the Conference of the Parties (COP).

Put differently, the development was a step toward the creation of an international carbon market that operates under the supervision of the United Nations and is geared toward reducing emissions and helping countries grow in a way that recognises and acts on the reality of human-induced climate change.

Carbon...