Cop29: From the controversy about carbon credits to the Fossil of the Day awards

Singapore’s minister of sustainability and the environment Grace Fu was one of the key figures in the talks about carbon credits, called Article 6. According to the UN website, Article 6 “enables international cooperation to tackle climate change and unlock financial support for developing countries. This means that, under Article 6, countries are able to transfer carbon credits earned from the reduction of greenhouse gas emissions to help one or more countries meet their climate targets”. 

However, this mechanism has been a source of significant controversy, particularly for nations in the Global South grappling with the most severe impacts of climate change.

Many developing countries view carbon credits with scepticism, fearing they could become a loophole for wealthy nations to avoid making substantial emission cuts at home. “It’s going to do substantively nothing to actually reduce our emissions,” Eriel Deranger, executive director of the campaign group Indigenous Climate Action told the BBC. 

Greenpeace International echoed this sentiment, labelling carbon markets as a “smokescreen” that distracts from the urgent need for systemic change.

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Their concerns stem from several key issues, including doubts about the ability of carbon credit projects to deliver genuine and lasting emissions reductions. Accurately measuring and verifying emissions cuts remain a challenge, and there is a risk of projects simply shifting emissions elsewhere rather than eliminating them.

There are also concerns about greenwashing, where companies and countries can use carbon credits to offset their emissions without fundamentally altering their polluting practices. This could lead to a false sense of progress and delay the necessary transition to a low-carbon economy.

Despite these concerns, discussions on Article 6 progressed at Cop29, with Minister Fu highlighting positive developments. She noted an increase in countries willing to participate in carbon markets, suggesting growing momentum for this mechanism. 

This includes increased scrutiny, with negotiators focused on strengthening the rules and safeguards around carbon markets to ensure environmental integrity and prevent loopholes.

There was a greater emphasis on ensuring that carbon market activities contribute to sustainable development in host countries. This involves promoting projects that benefit local communities, protect biodiversity and support a just transition to a green economy.

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Cop29 marked the first time the tourism industry was formally recognised within the climate change agenda. This signifies a growing awareness of the sector’s significant carbon footprint, estimated to be at least 8 per cent of global emissions.

While some individual companies have made strides in reducing their environmental impact, the industry as a whole has yet to demonstrate a substantial decrease in its emissions. Research released by the Global Carbon Project earlier this month projected a 7.8 per cent increase in international aviation and shipping emissions this year, underscoring the urgent need for action.   

Central to the discussions was the Glasgow Declaration on Climate Action in Tourism, introduced at Cop26 in 2021. This accord, signed by over 900 travel companies, NGOs and government agencies, aimed to accelerate climate action within the industry. But progress has been slow, with major players like airlines and cruise lines largely remaining on the sidelines. 

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The urgent need for financial support to vulnerable nations echoed throughout Cop29.

Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, delivered a powerful message, highlighting the stark reality that nearly half of humanity lives in climate hotspots where they are 15 times more likely to die from climate impacts. He called for a dramatic increase in funding, emphasising the need for “torrents” of finance that are easily accessible to those most in need. 

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Developing countries, facing disproportionate impacts from a crisis they did little to create, made a compelling case for US$1.3 trillion per year in climate finance to support their adaptation and mitigation efforts.

At the time of writing, no number has been agreed. 

Moreover, a significant portion of this funding comes in the form of loans, further burdening already indebted nations. This raises concerns about the sustainability of climate finance and its potential to exacerbate existing inequalities. As a result, many vulnerable countries find themselves trapped in a cycle of debt, with limited resources to invest in climate resilience and a just transition to a low-carbon economy.

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Saudi Arabia, the world’s leading oil exporter, once again took centre stage at Cop29, but not for its climate leadership.  

As reported by The New York Times, Saudi diplomats engaged in a concerted effort to derail any agreement that reiterated the commitment to transition away from fossil fuels. This obstructionist stance, described by one observer as a “wrecking ball” to the negotiations, reflects a year-long campaign by the Kingdom to undermine progress on climate action.   

According to sources cited in the article, Saudi Arabia has opposed language promoting a transition away from fossil fuels in at least five UN resolutions this year. The head of Saudi Aramco, the world’s largest oil producer, further solidified this stance by publicly dismissing the idea of phasing out oil and gas.

Cop29 continued the tradition of the “Fossil of the Day” award, a satirical prize bestowed upon countries hindering progress in climate negotiations. Organised by Climate Action Network-International (CAN), this daily event features a dinosaur mascot and humorous skits to publicly call out those deemed to be obstructing climate action.

Italy earned the dubious honour for its promotion of fossil fuel extraction in Africa and its close ties with the fossil fuel-rich host country, Azerbaijan.

The EU also found itself in the “Fossil of the Day” spotlight for its perceived lack of ambition in climate finance commitments. CAN criticised the bloc for proposing a funding level that, when adjusted for inflation, represents no increase compared to the target set 15 years ago. This highlights the growing frustration among developing countries and civil society groups over the inadequate financial support provided by wealthy nations to help vulnerable countries address the climate crisis.

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