Photo: “Around The Venue” by UNclimatechange, CC BY-NC-SA 4.0
The adoption of the New Collective Quantified Goal (NCQG) at COP29 in Baku marked a critical milestone for climate finance, setting an ambitious target for developed countries to mobilize at least USD 300 billion annually by 2035, while aiming to scale total climate finance for developing countries to USD 1.3 trillion per year from all public and private sources. Among the potential sources of climate finance, international carbon markets established under Article 6 of the Paris Agreement hold significant promise. Article 6 mechanisms—particularly Articles 6.2 and 6.4—can channel additional resource flows and benefits. However, despite their potential, the link between Article 6 and the NCQG has received limited attention in UNFCCC negotiations.
This discussion paper seeks to provide a first conceptual framework on the link between Article 6 and the NCQG, examining how different types of Article 6-related resource flows and benefits could be categorized and potentially counted contribute toward the USD 300 billion and USD 1.3 trillion targets. Given the early stage of this debate, it proposes preliminary conclusions that are meant to be critically examined and intended to stimulate dialogue between the climate finance and carbon market communities. By fostering greater clarity on the accounting and mobilization potential of Article 6, this discussion aims to inform future negotiations and support the effective implementation of the NCQG.
Read the full paper.
