At the COP29 Azerbaijan summit in Baku, negotiators agreed on rules for a UN-operated global carbon market.
This framework, known as Article 6.4, will set a gold standard for emissions trading. For many years, an agreement has been stalled due to disagreements on how to best regulate such a system.
A global carbon market could generate substantial climate finance for mitigation projects in developing nations, while helping buyers reach climate goals through purchasing credits.
However, some critics express concerns about the quality and regulation of these credits, emphasizing the need for stricter oversight to ensure emission reductions.
One group, Carbon Market Watch, was concerned over something called reversal risks, where stored carbon reenters the atmosphere, such as through fire.
