Nepal, May 20 -- One of the most significant outcomes of COP29 in Baku, Azerbaijan, was the near completion of Article 6, a key provision of the Paris Agreement (PA) that facilitates international carbon trading and cooperation. This mechanism is divided into three key components: Article 6.2, which enables bilateral or multilateral carbon trading through Internationally Transferred Mitigation Outcomes (ITMOs); Article 6.4, which establishes a UN-regulated carbon market similar to the Clean Development Mechanism (CDM) where emissions reduction projects can generate and trade credits; and Article 6.8, which promotes non-market-based cooperation such as technology transfers and policy coordination to support global emissions reductions.

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