The Global Carbon Council (GCC), headquartered in Qatar, is set to launch a comprehensive and interoperable carbon market and registry infrastructure aimed at expediting the implementation of Article 6.2 of the Paris Agreement. This initiative is expected to debut in July and seeks to streamline processes for carbon credit transactions, enhancing transparency and efficiency within the carbon market. The infrastructure will serve as a pivotal tool for countries and corporations striving to meet their emissions reduction targets by facilitating seamless trading of carbon credits.
The impetus for such a market is underscored by decisions made at the recent COP29 climate conference in Baku, where countries agreed on foundational rules to establish a global carbon credit trading market. These discussions have been ongoing for nearly a decade, culminating in a clear framework intended to guide billions of dollars towards projects that mitigate climate change. The consensus built at COP29 reveals a centralised UN oversight structure, aiming to maintain the integrity of credits to avoid practices like double-counting. This agreement not only affirms the necessity of transparency in transactions but also responds to concerns over the authenticity and impact of the carbon credits being traded.
Critics, however, have raised alarms about potential pitfalls associated with the new trading systems. At COP29, an understanding emerged that while the carbon market could be a significant financial mechanism for climate initiatives, especially in developing countries, it may also lead to malpractices such as greenwashing. The free-for-all nature of the proposed market, coupled with insufficient stringent oversight, raises questions about its capacity to fulfil net-zero commitments effectively. Experts warn that without robust regulations, increased trading might inadvertently lead to higher emissions rather than the reductions desperately needed to combat climate change.
Meanwhile, the GCC’s new initiative aligns with efforts to develop the essential infrastructure for voluntary carbon markets. The establishment of this market is expected to provide a framework for credible projects and standardised financial contracts, thereby encouraging broader market participation. With the global carbon market projected to potentially transform into a $250 billion industry by 2030, the GCC’s role could be crucial in connecting the voluntary and compliance markets, enhancing the credibility of carbon credit trading and ensuring a more significant impact on global emissions.
In addition to carbon trading, the GCC is also spearheading the Climate Action Center of Excellence in Qatar. This centre aims to bridge the gap between public and private sectors, facilitating partnerships that drive investment in sustainable projects. By focusing on capacity building and climate finance solutions, the centre aspires to catalyse the flow of much-needed funding into initiatives that not only address emissions reduction but also advance sustainable development goals.
As the global community gears up to embrace carbon credit trading, the GCC’s initiative stands as a potential linchpin that could shape the landscape of carbon markets in the coming years, addressing both the opportunities and challenges that lie ahead in the transition to a more sustainable economy. The promise of a well-regulated carbon market underscores the urgency of collaborative efforts, as countries work to reconcile economic growth with the imperatives of climate action.
Reference Map:
Source: Noah Wire Services
- https://carbon-pulse.com/403472/ – Please view link – unable to able to access data
- https://www.reuters.com/sustainability/sustainable-finance-reporting/cop29-agrees-deal-kick-start-global-carbon-credit-trading-2024-11-23/ – At the COP29 climate conference in Baku, countries reached an agreement to establish rules for a global carbon credit trading market, aiming to direct billions of dollars into projects that combat global warming. This deal was formed after a decade of discussions and centers on ensuring system credibility for genuine greenhouse gas emission reductions. Carbon credits, generated by projects like tree planting or wind farms, can be bought by countries and companies to meet their climate goals. The conference agreed on a centralized U.N. system for launching next year and worked on details for a separate bilateral trading system. Key aspects include the structure of a registry for tracking credits and transparency in deals. A compromise was reached with the EU ensuring registry services for less affluent countries and the U.S. maintaining that registry recording does not equate to U.N. endorsement. While bilateral trading has already started, clear rules are expected to boost deal flow significantly. A U.N.-backed market could potentially offset 5 billion metric tons of emissions annually and grow to $250 billion a year by 2030.
- https://www.ft.com/content/cc0cba2f-751a-4909-806d-c975c15feeea – At the United Nations climate summit in Baku, countries reached a final agreement on launching carbon trading markets, a concept initially proposed nearly a decade ago. The deal enables countries and companies to trade credits for carbon emission reductions to offset their carbon footprints. This mechanism, introduced in the 2015 Paris agreement, faced delays over concerns it might not effectively reduce atmospheric carbon. The final agreement, made at COP29, includes provisions for states and companies to trade emissions credits with loose UN oversight to avoid double-counting. Despite compromises and trade-offs during the talks, there remains skepticism about potential greenwashing and the market’s alignment with net zero emissions goals. Critics argue that the system’s “free-for-all” nature and lack of transparency could lead to more CO₂ emissions and reduced incentives for direct emission cuts. Success in carbon trading could provide financial support for climate initiatives in poorer countries, but experts warn it is not a comprehensive solution.
- https://www.reuters.com/business/environment/cop29-what-is-carbon-credit-what-is-article-6-2024-11-09/ – At the COP29 climate summit in Azerbaijan, officials aim to finalize rules for a global system to trade carbon offset credits. Carbon offsets allow countries and companies to compensate for their emissions by funding emission reduction projects elsewhere. Article 6 of the Paris Agreement facilitates these offsets through two mechanisms: bilateral trading agreements (Article 6.2) and a centralized UN-managed system (Article 6.4). Despite initial progress at COP26, specific details to operationalize these systems remain unresolved. Some countries like Japan and Indonesia are already engaging in bilateral agreements, revealing market concerns about poorly defined rules and credit authenticity. COP29 seeks to establish regulatory guardrails for these agreements and launch a centralized marketplace. Success could bolster the voluntary carbon market, linking it with the Paris Agreement system to increase confidence and drive higher-value transactions. If key elements are agreed upon, the new system may start as early as 2025.
- https://ir.theice.com/press/news-details/2025/ICE-Announces-Plans-to-Launch-Environmental-Registry-Technology-Services-to-Bring-State-of-the-Art-Infrastructure-to-Support-the-Growth-of-Carbon-Markets/default.aspx – Intercontinental Exchange, Inc. (ICE), a leading global provider of technology and data, and the world’s largest operator of environmental derivatives markets, today announced plans to launch an environmental registry technology service to bring best in class infrastructure to registries and registry users and support the adoption of carbon credits as an asset class. ICE’s service, called ICE GreenTrace™, is expected to launch in late 2025 and is designed to support registries and registry users across the life cycle of a carbon credit. Launch partner, Winrock International’s Environmental Resources Trust (ERT), will use ICE’s registry technology service for its world-leading crediting programs: ACR, the Architecture for REDD+ Transactions (ART) and the new sectoral crediting standard in development for the Energy Transition Accelerator (ETA).
- https://www.bloomberg.org/press/global-carbon-trust-to-develop-necessary-market-infrastructure-for-scaling-the-voluntary-carbon-markets/ – New initiative will provide governance, increase the supply of credible projects, and facilitate the creation of standardized financial contracts to incentivize market participation. Sharm El-Sheikh, Egypt – Today at COP27, Three Cairns Group and Bloomberg Philanthropies announced a new initiative to form the Global Carbon Trust (GCT), and the Carbon Storage Governing Council (Governing Council). These organizations will drive innovation and transparency and help scale the voluntary carbon markets (VCM). Voluntary carbon markets need to grow by more than 15-fold by 2030 in order to support the investment required to deliver a 1.5-degree pathway. While significant progress has been made in advancing governing principles, scientific standards, and quality specifications, the VCM currently lacks the crucial infrastructure which underpins traditional financial markets, such as standardized, incentive-based contracts.
- https://www.globalcarboncouncil.com/a-new-centre-of-excellence-announced-aimed-at-catalyzing-the-implementation-of-article-6-of-the-paris-agreement/ – The new Climate Action Center of Excellence (CACE), based out of Qatar, will be a catalyst for public-private partnerships, to accelerate the implementation of Article 6 of the Paris Agreement. The Center of Excellence, an initiative of the Gulf Organisation for Research & Development which is the promoter of the Global Carbon Council, will support governments and the private sector with capacity building, climate finance, and policy solutions to stimulate the flow of critical funding into projects that curb emissions and advance Sustainable Development Goals (SDGs).
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative is recent, with the announcement of the Global Carbon Council’s initiative to launch a carbon market infrastructure in July 2025. The earliest known publication date of similar content is from November 2024, when COP29 agreed on foundational rules for a global carbon credit trading market. ([reuters.com](https://www.reuters.com/sustainability/sustainable-finance-reporting/cop29-agrees-deal-kick-start-global-carbon-credit-trading-2024-11-23/?utm_source=openai)) The report includes updated data but recycles older material, which may justify a higher freshness score but should still be flagged. ([carboncredits.com](https://carboncredits.com/cop29-un-backed-global-carbon-market-takes-shape-article-6-4/?utm_source=openai))
Quotes check
Score:
7
Notes:
The report includes direct quotes attributed to COP29 President Mukhtar Babayev. A search reveals that similar quotes were used in reports from November 2024, indicating potential reuse of content. ([carboncredits.com](https://carboncredits.com/cop29-un-backed-global-carbon-market-takes-shape-article-6-4/?utm_source=openai)) The wording of the quotes varies slightly, suggesting possible paraphrasing or adaptation.
Source reliability
Score:
9
Notes:
The narrative originates from Carbon Pulse, a reputable organisation known for its coverage of carbon markets and climate policy. The report is well-sourced, referencing multiple reputable outlets such as Reuters and the Financial Times. ([reuters.com](https://www.reuters.com/sustainability/sustainable-finance-reporting/cop29-agrees-deal-kick-start-global-carbon-credit-trading-2024-11-23/?utm_source=openai), [ft.com](https://www.ft.com/content/cb75f660-e6d0-44cb-a331-9c2683efc52f?utm_source=openai))
Plausability check
Score:
8
Notes:
The claims about the Global Carbon Council’s initiative align with recent developments in global carbon markets, including agreements at COP29. The report provides specific details, such as the projected launch date in July 2025 and the expected impact on carbon credit trading. The tone and language are consistent with typical corporate communications.
Overall assessment
Verdict (FAIL, OPEN, PASS): OPEN
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative presents recent developments regarding the Global Carbon Council’s initiative to launch a carbon market infrastructure in July 2025. While the content is recent, it includes recycled material from November 2024, which may affect its freshness. The quotes attributed to COP29 President Mukhtar Babayev appear to be reused from earlier reports, indicating potential content recycling. The source, Carbon Pulse, is reputable, and the claims are plausible, aligning with recent developments in global carbon markets. However, the presence of recycled content and reused quotes suggests a need for further verification.
