Observers believe that the conclusion of COP29 marks another milestone in shaping the global carbon market, with several outcomes that bring increased clarity, integrity, and confidence to the voluntary and compliance carbon markets.
Welcoming the changes announced at COP29, Dr. Storm Patel, Commercial Director at The African Stove Company (TASC), said: “COP29 has marked a critical step toward creating a carbon market that is inclusive, transparent, and impactful.
“TASC is particularly encouraged by the measures that will enhance private-sector participation and streamline business operations. These developments create an enabling environment for growth of our portfolio of projects, bringing scalable and innovative solutions to the forefront of global climate action.
“The evolving rules under Article 6 represent a significant opportunity to support the growth of high-integrity carbon projects worldwide. By addressing potential challenges such as revocation risks while promoting clarity and market expansion, COP29 provides a roadmap for success.
“As one of Africa’s leading carbon credit project developers, TASC remains committed to aligning our projects with this framework to meet the global demand for quality carbon credits while delivering meaningful impacts for communities across Africa.”
TASC has provided more detailed commentary on some of the specific carbon market developments which were announced during COP29.
Breakthroughs for Private-Sector Engagement
One of the most significant outcomes of COP29 is the inclusion of mechanisms that TASC anticipates will open the door for host countries to directly engage with private entities in carbon trading arrangements. By not limiting participation to sovereign-to-sovereign models, this development paves the way for greater private-sector involvement.
Projects like TASC’s cookstove distribution and grassland restoration initiatives stand to benefit from these reforms, which create opportunities for scalability and reinforce the role of private developers as critical drivers of climate action.
Enhanced Safeguards and Clarity for Developers
The updated Article 6 guidance delivers long-awaited clarity on key areas, such as the requirements for Letters of Authorisation (LoAs). Uniformity in approval processes across host countries ensures that carbon projects meet international standards while eliminating risks of double-counting credits. For TASC, which is actively pursuing authorisations in Zambia and Zimbabwe, this creates a more predictable and streamlined pathway for project approval.
COP29 also addressed the contentious issue of revocation of host country authorisations. By establishing clear terms and restrictions – particularly limiting post-“first transfer” revocations to exceptional cases like fraud – the framework delivers much-needed stability to developers and investors alike. Additionally, the ability for host countries to define the “first transfer” (whether at authorisation, issuance, or credit use) enhances flexibility and transparency, allowing investors to incorporate these terms into their contracts with confidence.
Strengthening Market Integrity
The new rules also introduce mechanisms to enhance oversight and accountability. The UN Supervisory Body will now verify the consistency of information submitted by both host and acquiring parties, creating an additional layer of integrity.
Importantly, the outcome of the consistency checks and technical reviews we believe will be made public, ensuring transparency and further bolstering investor confidence. These measures align with TASC’s commitment to operating transparently and upholding the highest standards in the projects we develop.
Looking ahead, the methodologies under Article 6.4 are still under development. TASC is optimistic that their standardisation will reduce inconsistencies, bring global consensus to emissions reduction calculations, and avoid undermining the reputation of the carbon market. For these methodologies to be effective, it is essential that they prioritise accuracy over overly conservative approaches and account for local contexts, ensuring fairness for project developers and host communities.
Implications for Africa’s Voluntary Carbon Market
The dual-track approach endorsed at COP29 preserves a vital space for the voluntary carbon market to coexist alongside compliance frameworks. This flexibility enables voluntary projects, such as TASC’s initiatives, to scale while offering pathways into compliance markets. For Africa, where TASC operates some of the largest carbon projects, these decisions have the potential to catalyse market growth and foster sustainable development.
By creating clear rules, COP29 empowers African governments to translate international guidance into national policies, providing a fair and transparent playing field for developers. This positions Africa as a global leader in delivering climate solutions that simultaneously benefit local communities.
TASC is a global carbon project developer specialising in identifying, financing, and structuring commercially viable carbon projects, with experience in cookstove projects and other carbon project methodology initiatives.
