As the world continues to grapple with the climate crisis, voluntary carbon markets (VCMs) have become a vital mechanism for businesses aiming to take climate action beyond regulatory mandates. The COP29 Summit in Baku (November 2024) marked a pivotal moment for global carbon markets — finalising key rules under Article 6 of the Paris Agreement and reinforcing the need for transparent, trustworthy offsetting mechanisms.
At Global ClimateX (GCx), we believe the post-COP29 era presents fresh opportunities to drive impactful climate action. This blog explores why voluntary carbon markets remain critical for business in 2025 — and how GCx’s innovative blockchain-powered platform is aligned with these global developments.
1. COP29’s Historic Progress on Carbon Markets and ITMOs
At COP29, Parties agreed on the final rulebook for Article 6, which governs international carbon trading under the Paris Agreement. A key element is the framework for Internationally Transferred Mitigation Outcomes (ITMOs) — tradable units representing verified emission reductions or removals that countries can transfer internationally to meet their climate targets.
1 – Article 6.2 sets out the rules for ITMOs, ensuring clear accounting to prevent double counting between countries and support cooperative approaches to emission reductions.
2 – Article 6.4 establishes a UN-regulated mechanism to issue credits, which can be used as ITMOs and traded internationally with high environmental integrity and a share of proceeds supporting adaptation in vulnerable countries.
As reported by the Financial Times and Reuters, this framework represents the first globally coordinated approach to carbon trading, but also comes with challenges in implementation and alignment with national policies.
2. Challenges That Remain — And Why Voluntary Markets Matter
Despite progress, COP29 exposed ongoing challenges:
1 – Double-counting risks: Ensuring ITMOs and other carbon credits aren’t claimed by multiple parties remains a core concern.
2 – Market fragmentation: Different standards and registries operate independently, causing confusion and trust issues.
3 – Climate finance gaps: The pledged climate finance falls short of needs, particularly for adaptation in vulnerable countries (The Guardian) .
These challenges highlight the continued role of voluntary markets, which can fill gaps by:
1 – Providing high-quality, transparent carbon credits verified against global standards,
2 – Offering flexible mechanisms for businesses to voluntarily reduce their emissions footprint, and
3 – Mobilising private sector capital to finance climate projects not covered by compliance markets.
3. How GCx Aligns with COP29’s Vision for Integrity and Impact
GCx’s blockchain-enabled carbon credit marketplace addresses the core COP29 challenges by:
1 – Ensuring transparency and traceability: Every credit transaction — including ITMOs where applicable — is recorded on an immutable blockchain ledger, preventing double-counting and enabling real-time verification.
2 – Promoting integrity through rigorous vetting: Credits on GCx are sourced from high-integrity projects compliant with standards like Verra and Gold Standard, aligned with the Core Carbon Principles developed by the Taskforce on Scaling Voluntary Carbon Markets (TSVCM) .
3 – Democratising climate action via micro-offsetting: GCx breaks carbon credits into smaller units, enabling individuals and small businesses to participate in climate finance—broadening impact beyond large corporations.
4. Why Businesses Should Engage in Voluntary Carbon Markets in 2025
1 – Enhancing ESG and Net Zero commitments: Voluntary offsets complement emission reduction strategies, helping businesses credibly meet stakeholder expectations and regulatory trends.
2 – Building customer and investor trust: Transparent, verifiable offsets demonstrate genuine climate responsibility.
3 – Driving innovation and inclusivity: Through platforms like GCx, more stakeholders—beyond large emitters—can contribute to climate solutions.
Conclusion
The COP29 agreements, including the framework for ITMOs, have laid a stronger foundation for international carbon markets, but the voluntary carbon market’s role is far from over. As businesses navigate a complex landscape of compliance, finance, and sustainability, platforms like Global ClimateX provide the transparency, accessibility, and impact measurement needed to make every offset count.
By embracing blockchain technology and micro-offsetting, GCx is turning global commitments into local, measurable climate actions—empowering everyone to be part of the solution.
References
1 – Financial Times, “Kick-start for carbon credit market after loose rules agreed at COP29,” Nov 2024.
2 – Reuters, “Business seeks details in face of mixed COP29 climate messages,” Nov 2024.
3 – The Guardian, “COP29: poorer countries are left shortchanged again,” Nov 2024.
4 – Taskforce on Scaling Voluntary Carbon Markets (TSVCM), Core Carbon Principles.
5 – Verra & Gold Standard project certification standards.
