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At COP29, which drew to a close in Baku last week, the UK officially launched its Principles for Voluntary Carbon and Nature Market Integrity.

The principles aim to enhance voluntary carbon markets (VCMs) and bolster private-sector climate action and are aligned with the Voluntary Carbon Markets Integrity Initiative (VCMI) Claims Code of Practice.

The UK’s announcement aligns with its ambition to channel up to $50 billion into VCMs by 2030, positioning itself alongside global leaders like the U.S. and G7 in climate finance innovation.

Public consultation is planned for 2025 to refine the framework.

Further announcements from COP29 include the full operationalisation of the Loss and Damage Fund and the decision by ASEAN countries to create a common carbon market framework.

Operationalising the Loss and Damage Fund during COP29 was a stated priority of the President of the Republic of Azerbaijan, Mr. Ilham Aliyev.  In September of this year, critical measures were taken to commence the Fund’s operations, including the appointment of Ibrahima Cheikh Diong as Executive Director.

As of end November, the total pledged financial support for the Fund exceeds $730 million. The Fund will be able to start financing projects beginning in 2025. 

Further reading:

COP29: UN approves Article 6.4, launches global carbon market

COP29: Closing speech