The approval of Article 6.4 during COP29 in Baku marks a turning point for global environmental action. As part of the broader Article 6 framework under the Paris Agreement, this mechanism establishes a United Nations-supervised global carbon market, providing a system for countries and private entities to trade verified emissions reductions and removals. This milestone comes at a critical juncture for international carbon markets, which have faced growing scrutiny over credit quality and transparency.
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For most companies, the largest figure in the carbon inventory is not the office, the vehicle fleet, or the electricity bill. It sits upstream, in the goods and materials a business buys to make and sell its products. These purchased inputs form the bulk of a company’s Scope 3 emissions, which routinely exceeds everything the business controls directly, and can add up to 90% of their global footprint.
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