Reports are coming in that climate negotiators at COP30 in Belém appear to have reached consensus on winding down the Clean Development Mechanism (CDM), a legacy carbon crediting system created under the 1997 Kyoto Protocol.
According to draft text under discussion at COP30, governments are preparing to close the program by the end of 2026, marking the end of one of the world’s earliest UN-run carbon markets.
The CDM was launched to funnel investment into emission-cutting projects across developing nations, later generating a large supply of carbon credits known as CERs. But demand for these credits dropped sharply once the Paris Agreement shifted climate responsibilities to nearly every country, replacing Kyoto’s division between rich and poor states.
Since then, the CDM has remained largely idle, with millions of outdated credits still sitting on registries and repeated disputes over what should happen to them.
Article 6.4 takes over
The emerging COP30 agreement reflects growing pressure to transition to the Paris Agreement’s new global carbon market mechanism under Article 6.4. Many governments and industry groups argue that the old system is no longer compatible with modern climate targets, while NGOs warn that allowing old CERs into new markets could undermine credibility from day one.
The latest text proposes firm deadlines for ending credit issuance and transfers, while negotiators debate how to use remaining CDM funds. Whether those resources will support the Paris-era market or be redirected to climate adaptation remains unresolved.
If finalized, the decision would close a major chapter of UN carbon trading and accelerate the shift to a next-generation international credit market.
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AloJapan.com