By Nathan Truitt, EVP of Climate Funding at the American Forest Foundation

As COP 29 comes to a close, I am reflecting on the progress, the missed opportunities, and what steps we can take next. First, the good news: the passage of Article 6.4 was a positive signal that the global carbon market can and must be relied upon in our struggle to avoid the worst impacts of climate change. Yet, more progress is needed. COP29 was billed as the finance COP and finance remains the thorny question holding the market back. The Independent High-Level Expert Group on Climate Finance, a new body appointed by the United Nations, estimated $1.3 trillion of investment is needed annually to keep global temperature increase below 2 degrees Celsius.

This begs the question: where will this funding come from? By the end of the COP, only $300 billion was committed to the global climate effort, a much smaller number than $1.3 trillion. We continue to wait for government action, but governments can’t and won’t solve this crisis alone. And if the United States, the world’s biggest economy and emitter, withdraws from the Paris Agreement, there will be an even bigger void.

The answer: Companies are a critical player in this fight and for too long they have sat on the sidelines. Companies have an urgent financial and moral obligation to both decarbonize their businesses and invest in pro-climate solutions. Climate change threatens to disrupt their supply chains and drastically raise the cost of doing business. And customers, employees and investors are increasingly demanding corporate climate action.

So companies, what do you need to act? There are legitimate concerns that have historically held companies back from participating in the market. When talking with companies across sectors, I’ve heard several reoccurring needs:

• More availability of verified high-integrity carbon credits
• More insight into their purchase to ensure the integrity of those credits and avoid reputational risk
• Faster and easier procurement. Today, it can take a company 18 months or more to finalize a standard offtake agreement.

Well, there are now signals indicating these challenges are being addressed. The passage of Article 6.4 is just the latest in the strengthening of guidance and frameworks designed ensure integrity and bolster corporate confidence. The American Forest Foundation is also working to address that thorny and arduous credit procurement process. In February, we will host the American Forest Foundation Carbon Auction, the first for a U.S. nature-based project. Carbon credit auctions offer buyers:

• A streamlined due diligence and buying process. That 18-month long process now condenses to a few weeks, without losing any of its rigor or the protections it offers buyers.
• More insight into their purchase. All buyers have access to the same easy-to-use diligence resources and can see competing anonymous bids.
• The opportunity to secure a substantial strip of credits years ahead of time at a significant per tonne discount. As carbon credit prices are predicted to rise over the next few years, securing credits in bulk today is essential to keeping corporate investment affordable.

And most importantly, we believe the auction offers companies both the future of our planet and the economic health and resiliency of rural America.

Companies: above, I listed the threats to your business that demand action. But there is also an opportunity. An opportunity to take proactive and decisive action to create a more sustainable future. While others continue to sit on the sidelines, the organizations that are courageous enough to move things forward are going to shape this new future – and generate significant competitive advantage while doing so.

While COP29 didn’t bring all the news we hoped for, I left Baku hopeful. I met countless climate leaders rolling up their sleeves and doing the hard work to protect our planet and the people that depend on it. These leaders understood there’s no one else to wait for and no more excuses. There is only action. So to companies, I ask: will you join us? Are you ready to make your commitment toward a more sustainable future or will you continue to sit on the sidelines?

**Read more about the American Forest Foundation carbon credit auction**

Any opinions published in this commentary reflect the views of the author and not of Carbon Pulse.

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