Former United Nations Secretary-General Ban Ki-moon(fifth from left) inaugurates the Carbon Transaction Facility (CTF) at Global Green Growth Institute in Jung-gu, Seoul on Wednesday. (Sanjay Kumar/ The Korea Herald)

Former United Nations Secretary-General Ban Ki-moon on Wednesday inaugurated the Carbon Transaction Facility, an entity commissioned to scale up international carbon trading.

The facility was launched in accordance with Article 6 of the Paris Agreement, according to the Global Green Growth Institute, an intergovernmental organization dedicated to supporting sustainable economic growth. Ban chairs the institute.

Article 6 of the Paris Agreement allows countries to cooperate on emission reduction targets by transferring carbon credits. This helps establish frameworks for trading greenhouse gas reductions as well as promote finance, technology transfer and capacity building.

“Bilateral cooperation under Article 6 of the Paris Agreement and specifically the Carbon Transaction Facility offers an important solution for implementing climate action,” said Ban.

Ramin Hasanov, Ambassador of Azerbaijan to Korea(second from left) speaks at Global Green Growth Week 2024 at Global Green Growth Institute in Jung-gu, Seoul on Wednesday. (Sanjay Kumar/ The Korea Herald)

“It allows host countries that are willing to go ‘above and beyond’ their unconditional commitments to receive payments for taking climate action that otherwise would not have been possible,” according to Ban.

The facility aims to raise up to $500 million for Internationally Transferred Mitigation Outcomes purchases by 2030.

The institute has also launched the Article 6 Readiness Facility, a multidonor fund seeking $50 million to enhance capacity building and institutional strengthening in member and partner states.

“Hurricanes Helen and Milton in the US, Typhoon Yagi in Southeast Asia, heat-related deaths, and crop destruction are stark reminders of the gravity of the climate crisis,” he said.

Former United Nations Secretary-General Ban Ki-moon speaks at Global Green Growth Week 2024 at Global Green Growth Institute in Jung-gu, Seoul on Wednesday. (Sanjay Kumar/ The Korea Herald)

Ban was addressing a ministerial panel held on the sidelines of Global Green Growth Week 2024.

“The liberties we enjoy today, such as freedom to vote and basic human rights, will mean little if we are merely trying to survive devastating storms or fleeing from drought and famine,” he said.

“CTF is about creating holistic solutions tailored to the unique needs of member states. Businesses and civil society groups must join us in this effort,” highlighted Ban, urging global leaders to increase their political commitment to achieving the Sustainable Development Goals and noting the slow progress in implementing the objectives.

He emphasized that while there is an urgent need to combat the climate crisis and its effects on livelihoods, society is instead preoccupied with conflicts, spending billions on weapons and wasting time and energy on destruction and blame amidst ongoing wars, civil unrest and economic tensions.

“We must do things now,” he said, advocating sustainable development and adaptation.

Former United Nations Secretary-General Ban Ki-moon interacts with Tajik Ambassador to Korea Salohiddin Kirom while interacting with members of the diplomatic corps in Seoul at Global Green Growth Week 2024 at Global Green Growth Institute in Jung-gu, Seoul on Wednesday. (Sanjay Kumar/ The Korea Herald)

“Green growth needs to be a holistic approach,” underscored Ban.

Ban hopes that while the challenges we face are severe and urgent, collective action can transform these challenges into opportunities for a safer, greener and more sustainable future for all generations.

“When you return, please persuade your leaders to do much more on SDGs. I think this is my message,” urged Ban to members of the ministerial panel.

"There is no you and me. It is all I and we together,” he said, urging GGGI member states to collectively act on climate change.