ARTICLE 6 IS A POWERFUL TOOL FOR INDIA

News: Article 6 of the Paris Agreement is strategically important for India, especially after it became fully operational at COP29. It highlights how carbon markets under Article 6 can help India achieve climate goals, economic growth, technology transfer, and global leadership

Article 6 of the Paris Agreement

Article 6 provides market-based mechanisms that allow countries to cooperate voluntarily to achieve their climate targets (NDCs).

Components of Article 6

Article 6.2 – Cooperative approaches

• Bilateral / multilateral carbon trading
• Countries exchange Internationally Transferred Mitigation Outcomes (ITMOs)
• Requires robust accounting to avoid double counting
• Example: India–Japan Joint Crediting Mechanism (JCM)

Article 6.4 – Paris Agreement Crediting Mechanism

UN-supervised global carbon market

• Successor to the Clean Development Mechanism (CDM) of Kyoto Protocol
• Allows private sector participation
• Credits generated from verified emission-reduction projects. COP29 marked the full operationalisation of Article 6.4, a major milestone

Article 6 is especially powerful for India

• Carbon markets channel private global capital
• Helps fund India’s massive energy transition needs
• India can access advanced low-carbon technologies
• Boost R&D and industrial transformation
• Accelerating decarbonisation of hard-to-abate sectors- steel, cement, thermal power, heavy transport

Way ahead

• Strengthen domestic framework: India has appointed a Designated National Authority (DNA) for Article 6 But must still define eligible activities, rules for Letters of Authorisation
• Need single-window clearance
• Strengthen South–South cooperation: India can lead: Knowledge sharing,Financing models