Introduction– To strengthen the delivery and efficiency of climate finance, the carbon markets under Article 6 (A6) of the Paris Agreement were made fully operational at COP29.
Operationalisation of Article 6 at COP29
- 89 cooperation arrangements under Article 6.2 now exist across 58 Parties, indicating rapid growth in bilateral and plurilateral carbon market collaborations.
- Adoption of the Paris Agreement Crediting Mechanism (Article 6.4) marked the transition from the Clean Development Mechanism to a more rigorous, transparent, and globally aligned framework.
India’s Entry into Article 6 Mechanisms
- In August 2025, India signed the Joint Crediting Mechanism (JCM), operationalising Article 6.2.
- This move represents a new phase of international climate cooperation and India’s formal entry into global carbon markets under the Paris Agreement.
Why does Article 6 matter for India?
Benefits in terms of access- Participation in Article 6 enables Transfer of advanced technologies, Support for R&D, Stronger bilateral relations and Inflow of climate finance.
Drive socio-economic transformation- A6 can drive socio-economic transformation aligned with India’s development and climate goals.
Driver of economic growth- It will help in accelerating low-carbon industrial and technological transformation and building resilient trade relationships.
What are India’s identified eligible activities under Article 6?
India has identified 13 eligible activities balancing climate and development priorities. Its Focus is on high-end, emerging technologies with strong emissions reduction and growth potential.
The Key sectors for the next three years include:
- Renewable energy with storage
- Solar thermal and offshore wind
- Green hydrogen and compressed bio-gas
- Advanced mobility solutions (e.g., fuel cells)
- High-end energy efficiency technologies
- Sustainable aviation fuel
Article 6 also aligns with long-term decarbonisation goals:
- Offshore wind, energy storage, and marine energy to diversify beyond coal
- Green hydrogen for industrial decarbonisation (e.g., steel)
- Carbon capture, utilisation, and storage (CCUS) for hard-to-abate sectors like cement
What should be the way forward for realising the full benefit of Article 6?
Strengthen domestic framework- Clarify the role of the Designated National Authority. Define rules for Letters of Authorisation, corresponding adjustments, and carbon trading regulation
Streamline project clearances– Create a Cabinet-level steering committee. Establish a single-window clearance system. Address long approval timelines (over 1,600 days in India vs <400 days elsewhere in Asia)
Build the carbon removals market- Leverage rising global demand. Promote activities like Biochar and Enhanced Rock Weathering.
Strengthen South–South collaboration- Develop shared systems, knowledge networks, and financing models among developing countries.
Conclusion
India’s engagement under Article 6 is more than procedural. It offers a pathway to advanced technologies, climate-aligned finance, and deeper international partnerships, supporting long-term economic and climate objectives.
| Question for Practice How can Article 6 of the Paris Agreement enable countries like India to accelerate low-carbon development while ensuring environmental integrity and avoiding double counting of emissions reductions? |
Source- TH
