Article 6 of the Paris Agreement

Context

1. At COP29, carbon markets under Article 6 (A6) of the Paris Agreement were made fully operational, marking a major step in strengthening the delivery and efficiency of climate finance.
2. According to the Article 6 Implementation Partnership, 89 cooperation arrangements across 58 countries are already in place under Article 6.2, showing rapid momentum in bilateral and plurilateral carbon market cooperation.
3. Further, the adoption of the Paris Agreement Crediting Mechanism (Article 6.4) signalled a formal transition from the earlier Clean Development Mechanism (CDM) to a more rigorous, transparent, and globally aligned system.
4. For India, Article 6 offers a powerful pathway to mobilise finance, accelerate decarbonisation, and strengthen climate leadership.

Q1. What is Article 6 of the Paris Agreement, and why has it gained renewed importance after COP29?

1. Article 6 of the Paris Agreement provides a framework for voluntary international cooperation in achieving climate targets.
2. It allows countries to cooperate through carbon markets and non-market approaches to reduce emissions more efficiently.
3. Why Article 6 matters now
   1. COP29 made Article 6 fully operational
   2. Clear rules removed long-standing uncertainty
   3. Countries can now trade carbon credits with confidence
4. For India, this renewed clarity transforms Article 6 from a theoretical provision into a practical climate-finance tool.

Q2. Why were carbon markets under Article 6 made fully operational at COP29, and what problem do they seek to address?

1. Global climate action faces a large finance gap, especially for developing countries.
2. Existing public finance is insufficient to meet mitigation and adaptation needs.
3. Problems Article 6 addresses
   1. Limited flow of private climate finance
   2. High cost of emissions reduction for some countries
   3. Fragmented carbon markets
4. By operationalising Article 6, COP29 enabled cross-border carbon trading, lowering global mitigation costs while channeling finance to countries where emission reductions are cheaper.

Q3. How do cooperation arrangements under Article 6.2 work, and why are they expanding rapidly across countries?

1. Article 6.2 allows countries to enter bilateral or plurilateral agreements to trade mitigation outcomes.
2. How Article 6.2 works
   1. One country finances emission reductions in another
   2. Credits are transferred with accounting safeguards
   3. Both countries benefit through cost-effective mitigation
3. Why momentum is growing
   1. 89 arrangements across 58 countries already
   2. Flexibility in design
   3. Faster implementation than multilateral mechanisms
4. For India, this creates opportunities for targeted climate partnerships.

Q4. Why is the transition from the Clean Development Mechanism to the Article 6.4 Crediting Mechanism considered a major reform?

1. The Clean Development Mechanism (CDM) faced criticism for weak oversight and questionable environmental integrity.
2. Key improvements under Article 6.4
   1. Stronger rules against double counting
   2. Centralised global supervision
   3. Alignment with Paris temperature goals
3. Why this matters
   6. Article 6.4 creates a credible, globally trusted carbon market, restoring confidence among investors and governments.
   7. This improves long-term sustainability and fairness of climate finance.

Q5. How does Article 6 improve the delivery, scale, and efficiency of climate finance for developing countries like India?

1. Developing countries face barriers in accessing climate finance due to complexity and risk perception.
2. How Article 6 helps
   1. Mobilises private capital, not just public funds
   2. Rewards verified emission reductions
   3. Reduces dependence on aid-based finance
3. For India, Article 6 turns climate action into an investment opportunity, improving both scale and predictability of finance inflows.

Q6. In what ways can India strategically benefit from Article 6 carbon markets to meet its climate and development goals?

1. India has large low-cost mitigation potential across renewable energy, energy efficiency, and nature-based solutions.
2. Strategic benefits for India
   1. Monetising emission reductions
   2. Financing clean energy and industrial transition
   3. Supporting jobs and green growth
3. Article 6 allows India to align development priorities with climate action, without compromising economic growth.

Q7. How does Article 6 strengthen environmental integrity and transparency compared to earlier carbon market mechanisms?

1. Environmental integrity was a major weakness of past carbon markets.
2. Key safeguards under Article 6
   1. Robust accounting rules
   2. Mandatory avoidance of double counting
   3. Independent verification
3. These measures ensure that every traded credit represents a real and additional emission reduction, strengthening global trust in carbon markets.

Q8. What are the key risks and challenges associated with Article 6 implementation, particularly for developing countries?

1. Despite its promise, Article 6 is complex.
2. Key challenges
   1. Technical capacity for accounting
   2. Risk of unequal bargaining power
   3. Need for strong domestic regulation
3. Without safeguards, benefits could be uneven. India must build institutional capacity to ensure fair value and national interest protection.

Q9. How does Article 6 enhance India’s role and influence in global climate governance and South–South cooperation?

1. Article 6 positions India as both a climate solution provider and market leader.
2. Strategic influence
   1. Leadership in South–South carbon partnerships
   2. Shaping global market norms
   3. Strengthening climate diplomacy
3. By actively engaging, India can move from being a climate finance recipient to a rule-shaper in global carbon markets.

Conclusion

Article 6 of the Paris Agreement has emerged as a powerful climate-finance and cooperation tool, especially after being fully operationalised at COP29. For India, it offers a unique opportunity to mobilise large-scale finance, accelerate decarbonisation, and integrate climate goals with development priorities. By combining market efficiency with strong environmental safeguards, Article 6 enables India to pursue climate leadership without sacrificing growth. Its success, however, will depend on smart policy design, institutional readiness, and strategic engagement in global carbon markets.