Article 6 (A6) of the Paris Agreement

o strengthen the delivery and efficiency of climate finance, carbon markets under Article 6 (A6) of the Paris Agreement were made fully operational at COP29. This marks a major step in advancing international cooperation on emissions reduction and climate finance.

Growing Momentum under Article 6.2

• According to the Article 6 Implementation Partnership, there are:
  • 89 cooperation arrangements
  • Across 58 Parties
  • Under Article 6.2
• This reflects the rapid acceleration of bilateral and plurilateral carbon market collaborations worldwide.

Article 6.4: A New Crediting Mechanism

• The adoption of the Paris Agreement Crediting Mechanism (Article 6.4) at COP29 marked a historic transition from the earlier Clean Development Mechanism (CDM).
• Article 6.4 provides a centralised, UN-supervised carbon crediting framework, aimed at ensuring environmental integrity and sustainable development.

India and the Joint Crediting Mechanism (JCM)

• In August 2025, India entered a new phase of carbon market engagement by signing the Joint Crediting Mechanism (JCM).
• This effectively operationalised Article 6.2 for India.
• India’s JCM partnership with Japan is an early and prominent example of how Article 6 cooperation can work in practice.

Benefits of Article 6 Cooperation for India

Partnerships under Article 6 can:

• Enable transfer of advanced climate technologies
• Support research and development
• Strengthen bilateral relations
• Channel much-needed climate finance into the economy

For a rapidly growing country like India, Article 6 mechanisms can act as a lever for socio-economic transformation, while aligning with domestic climate goals.

Beyond Carbon Credits

• The potential of Article 6 mechanisms (both 6.2 and 6.4) is not limited to generating climate finance through carbon credits or internationally transferred mitigation outcomes (ITMOs).
• They also promote capacity building, technology diffusion, and institutional cooperation.

Paris Agreement Rulebook and Safeguards

• The Paris Agreement Rulebook provides the architecture for Article 6.
• It allows bilateral and multilateral cooperation while ensuring:
  • Robust accounting
  • Avoidance of double counting
  • Environmental integrity

India’s Identified Priority Sectors

To operationalise Articles 6.2 and 6.4, the Indian government has identified an initial set of 13 eligible activities, balancing developmental and climate objectives.

For the next three years, carbon credits can be generated in priority sectors such as:

• Renewable energy with storage
• Solar thermal power plants and offshore wind
• Green hydrogen and compressed biogas
• Advanced mobility solutions, including fuel cells
• High-end energy-efficiency technologies
• Sustainable aviation fuel (SAF)