What is the Paris Agreement and Article 6?

The Paris Agreement is an international climate treaty aimed at reducing global warming.

Article 6 allows countries to work together to reduce carbon emissions and earn carbon credits for doing so.

Carbon credits are certificates earned when a country or project reduces greenhouse gas emissions. These credits can be sold or transferred to other countries.

What happened at COP29?

At COP29 (held in Baku, Azerbaijan), the carbon market rules under Article 6 were made fully operational. This means countries can now clearly and legally trade carbon credits under the Paris Agreement.

A key decision was the adoption of Article 6.4, which replaces the old Clean Development Mechanism (CDM) with a more transparent and stricter system.

What did India do?

In August 2025, India signed a Joint Crediting Mechanism (JCM) with Japan. This activated Article 6.2, which allows countries to cooperate bilaterally (country to country).

This marks India’s official entry into global carbon markets under the Paris Agreement.

Why is Article 6 important for India?

India’s participation matters because it can:

• Bring advanced low-carbon technology into India
• Attract foreign climate finance
• Support research and innovation
• Strengthen international partnerships
• Help India meet its climate goals while growing economically

Article 6 is not only about selling carbon credits. Its real value lies in helping India shift towards cleaner industries and energy systems.

What sectors will benefit in India?

The Indian government has identified 13 priority activities for the next three years, including:

• Renewable energy with storage
• Offshore wind and solar thermal plants
• Green hydrogen and bio-gas
• Electric and fuel-cell mobility
• Energy-efficient technologies
• Sustainable aviation fuel

These sectors help reduce emissions while supporting economic growth.

Why is this crucial for India’s future?

India still depends heavily on coal. New technologies like:

• Offshore wind
• Large-scale energy storage
• Green hydrogen
• Carbon capture in cement and steel

can help India reduce emissions without harming development.

What challenges remain?

To fully benefit from Article 6, India must:

1. Create clear domestic rules for carbon trading
2. Speed up project approvals, which currently take too long
3. Develop carbon removal markets (like biochar)
4. Strengthen cooperation with other developing countries

In simple terms:

India is now using global climate rules to reduce pollution, attract clean technology, earn carbon credits, and grow sustainably, making Article 6 a powerful tool for its future.