UPSC Prelims 2025 Q34: Paris Agreement Article 6 — Explained
Consider the following statements:
Statement I: Article 6 of the Paris Agreement on climate change is frequently discussed in global discussions on sustainable development and climate change.
Statement II: Article 6 of the Paris Agreement on climate change sets out the principles of carbon markets.
Statement III: Article 6 of the Paris Agreement on climate change intends to promote inter-country non-market strategies to reach their climate targets.
Which one of the following is correct in respect of the above statements?
- Both Statement II and Statement III are correct and both of them explain Statement I
- Both Statement II and Statement III are correct but only one of them explains Statement I
- Only one of the Statements II and III is correct and that explains Statement I
- Neither Statement II nor Statement III is correct
Answer: (a) Both Statement II and Statement III are correct and both of them explain Statement I
Statement-wise explanation
- STATEMENT-I: correct — Article 6 is the part of the Paris Agreement (2015) that lets countries cooperate with each other to meet their Nationally Determined Contributions (NDCs). Its rulebook was argued over for years. The basic guidance came at COP26 in Glasgow (2021), and the remaining rules were settled at COP29 in Baku (November 2024). This is why it is a regular topic in debates on climate finance and sustainable development.
- STATEMENT-II: correct — Article 6.2 sets out 'cooperative approaches'. Under these, countries trade emission reductions with each other as Internationally Transferred Mitigation Outcomes (ITMOs), and corresponding adjustments prevent the same reduction being counted twice. Article 6.4 creates a UN-supervised crediting mechanism, now called the Paris Agreement Crediting Mechanism. Together these paragraphs are the principles of international carbon markets. This is a main reason Article 6 is discussed so often, so it explains Statement-I.
- STATEMENT-III: correct — Articles 6.8 and 6.9 recognise 'non-market approaches' (NMAs). These are cooperation between countries through finance, technology transfer and capacity building, with no trading of credits. A Glasgow Committee on Non-market Approaches was set up to put this framework into practice. Article 6 therefore covers both market and non-market cooperation between countries, and this second pathway also explains why Article 6 matters in global discussions.
How to eliminate
Statement-I is a soft, general claim ('frequently discussed'). Claims like this about a well-known treaty article are almost never false, so treat it as true and focus on Statements II and III. Most aspirants know Article 6 means carbon markets, which makes Statement II safe and removes the option where neither statement is correct. The deciding fact is that Article 6 has three tracks: 6.2 (bilateral trading of ITMOs), 6.4 (a UN-run crediting mechanism) and 6.8 (non-market approaches). Once you know Article 6.8 exists, Statement III is true, and the option saying only one of them is correct drops out. The last step is choosing between 'both explain' and 'only one explains'. Both statements describe what Article 6 does, so each one gives a reason it is discussed, and neither is a side detail. This question cannot be fully solved without knowing Article 6.8, so remember: Article 6 = 6.2 market + 6.4 market + 6.8 non-market.
Know more
Article 6 of the Paris Agreement lets countries cooperate voluntarily to meet their NDCs, and to aim higher than they could alone. It has three working tracks:
| Paragraph | Type | How it works | Unit / body |
|---|---|---|---|
| 6.2 | Market (bilateral/plurilateral) | Countries trade emission reductions directly under their own agreements | ITMOs; corresponding adjustments |
| 6.4 | Market (centralised) | UN-supervised crediting of projects, successor to the Kyoto Protocol's Clean Development Mechanism | Paris Agreement Crediting Mechanism, run by a Supervisory Body |
| 6.8–6.9 | Non-market | Cooperation through finance, technology and capacity building, with no trading | Glasgow Committee on Non-market Approaches |
Key ideas
- Corresponding adjustment: when a country transfers a reduction abroad, it adds it back to its own emissions account. This stops the same tonne being counted twice.
- Share of proceeds: a portion of 6.4 credits goes to the Adaptation Fund, which helps vulnerable countries.
- Overall mitigation: part of 6.4 credits is cancelled so that the trading brings a net benefit to the atmosphere and is not just an offset.
- Timeline: Paris Agreement adopted 2015 → Article 6 rulebook guidance at COP26 Glasgow (2021) → remaining rules finalised at COP29 Baku (2024).
India and Article 6
- India notified a National Designated Authority for the Implementation of the Paris Agreement (NDAIAPA) in 2022. It decides which projects may sell credits abroad.
- India finalised a list of eligible activities for Article 6.2 trading in 2023. These are mainly emerging technologies such as green hydrogen, offshore wind, storage-linked renewables and carbon capture.
- India signed a Joint Crediting Mechanism agreement with Japan under Article 6.2 in 2025.
- At home, India runs the separate Carbon Credit Trading Scheme (2023), which creates the Indian Carbon Market. Do not confuse this domestic market with Article 6's international markets.
In the news
COP29 in Baku (November 2024) was called the 'carbon markets COP' because it finalised the remaining Article 6 rules after nearly a decade of talks. This made international carbon trading under the Paris Agreement operational. India's own carbon-market build-out (the Carbon Credit Trading Scheme and its Article 6.2 activity list) kept the topic in the news before Prelims 2025.
NCERT Concepts to Revise
- Article 6 carbon markets: Statements II and III both describe what Article 6 provides for, so you need its full scope.
- Carbon market: Statement II uses the term 'carbon markets'. Know what is traded and between whom.
- Carbon credit: Article 6 trading deals in credits representing one tonne of CO₂e, the basic unit behind Statement II.
- Kyoto Protocol: Article 6.4's crediting mechanism succeeds the Kyoto Protocol's Clean Development Mechanism, a frequent comparison in questions.
- Compliance carbon market: Article 6 markets are government-to-government. Compare them with compliance markets that are created by national law.
- Voluntary carbon market: Helps separate treaty-based Article 6 trading from credits that companies buy voluntarily, a common UPSC trap.