MARKET MECHANISM DEBATE: ARTICLE 6 KEY TO EMISSIONS REDUCTION

The 29th United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, concluded amid widespread disappointment and criticism.

- VARUN MOHAN PhD scholar at National Institute of Advanced Studies, Bengaluru. Also research fellow with the Earth System Governance Project

Though it is considered a failed COP, one part of the compromise deal was the operationalisation of Article 6 of the Paris Agreement. Article 6 of the 2015 Paris Agreement establishes a framework for international cooperation to achieve climate goals through market-driven and non-market mechanisms. It facilitates emissions reductions via three pathways: Article 6.2, enabling nations to trade surplus reductions as Internationally Transferred Mitigation Outcomes (ITMOs) to meet their Nationally Determined Contributions (NDCs); Article 6.4, creating a UN-regulated global carbon market to certify and trade credits; and Article 6.8, focusing on non-market approaches like technology transfer, capacity building, and sustainable development to support vulnerable communities.