Paris Agreement Crediting Mechanism and India's Participation

The adoption of the Paris Agreement Crediting Mechanism (Article 6.4) at COP29 in Baku marked a significant transition from the Clean Development Mechanism. This mechanism aims to enhance the efficiency of climate finance and operationalize carbon markets under Article 6 of the Paris Agreement.

Carbon Market Collaborations

• The A6 Implementation Partnership records 89 cooperation arrangements under Article 6.2, involving 58 Parties, showcasing the growing trend in bilateral and plurilateral collaborations.
• India's Joint Crediting Mechanism (JCM), initiated in 2025, signifies the operationalization of Article 6.2, marking a new phase in international climate cooperation.

Significance of India's Participation

• Facilitates the transfer of advanced technologies and supports research and development.
• Enhances bilateral relations and channels climate finance into the Indian economy, aiding socio-economic transformation.
• Provides a platform to accelerate low-carbon industrial and technological transformation.

India's Strategy and Eligible Activities

• India has identified 13 eligible activities focusing on developmental and climate goals, incorporating technologies like renewable energy, green hydrogen, and sustainable aviation fuel.
• Emphasis on emerging solutions like offshore wind and large-scale energy storage to diversify the energy mix.
• Focus on deep decarbonization in industries like steelmaking and cement through technologies like carbon capture and storage.

Policy and Implementation Steps

• Strengthening the domestic framework with a Designated National Authority for A6 is necessary to detail the scope and rules for carbon trading.
• Streamlining project clearances, with a single-window clearance system to expedite project registration, is crucial.
• Building a removals market to meet the global demand for carbon removals, using activities like Biochar and Enhanced Rock Weathering.
• Enhancing South–South collaboration to share systems, knowledge, and financing models across developing countries.

India's engagement in A6 not only signifies a technical advancement but also opens avenues for accessing advanced technologies, attracting climate-aligned finance, and strengthening international partnerships.