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UPSC Prelims 2025 · Environment · Rules for the Planet
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.
- (a) Both Statement II and Statement III are correct and both of them explain Statement I
- (b) Both Statement II and Statement III are correct but only one of them explains Statement I
- (c) Only one of the Statements II and III is correct and that explains Statement I
- (d) Neither Statement II nor Statement III is correct
Show the answer and explanation
Answer: (a) Both Statement II and Statement III are correct and both of them explain Statement I
Article 6 is discussed so much because it covers BOTH carbon markets (6.2, 6.4) and non-market cooperation (6.8).
Statement by statement
1. ✓ CORRECT Article 6 was the last piece of the Paris “rulebook”. Its rules were finally settled at COP29, Baku (2024), after years of talks.
2. ✓ CORRECT — 6.2 and 6.4 6.2: countries trade emission cuts directly (ITMOs). 6.4: a UN-supervised crediting mechanism, the successor to the Kyoto CDM.
3. ✓ CORRECT — 6.8 6.8 covers non-market approaches: cooperation through finance, technology transfer and capacity building, with no credits traded.
The idea
Under Paris each country has its own target. Article 6 is the part that lets countries cooperate to reach those targets. It gives three routes: two use a market (credits are traded) and one does not.
6.2: two countries trade emission cuts directly → 6.4: a UN-supervised mechanism issues credits → 6.8: help through finance, technology and training, with no credits
Why the others are wrong
(b) Assumes only the carbon market explains the attention. Non-market cooperation (6.8) is what developing countries push for, so it drives the debate too.
(c) Statement III is correct too, because 6.8 is non-market.
The trap
The instinct is “Article 6 = carbon markets” and stop there, which leads to (b) or (c). But 6.8 is explicitly non-market, and it is equally part of why Article 6 keeps coming up.
Also know
India launched its Carbon Credit Trading Scheme in 2023 and notified a list of activities it will allow for Article 6.2 trading.
🔒 Article 6: 6.2 bilateral trading (ITMOs) · 6.4 UN crediting mechanism · 6.8 non-market. Rulebook completed at COP29, Baku.