Carbon Markets
Paris Agreement Architecture and Article 6
The Paris Agreement (2015) established a global framework for climate action with Nationally Determined Contributions (NDCs) as national commitments. Article 6 of the Paris Agreement created a framework for international carbon markets — allowing countries to transfer emission reductions to meet their NDCs through bilateral arrangements (Article 6.2) or a centralised UN mechanism (Article 6.4). The EU ETS is a unilateral regional carbon market; its integration with CDR would be a primarily domestic policy, but the precedent could influence Article 6 negotiations and the design of carbon markets globally.
- Article 6.2: Bilateral cooperative approaches — countries can trade emission reductions (ITMOs: Internationally Transferred Mitigation Outcomes).
- Article 6.4: Centralised UN-supervised carbon crediting mechanism; modelled partly on Clean Development Mechanism (CDM) of Kyoto Protocol.
- EU ETS and Paris Agreement: The EU's 2030 NDC commits to 55% net emissions reduction from 1990 levels (Fit for 55 package); ETS is the primary instrument.
- Carbon Removals Certification Framework (CRCF): EU regulation under development to certify carbon removal activities — including BECCS, DAC, and natural sinks — providing the MRV backbone for potential ETS integration.
- India's context: India does not participate in the EU ETS, but the Carbon Credit Trading Scheme (CCTS) launched in 2023 under the Energy Conservation (Amendment) Act 2022 will create India's domestic carbon market; design lessons from EU ETS are directly relevant.
● Tracked since March 31, 2026 · last seen September 07, 2026 · updates as the daily brief publishes