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?
Explanation
Article 6 of the Paris Agreement provides a framework for international cooperation to help countries achieve their climate targets (NDCs) in a flexible and cost-effective manner.
Statement I is correct. Article 6 is frequently discussed because it operationalizes how countries can work together—making it central to global climate negotiations and sustainable development efforts.
Statement II is correct. A major component of Article 6 is the creation of carbon market mechanisms, allowing countries to trade emission reductions through tools like ITMOs and UN-backed mechanisms, thereby reducing costs of mitigation.
Statement III is correct. Article 6 also includes non-market approaches, such as technology transfer, capacity-building, and financial cooperation, enabling countries to collaborate without engaging in carbon trading.
Thus, both market and non-market mechanisms together form the core of Article 6, and both Statements II and III explain Statement I.