Consider the following statements: 1) Statement I: Article 6 of the Paris Agreement on climate change is frequently discussed in global discussions on sustainable development and climate change. 2) Statement II: Article 6 of the Paris Agreement on climate change sets out the principles of carbon markets. [2025]

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.

Both Statement II and Statement III are correct and both of them explain Statement I
Both Statement II and Statement III are correct but only one of them explains Statement I
Only one of the Statements II and III is correct and that explains Statement I
Neither Statement II nor Statement III is correct

Article 6 is central to global climate negotiations as it provides mechanisms for international cooperation through market and non-market approaches — essential for sustainable development and climate finance.

Article 6 of Paris Agreement

It helps countries work together to reduce their carbon emissions. It sets out options for countries and companies to trade offsets, helping them meet the goals they set to reduce greenhouse gas emissions in their climate action plans, known as nationally determined contributions (NDCs). One option allows two countries to set their own terms for a bilateral carbon trading agreement, which is known as Article 6.2. The second aims to create a central, UN-managed system for countries and companies to begin offsetting their carbon emissions and trading those offsets, known as Article 6.4.

Article 6.8 addresses non-market international cooperation among governments. These new rules cover both government-to-government and government-to-private sector markets. Non-market approaches (NMAs) may include social inclusivity, financial policies and measures, circular economy, blue carbon, just transition of the workforce, and adaptation benefit mechanism.

The Paris Agreement is a legally binding international treaty on climate change.
It was adopted by 196 Parties at the COP21 in Paris (France) in 2015.
It entered into force in 2016 after ratification by 55 countries that account for at least 55% of global emissions India signed and ratified in 2016.
The agreement set a goal of limiting global warming to well below 2°C compared to pre-industrial levels. The agreement calls for zero net anthropogenic GHG emissions to be reached during the second half of the 21st century.

Nationally Determined Contributions (NDCs)