IETA has released a new position paper outlining recommendations to support the development of a credible, robust, and investment-friendly Article 6 framework in India, as the country advances implementation of its domestic Carbon Credit Trading Scheme (CCTS) and enhanced climate targets under the Paris Agreement.
The paper examines India’s evolving role in international carbon markets and the strategic opportunity presented by Article 6 of the Paris Agreement. It explores how Article 6 can support cost-effective mitigation, mobilise international climate finance, accelerate implementation of India’s Nationally Determined Contribution (NDC), and support the country’s long-term low-carbon development objectives.
As global demand for high-integrity carbon credits continues to grow, the paper highlights India’s strong potential to position itself as one of the leading Article 6 supply markets globally, while leveraging carbon markets to drive decarbonisation and attract investment.
The paper provides a series of recommendations to strengthen India’s Article 6 framework, including:
• Accelerating bilateral Article 6 cooperation agreements and implementation readiness
• Establishing a clear and transparent authorisation and governance framework
• Expanding the list of eligible Article 6 activities, including nature-based solutions and removals
• Aligning India’s Article 6 framework with NDC implementation and accounting requirements
• Strengthening institutional coordination, legal certainty, and stakeholder capacity-building.
The paper also highlights the importance of balancing international carbon market participation with domestic climate objectives, while ensuring market integrity, long-term competitiveness, and investment certainty for project developers and international buyers.
IETA noted that a clear, predictable, and market-aligned framework will be critical to unlocking India’s significant potential to attract climate finance, scale mitigation activities, and position itself as a leading supplier of high-integrity carbon credits in global carbon markets.
