India stands to gain from the trading of carbon credits
SummaryThe establishment of a global carbon market could significantly impact India's domestic carbon market, but a standardized system within a global carbon market could address this imbalance and benefit developing countries
At the CoP26 summit in Glasgow, Prime Minister Narendra Modi emphasized the need for collective action and cooperation to combat climate change. Article 6 of the Paris Agreement, while being reflective of this spirit, allows countries to collaborate to achieve emission reduction targets set in their Nationally Determined Contributions (NDC). Among these provisions, Article 6.4 is similar to the Clean Development Mechanism previously constituted under the Kyoto Protocol and establishes a mechanism for trading green house gas (GHG) emission reductions between countries under the supervision of the Conference of Parties.