Article 6 (Paris Agreement)

    ESG & Governance

    The part of the Paris Agreement that allows countries to cooperate on emission cuts, including by trading carbon credits.

    Article 6.2 allows countries to transfer emission reductions to each other through bilateral deals, with corresponding adjustments to avoid double counting. Article 6.4 creates a UN-supervised crediting mechanism. In August 2025, India and Japan signed a Memorandum of Cooperation on a Joint Crediting Mechanism under Article 6.2, sharing credits from low-carbon projects in India.

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