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Prelims 2025 · Q34 · Carbon markets & climate finance

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?

Show answer

Answer: A. Statement I is correct: Article 6 of the Paris Agreement is a central topic in COP talks. Statement II is correct and explains it: Articles 6.2 and 6.4 set the rules for carbon markets (country-to-country trading and a UN-supervised crediting mechanism). Statement III is correct and explains it too: Article 6.8 sets up non-market approaches for countries to cooperate. Both explain why Article 6 is so widely discussed.

Watch for: Students often remember Article 6 only for carbon markets and forget Article 6.8 on non-market approaches.

Why the other options are wrong
  • B. Wrong: both market (6.2, 6.4) and non-market (6.8) parts are reasons Article 6 is discussed.
  • C. Wrong: both Statement II and Statement III are correct.
  • D. Wrong: both Statement II and Statement III are correct.

Source to check: Paris Agreement text, Article 6 (unfccc.int); UNFCCC pages on Article 6.

Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.