Fair trade

• Indian government is aiming to accelerate the transition to carbon markets ahead of the 29th Conference of Parties in Baku, Azerbaijan.
• Article 6 of the Paris Climate Agreement outlines the operationalization of carbon markets.
• Carbon markets incentivize climate action by allowing trading in carbon credits generated by greenhouse gas reduction or removal.
• Article 6 provides guidelines on carbon-reduction activities and verification mechanisms, and how countries can enter into bilateral agreements.
• Despite their revival, confusion remains about how credits can be verified.
• India’s voluntary commitment to generate half its electricity from non-fossil energy sources by 2030 will attract several carbon-reduction projects.
• Private sector enterprises in India are setting up innovative forestry projects that can be claimed as credits by multinational companies.
• India’s iron and steel industries are expected to meet emission intensity standards by 2025, potentially launching India’s carbon market.