GS3 · 15 marks · 250 words

What were the various market mechanisms under the Kyoto Protocol? What is Article 6 of the Paris Climate Change Agreement? Explain the significance of the global carbon market in achieving net-zero targets.

Answered by 6 toppers · CSE 2023–2025

Climate ChangeEnvironmental Governance

Syllabus: Conservation, environmental pollution and degradation, environmental impact assessment.

How toppers approached it

From all 6 answers · about 250 words · 67% drew a diagram.

Opening

  • No separate opening83%
  • A date or context17%

Body

  • Points and prose50%
  • Points50%

Close

  • A summary67%
  • A way forward33%

The toppers’ answers

Raghav JhunjhunwalaAIR 4 · CSE 2025 · 153 wordsTheir whole copy

Opening

Kyoto Protocol was first ever binding agreement to reduce GHG emissions, via well defined instruments.

Body · points and prose

Diagram
- Kyoto Instruments - (1) → Jt. Implementation (Developed + Developing cooperate) - (2) → CDM (Clean Devt. mechanism) - (3) → Emissions trading (of GHG certificates)

Article 6 : Paris Deal (COP-21)

  1. Builds upon Kyoto Instruments towards markets based approach.

  2. Focus: From GHG to carbon (CO2)

  3. Recently finalized @ COP 29 with further details TBD at Baku meet (2026).

  4. Encourages cross country deliberations over ongoing successful models of carbon trading today.

Diagram
- New mechanisms planned (in addition to non market approaches) - a) knowledge sharing - b) Tech transfer - c) Financial support

Significance of Global carbon markets:

  1. Preserves Autonomy of Industries

  2. Incentivizes, rather than penalizes.

  3. Rewards the low Emitter by (certificate gain & sale)

  4. Promotes innovation into low Emission Technologies.

  5. lets market's price discovery by mutual trade

  6. limits govt over presence

Diagram
- Challenges of carbon markets - (1) Doesn't guarantee Emission reduction (like carbon tax) - (2) Lack of policy clarity (as to how certificates are to be distributed) - (3) Lack of digital dedicated trading infrastructure - (4) Non binding legally - (5) Double counting

M.S. Ahluwalia recommendations

  1. Initially, give more permits & gradually reduce it for just Energy transition.

  2. Inter-ministerial cooperation

  3. Take Industry inputs before Policy forming.

Close · a summary

Thus, carbon markets although not widespread, are expected to play a greater role in Green Future tomorrow.

More on Climate Change

Mitigation and adaptation, emissions and targets, the UNFCCC and its conferences, climate finance, India's stated positions.

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