n international climate governance, Article 6 of the Paris Agreement represents a beacon of hope and innovation. It provides a mechanism through which nations can cooperatively tackle the pressing challenge of climate change. The operationalisation of this provision at the recent conference of parties (COP-29) marked a watershed moment, promising the establishment of robust carbon markets capable of delivering cost-effective emission reductions.

For a country like Pakistan, grappling with both climate vulnerabilities and economic constraints, the implications of Article 6 hold profound significance. Yet, its promise is tempered by inherent complexity, unresolved challenges and the need for meticulously equitable implementation on the basis of climate justice.

Article 6 provides a framework for leveraging market-based solutions to combat climate change. It has two key pillars—internationally transferred mitigation outcomes (ITMOs) under Article 6.2 and the Paris Agreement Crediting Mechanism (PACM) under Article 6.4. The ITMOs enable countries to cooperate by transferring emissions reductions across borders to meet their nationally determined contributions (NDCs). This approach fosters flexibility and reduces the economic burden of mitigation.

However, the effectiveness of ITMOs hinges on rigorous accounting to prevent double counting. The operationalisation of ITMOs, while laudable, faces critical hurdles, including discrepancies in accounting methodologies for single- and multi-year NDCs, which complicate the application of corresponding adjustments. These technical challenges pose risks to the credibility of emissions reductions, potentially undermining the very objectives that ITMOs aim to achieve.

Under Article 6.4, the PACM establishes a regulated marketplace for carbon credits, offering a standardised platform to generate and trade emissions reductions. This mechanism prioritises environmental and social safeguards, ensuring that mitigation activities deliver tangible, measurable and long-term climate benefits.

The decisions taken at COP-29 underscore the importance of robust verification and compliance mechanisms to maintain the integrity of these credits. Inconsistencies in credit verification and reliance on voluntary reporting frameworks create vulnerabilities, opening the door to market manipulation and greenwashing. The supervisory body overseeing the PACM has made strides by adopting standards for removals and methodologies, but gaps in governance and enforcement persist, limiting the transformative potential of this mechanism.

One of the most compelling features of Article 6 is its provision for adaptation financing through a levy on proceeds from carbon market activities. Article........

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