Inside Article 6: How the UN Plans to Scale Global Carbon Markets - Perumal Arumugam (UNFCCC)

Article 6 of the Paris Agreement serves as the foundational framework for global carbon markets, transitioning from the Kyoto Protocol’s legacy mechanisms to the Paris Agreement Crediting Mechanism (PACM) and bilateral Article 6.2 cooperation. Perumal Arumugam, a manager at the UNFCCC, details the ongoing operationalization of these systems, emphasizing the development of integrated registry infrastructure and interoperability hubs to ensure transparent, consistent accounting of mitigation outcomes. By establishing multilateral governance and standardized GHG quantification, the UNFCCC aims to provide clear investment signals that channel climate finance toward the 1.5-degree temperature goal. As countries align their Nationally Determined Contributions with these mechanisms, the focus shifts toward scaling high-quality supply and addressing the reporting burdens that previously hindered market efficiency. This evolution represents a critical step in mobilizing private and public capital to meet global climate targets by 2030.