Editorials/Opinions Analysis For UPSC 13 January 2026
Content Why Article 6 is a powerful tool for India ? Equality isn’t the Enemy of Growth; High Inequality Erodes Social Trust Why Article 6 is a powerful tool for India ? Why in News ? Article 6 carbon markets made fully operational at COP29 → marks shift from rule-making to implementation. 89 cooperation arrangements under Article 6.2 across 58 Parties → rapid expansion of bilateral/plurilateral carbon trade. Adoption of Paris Agreement Crediting Mechanism (PACM) under Article 6.4 → formal transition from Clean Development Mechanism. August 2025: India signs Joint Crediting Mechanism (JCM) → operationalises Article 6.2 with Japan. Relevance GS Paper I (Geography – Environment) Climate change mitigation mechanisms Energy transition & decarbonisation pathways GS Paper II (Governance & International Relations) Global climate governance (Paris Agreement) India–Japan strategic cooperation International institutions & rule-based order Practice Question “Article 6 of the Paris Agreement represents a shift from climate ambition to climate implementation.” Examine how India can leverage Article 6 to achieve growth-compatible decarbonisation.(250 Words) What is Article 6? Article 6.2: Bilateral / plurilateral transfer of ITMOs (Internationally Transferred Mitigation Outcomes). Requires corresponding adjustments to prevent double counting. Article 6.4: Centralised UN-supervised crediting mechanism (successor to CDM). Emphasis on additionality, environmental integrity, transparency. Article 6.8: Non-market approaches (capacity building, tech cooperation). Constitutional Dimension Article 48A & 51A(g): Environmental protection → constitutional basis for climate action. International law alignment: India exercising CBDR-RC within Paris framework. Domestic legal gap: No dedicated Carbon Markets Act yet; reliance on executive rules under Energy Conservation Act (amended). Governance & Institutional Architecture Designated National Authority (DNA) for Article 6 appointed. Pending clarity on: Rules for Letters of Authorisation (LoA). Application of corresponding adjustments. Interplay with Indian Carbon Market (ICM). Need for Cabinet-level Steering Committee for inter-ministerial coordination (Power, MNRE, Steel, Civil Aviation, MoEFCC). Economic & Developmental Significance for India Climate finance mobilisation: Bridges India’s climate finance gap (India needs ~$170 bn/year till 2030 – various estimates). Technology transfer: Offshore wind, green hydrogen, CCUS, SAF, fuel cells. Industrial competitiveness: Prepares Indian exports for CBAM-like carbon border measures. Growth-compatible decarbonisation: Aligns with India’s developmental state model, not growth sacrifice. Strategic Significance of India’s Article 6 Participation From credit-selling to transformation tool: Focus on industrial & technological leapfrogging, not low-cost offsets alone. Bilateral diplomacy: Deepens strategic partnerships beyond trade and defence. Resilient trade relationships: Carbon-constrained global economy → carbon credentials become trade currency. India’s Identified Priority Activities (13 sectors) High-end, future-facing sectors: Renewable energy + storage Offshore wind, solar thermal Green hydrogen, compressed bio-gas Fuel-cell mobility Advanced energy efficiency Sustainable Aviation Fuel (SAF) CCUS in cement & steel Marine & emerging energy technologies Overview: Shift away from legacy CDM-style projects (small renewables). Direct alignment with Net Zero 2070 and deep decarbonisation pathways. Environmental & Climate Impact Coal-heavy energy mix reality: Article 6 enables energy diversification without abrupt transition shocks. Hard-to-abate sectors addressed: Steel, cement, aviation → otherwise outside scope of conventional mitigation. Carbon removals potential: Biochar, Enhanced Rock Weathering → long-term negative emissions. Data & Evidence 89 Article 6.2 cooperation arrangements across 58 Parties. Voluntary carbon projects in India: AFOLU projects take ~1,600 days to register vs <400 days in rest of Asia (CEEW). Global demand for carbon removals projected to rise sharply post-2030 (IPCC AR6 pathways). Key Challenges Institutional & Regulatory Absence of detailed Article 6 operational rules. Risk of policy uncertainty deterring investors. Administrative Multi-layered project approvals. Land-intensive projects → federal & local coordination bottlenecks. Market Design Risks Poor-quality credits → reputational risk. Weak MRV could undermine environmental integrity. Equity & Ethics Risk of enclave decarbonisation without local co-benefits. Community consent & benefit-sharing concerns. Way Forward Enact a Carbon Markets Framework Law: Legal certainty, dispute resolution, investor confidence. Single-window clearance system for Article 6 projects. Clear LoA & corresponding adjustment rules. Integrate Indian Carbon Market with Article 6 cautiously. Develop carbon removals ecosystem (R&D + standards). Lead South–South cooperation: Shared MRV platforms, pooled finance, technical assistance. Align with SDGs 7, 9, 12, 13 and principles of Just Transition. Prelims Pointers Article 6 ≠ carbon tax. Article 6.2 = bilateral ITMOs; 6.4 = UN-supervised crediting. JCM is Article 6.2, not 6.4. Corresponding adjustment prevents double counting, not double claiming. Equality isn’t the Enemy of Growth; High Inequality Erodes Social Trust Core Argument Growth without distributive justice weakens social trust, democratic legitimacy, and long-term economic sustainability. Conceptual Clarity Equality ≠ absolute sameness Refers to fair access, capability enhancement, and dignity, not uniform outcomes. Inequality problem: When it becomes structural, persistent, and politically entrenched, it harms growth and democracy. Relevance GS Paper I (Indian Society) Inequality, social cohesion, trust deficit GS Paper II (Polity & Governance) Democratic legitimacy Role of the state in welfare Constitutional values Practice Question Why is high inequality considered detrimental to long-term economic growth?Explain with reference to demand, human capital, and innovation.(250 Words) Economic Dimension Inequality is not growth-neutral: Extreme concentration of wealth → lower aggregate demand. Rich save more; poor consume more → inequality depresses demand-led growth. Human capital distortion: Unequal access to education, health, nutrition → suboptimal workforce productivity. Misallocation of talent: High inequality limits intergenerational mobility → innovation suffers. Empirical insight: IMF & World Bank studies: high inequality shortens growth spells and raises volatility. Social Dimension Erosion of social trust: Visible disparities undermine belief in fairness of institutions. Perception of rigged systems: Wealth → political influence → policy capture. Psychological impact: Inequality fuels resentment, alienation, and social fragmentation. Outcome: Rise of populism, identity politics, and social unrest. Governance & Democratic Dimension Democracy depends on legitimacy: Citizens must believe outcomes are not pre-determined by wealth. Inequality weakens democratic consent: Policy debates shift from evidence to resentment. Elite capture: Regulatory frameworks, taxation, subsidies skewed towards affluent interests. Result: Decline in trust in state capacity and democratic institutions. Ethical & Constitutional Dimension Constitutional morality: Articles 14, 15, 38, 39(b)-(c) mandate reduction of inequalities. Ethical economy: Growth that excludes large sections violates principles of justice, dignity, and fraternity. Equality as enabling condition: Not anti-growth, but pro-growth in the long run. Political Economy Insight False binary exposed: Growth vs equality is a misleading dichotomy. Real danger: Inequality reshapes politics by: Turning policy into distributional conflict. Weakening institutional credibility. Historical lesson: Stable high-growth societies invested early in broad-based welfare and opportunity. Indian Context India’s growth paradox: High GDP growth with: Persistent wealth concentration. Unequal access to quality public services. Visible fault lines: Education quality gaps. Health expenditure burden on poor. Informal sector precarity. Risk: Growth loses social legitimacy → reform fatigue and resistance. Challenges Policy focus skewed towards headline growth: Distribution treated as secondary. Weak redistributive capacity: Limited tax progressivity. Implementation gaps: Welfare leakage, uneven state capacity. Narrative problem: Equality framed as populism, not productivity-enhancing. Way Forward Reframe equality as growth enabler: Focus on capability-based equality. Strengthen public goods: Health, education, nutrition as productivity investments. Progressive but efficient taxation: Wealth and inheritance debates grounded in data. Institutional neutrality: Reduce policy capture; ensure rule-based governance. Inclusive growth narrative: Growth + fairness as complementary, not competing goals. Prelims Pointers Equality in Indian Constitution includes substantive equality, not just formal. Inequality affects social trust, not merely income distribution. IMF links inequality with shorter growth durations.