Correct Answer: Paris Agreement
The modern United Nations carbon credit mechanism operates primarily under Article 6 of the Paris Agreement, adopted in 2015 under the United Nations Framework Convention on Climate Change (UNFCCC). Article 6 provides a framework for countries to cooperate voluntarily by trading carbon credits and implementing projects that reduce greenhouse gas emissions. These market-based mechanisms encourage investment in renewable energy, forest conservation, clean technologies, and sustainable development. While the Kyoto Protocol introduced earlier carbon trading systems such as the Clean Development Mechanism (CDM), the Paris Agreement established the current international framework that guides future carbon markets and global climate cooperation. The agreement aims to help countries achieve their Nationally Determined Contributions (NDCs) while limiting global temperature rise.
- Agreement: Paris Agreement.
- Relevant Provision: Article 6.
- Purpose: International carbon trading.
- Objective: Reduce greenhouse gas emissions.
- Correct Answer: Paris Agreement.