South and South-West Asia (SSWA) is one of the engines for growth in the world. It’s a home for nearly two billion people and a fast-expanding economy. While the countries in the region enjoy the benefits brought by rapid development, they are also exposed to serious climate risks, particularly from rising greenhouse gas emissions that drive extreme weather events and environmental degradation. Countries across SSWA are therefore seeking new ways to accelerate their transition to low-carbon economies. Article 6 of the Paris Agreement is a mechanism to help countries achieve their nationally determined contributions (NDCs) through cooperative approaches. For SSWA countries, this mechanism can unlock green investment, support technological innovation, and promote sustainable growth. 

SSWA countries’ emissions

Note: Data retrieved from GHG emissions of all world countries, published in 2025 by the Emissions Database for Global Atmospheric Research (EDGAR). Available at https://edgar.jrc.ec.europa.eu/emissions_data_and_maps

In 2023, SSWA countries accounted for 12 per cent of global emissions, the SSWA region faces a distinct challenge: its strong economic growth remains tightly linked to rising GHG emissions. This contrasts with advanced economies that have successfully decoupled growth from emissions (Figures 1 & 2). Harnessing international cooperation mechanisms, particularly Article 6 of the Paris Agreement, is essential to help SSWA countries transition into a sustainable development path.

Figure 2 Change in CO2 emissions and GDP in selected countries

Note: Growth rates are calculated relative to 1990 levels. Data retrieved from Our World in Data available at https://ourworldindata.org/grapher/co2-emissions-and-gdp

South and South-West Asian countries' preparedness for Article 6

Many countries have already started work to enable their participation in the mechanism. International support for these efforts is also expanding. Various organizations support countries in developing national strategies, institutional frameworks and pilot projects for credit transactions. Those organizations or initiatives include, but are not limited to, the Global Green Growth Institute (GGGI), the?Partnership for Market Implementation (PMI) administered by the World Bank Group, and the Article 6 Implementation Partnership (A6IP) launched by Japan’s Ministry of the Environment.

Table 1 Status of Article 6 Implementation in SSWA Countries

Note: Based on author’s collection. The information presented is not exhaustive and may not capture all recent developments, agreements and support

Challenges of SSWA countries to get ready for Article 6

Participating in Article 6 entails complexity. It requires technical expertise to understand the mechanism, the objectives of carbon markets and the core principles such as additionality, permanence and avoidance of double counting. Participation also demands robust institutional capacity. The Article 6 rulebook set by the United Nations Framework Convention on Climate Change (UNFCCC) requires participating countries to have comprehensive national strategies and institutional frameworks in place. Countries also need robust monitoring and tracking systems to apply corresponding adjustments. Furthermore, some countries in the SSWA region have experienced political instability, which could make them less attractive for investment and cooperation.

Recommendations for the way forward

Article 6 presents vast opportunities for SSWA countries to enhance their climate actions and attract finance from abroad. However, SSWA countries need to address key requirements to participate in the mechanism:     

1. Building the right infrastructure and capacity

2. Engaging the private sector and promoting broader benefits

3. Strengthening regional and international cooperation

To effectively participate in the Article 6 mechanism, SSWA countries need a robust system to track and report carbon transactions. This requires countries to choose the right registry option, such as developing their own national registry or using one provided by the UNFCCC or other organizations such as the Gold Standard. SSWA countries should also build the capacity and mechanisms to apply corresponding adjustments robustly, thereby avoiding double counting.

The private sector will play an important role in bringing Article 6 to reality. It is essential for governments to raise awareness and understanding within the private sector, build technical capacity, and establish clear policy frameworks to encourage and facilitate participation. Transparent national strategies and institutional frameworks can also strengthen confidence and increase the willingness of investors and companies to engage. Furthermore, developing a robust positive list can enhance the system’s integrity by ensuring that activities align with national climate goals and deliver genuine, additional emission reductions. SSWA countries also need to ensure that Article 6 projects generate co-benefits beyond carbon reductions, such as improved energy security, employment, and better livelihoods for local communities. 

SSWA countries can benefit significantly from regional and international partnerships. Many development partners and institutions are eager to support Article 6 readiness through financing, capacity-building and the establishment of knowledge hubs in the region. While cooperation is essential, SSWA countries would also benefit from ensuring fairness in the transfer of emissions reductions. For example, India’s Memorandum of Understanding with Japan under the Joint Crediting Mechanism      of Article 6.2 ensures that both parties mutually decide the share of credits. Other countries would similarly benefit from retaining a fair share of credits toward their own national climate targets when engaging in Article 6. Lastly, SSWA countries often face common challenges in implementing carbon market mechanisms. Fostering regional cooperation through sharing experiences and peer learning can accelerate progress, and by working together, these countries can strengthen readiness, raise ambition, and attract greater investment in sustainable, low-carbon development pathways. 

ESCAP plays a pivotal role in supporting SSWA countries to engage effectively in Article 6 mechanisms. Through its regional dialogues and knowledge-sharing platforms, it can ensure that carbon market participation contributes not only to emissions reductions but also to economic and social sustainability.