The correct answer is Option 3 In News • Article 6 of the Paris Agreement became fully operational at COP29. India entered global carbon markets by signing the Joint Crediting Mechanism (JCM) with Japan, strengthening climate finance and technology transfer pathways. Explanation & Key Takeaways: • Article 6 outlines voluntary cooperation among countries to achieve climate goals through market and non-market approaches, forming the backbone of international carbon cooperation. Hence, Statement I is correct. • Article 6.2 allows the transfer of Internationally Transferred Mitigation Outcomes (ITMOs) between countries under strict accounting rules, requiring transparency and corresponding adjustments to avoid double counting. Hence, Statement II is correct. Related Concepts: • Article 6.2 – Cooperative approaches & ITMO trading. • Article 6.4 – UN-supervised crediting mechanism (successor to CDM). • Article 6.8 – Non-market approaches such as technology transfer and capacity building. • India has identified 13 priority areas under Article 6, including green hydrogen, offshore wind, sustainable aviation fuel (SAF), and advanced energy storage. • JCM with Japan supports high-end technology transfer, robust accounting, and financing for low-carbon solutions.