CAT Article 6 evaluations

Under Article 6 of the Paris Agreement, countries can cooperate with each other to achieve their climate targets: they can buy emission reductions in the form of carbon credits from other countries, and count these towards their own emission reduction target.

Carbon credits transferred from one country to another under Article 6 are called Internationally Transferred Mitigation Outcomes (ITMOs), with one ITMO equalling one tonne of CO₂e.

Article 6 creates the framework that allows governments to support emission‑reducing activities abroad and apply those reductions to their own targets, or Nationally Determined Contributions (NDCs), through internationally coordinated accounting. Article 6.1 of the Paris Agreement provides the basis for countries to cooperate to allow for higher ambition in mitigation and adaptation actions. In practice, this is not always the case.

When transferring ITMOs between two countries, both governments must apply Corresponding Adjustments (CA) to their NDC emissions accounting. The buyer country can subtract the purchased amount of ITMOs from its reported national inventory, and the host country (seller) must add the same amount to its reported national inventory. Once a mitigation activity is authorized by the host country, it can be converted into ITMOs and transferred between countries. The corresponding adjustment applies only during one NDC period, so even if the emission reduction is permanent, its effect on accounting is temporary.