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The author contends that Canada's attempt to claim emission credits for low-carbon exports is incompatible with the territorial GHG accounting system used by the UNFCCC. While Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement allow for credit transfers, the author argues these are unlikely to apply to commercial transactions like LNG sales, as importing countries are unlikely to voluntarily surrender credits for products they already pay for at market price. Furthermore, the document asserts that changing global accounting rules to include export effects would be resisted by other nations and could potentially penalize Canada due to its high-emission exports, such as oil sands products.

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  • The current global GHG accounting system, adopted by 197 parties to the UNFCCC, is based on 'territorial' inventories, meaning it only counts emissions generated within a country's geographic borders.
  • Under territorial accounting, if Canadian LNG replaces coal in another country, the resulting emission reduction is credited to the importing country's inventory, not Canada's.
  • Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement are unlikely to provide credits for Canadian exports because they are voluntary agreements; importing countries would not likely trade credits for standard commercial transactions where the product is already paid for at market price.
  • Attempting to change international accounting rules to include export credits is deemed unrealistic due to expected resistance from other UNFCCC countries and the risk that Canada would have to subtract credits for its high-emission exports, such as those from oil sands.

Cite the original document

APA
Canadian Climate Institute (2022). Canada, crédits et exportations sobres en carbone. https://institutclimatique.ca/canada-credits-exportations-sobres-en-carbone/
Chicago
Canadian Climate Institute. Canada, crédits et exportations sobres en carbone. 2022. https://institutclimatique.ca/canada-credits-exportations-sobres-en-carbone/.
Wikipedia
{{cite report |author=Canadian Climate Institute |title=Canada, crédits et exportations sobres en carbone |date=2 December 2022 |url=https://institutclimatique.ca/canada-credits-exportations-sobres-en-carbone/ |access-date=23 October 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{canadianclimateinstitute2022canada, author = {{Canadian Climate Institute}}, title = {{Canada, crédits et exportations sobres en carbone}}, institution = {Canadian Climate Institute}, year = {2022}, month = dec, url = {https://institutclimatique.ca/canada-credits-exportations-sobres-en-carbone/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }

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