Current Status of Article 6 of the Paris Agreement: Internationally Transferred Mitigation Outcomes (ITMOs)

The document examines the transition from Kyoto-era carbon credits to ITMOs under Article 6 of the Paris Agreement, detailing the two primary cooperation avenues (Article 6.2 and 6.4) and the remaining challenges in establishing a rulebook. It categorizes potential project types, analyzes Canada's preparations—including waste sector partnerships in Chile and LNG exports—and highlights the economic potential of Article 6 to reduce NDC implementation costs by half by 2030 if properly regulated to avoid double counting and 'hot air'.

• Article 6 establishes two primary pathways for international cooperation using ITMOs: a decentralized cooperative approach for trading under Article 6.2, and a UN-governed mechanism under Article 6.4.
• ITMOs differ from previous schemes like the Clean Development Mechanism (CDM) because they count toward a country's Nationally Determined Contributions (NDCs) and require more government involvement, though they still rely on the concept of 'additionality'.
• As of December 2019, a formal rulebook for Article 6 had not been finalized, with unresolved disputes regarding the Adaptation Fund, the inclusion of REDD+ activities, the transition of Kyoto Protocol credits, and methods to prevent double counting.
• Potential Article 6 projects are categorized into four types: new initiatives specifically for Article 6, pre-existing CDM/JI initiatives, carbon pricing readiness initiatives, and international regimes outside the UNFCCC such as CORSIA.
• Canada is preparing for Article 6 through various initiatives, including a CAD 7 million program (2017–2021) to help Chile reduce methane emissions in the waste sector, and exploring the export of liquefied natural gas (LNG) to replace coal in Asia.
• Canadian provincial efforts include Saskatchewan's interest in transferring carbon capture and storage (CCS) technology and Alberta's consideration of forestry and agricultural offsets for ITMO trading.
• Modelling suggests Article 6 could reduce the annual cost of implementing NDCs by USD 250 billion (50%) by 2030 and potentially remove 50% more emissions if savings are reinvested.
• Critical risks for ITMOs include the potential for developing countries to oversell credits and compromise their own NDCs, the transfer of 'hot air' from countries with targets above business-as-usual, and the risk that developed nations use ITMOs to avoid domestic climate action.

APA

Roth, J., Echeverría, D., & Gass, P. (2019). Current Status of Article 6 of the Paris Agreement: Internationally Transferred Mitigation Outcomes (ITMOs). International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/status-article-6-paris-agreement.pdf

Chicago

Roth, Joachim, Daniella Echeverría, and Philip Gass. Current Status of Article 6 of the Paris Agreement: Internationally Transferred Mitigation Outcomes (ITMOs). International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/publications/status-article-6-paris-agreement.pdf.

Wikipedia

{{cite report |last1=Roth |first1=Joachim |last2=Echeverría |first2=Daniella |last3=Gass |first3=Philip |title=Current Status of Article 6 of the Paris Agreement: Internationally Transferred Mitigation Outcomes (ITMOs) |publisher=International Institute for Sustainable Development |date=December 2019 |url=https://www.iisd.org/system/files/publications/status-article-6-paris-agreement.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{roth2019current, author = {Roth, Joachim and Echeverría, Daniella and Gass, Philip}, title = {{Current Status of Article 6 of the Paris Agreement: Internationally Transferred Mitigation Outcomes (ITMOs)}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = dec, url = {https://www.iisd.org/system/files/publications/status-article-6-paris-agreement.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }