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Article 6.2

Summary

Article 6.2 of the Paris Agreement provides a framework for countries to bilaterally trade greenhouse gas emission reductions, known as ITMOs. This mechanism allows nations to achieve their climate targets (NDCs) more cost-effectively by financing mitigation projects in other countries and promoting global cooperation.

  

Article 6.2 of the Paris Agreement establishes the "cooperative approaches" that allow countries to voluntarily work together to meet their climate goals. It provides the accounting rules for international transfers of carbon credits, officially termed 'Internationally Transferred Mitigation Outcomes' (ITMOs), between two or more nations. This framework is pivotal for global climate action as it offers flexibility; a country can meet its own Nationally Determined Contribution (NDC) by funding emission reduction projects in another country where it might be more efficient or impactful.

This mechanism is designed to channel climate finance towards effective decarbonization projects, accelerating the global transition to a low-carbon economy. For it to work, environmental integrity is paramount.

The core mechanics of Article 6.2 rely on several key principles:

  • Bilateral Agreements: Unlike a centralized market, transfers under 6.2 are based on direct agreements between participating countries. The host country generates the emission reduction, and the buyer country acquires it.
  • Internationally Transferred Mitigation Outcomes (ITMOs): These are the units of trade. An ITMO represents one tonne of carbon dioxide equivalent (tCO2e) that has been verifiably reduced or removed from the atmosphere.
  • Corresponding Adjustments: To prevent "double counting" — where both the buyer and seller country claim the same emission reduction — Article 6.2 mandates a corresponding adjustment. The country selling the ITMO must add the equivalent amount back to its own emissions balance sheet, while the buyer country can deduct it. This ensures the reduction is only counted once towards the Paris Agreement’s goals.
  • Sustainable Development: Projects generating ITMOs are encouraged to contribute to the sustainable development goals of the host country, ensuring that climate action also brings social and economic benefits.

Concrete Use Cases

  • Renewable Energy Financing: A country like Switzerland could sign a bilateral agreement with Senegal to finance a large-scale solar power plant. Senegal would benefit from the clean energy infrastructure and investment. In return, Senegal would transfer a portion of the resulting ITMOs to Switzerland, which would use them to help meet its own emission reduction targets under its NDC.
  • Forest Conservation: Japan could partner with Costa Rica to fund a reforestation or avoided-deforestation project. The carbon sequestered by the new or protected forests would be quantified into ITMOs. Costa Rica would receive crucial funding for conservation, and Japan would acquire the ITMOs to count towards its climate commitments.

These cooperative approaches are foundational to creating a global price on carbon and ensuring capital flows to where it can have the greatest climate impact. For more context, it is helpful to understand the broader international climate policy framework learn more about the Paris Agreement and its mechanisms. You can also review the official guidelines on the UNFCCC's platform Read the official text and decisions on the UNFCCC website.

Frequently Asked Questions

What is Article 6.2 of the Paris Agreement?
Article 6.2 establishes the "cooperative approaches" that allow countries to voluntarily work together to meet their climate goals. It provides the accounting rules for international transfers of carbon credits, officially termed 'Internationally Transferred Mitigation Outcomes' (ITMOs), between two or more nations, offering flexibility for countries to meet their Nationally Determined Contributions (NDCs) by funding emission reduction projects in other countries.
What are the key principles of Article 6.2?
The core mechanics rely on several key principles:
  • Bilateral Agreements: Transfers are based on direct agreements between participating countries, where the host country generates the emission reduction and the buyer country acquires it.
  • Internationally Transferred Mitigation Outcomes (ITMOs): Units of trade representing one tonne of carbon dioxide equivalent (tCO2e) verifiably reduced or removed.
  • Corresponding Adjustments: To prevent double counting, the selling country adds the equivalent emissions back to its balance sheet, while the buyer deducts it.
  • Sustainable Development: Projects generating ITMOs are encouraged to contribute to the host country’s sustainable development goals.
Can you provide examples of Article 6.2 use cases?
Concrete use cases include:
  • Renewable Energy Financing: Switzerland could finance a solar power plant in Senegal, receiving ITMOs to meet its emission targets while Senegal benefits from clean energy infrastructure.
  • Forest Conservation: Japan could fund reforestation in Costa Rica, acquiring ITMOs from the carbon sequestered, supporting conservation and climate commitments.
Where can I learn more about the Paris Agreement and Article 6.2?
Other Terms (Compliance Schemes & Operations)