Article 6: ITMOs and Corresponding Adjustments in Depth
Article 6 lets countries cooperate on emissions reductions. Its rules on transfers and double counting determine what a unit can be used for.
The three parts of Article 6
Article 6.2 covers bilateral or multilateral cooperation, under which countries can transfer Internationally Transferred Mitigation Outcomes (ITMOs). Article 6.4 establishes a UN-supervised mechanism that issues credits for emissions reductions, and succeeds the Clean Development Mechanism. Article 6.8 covers non-market approaches. Most market activity today is under 6.2 and 6.4.
Corresponding adjustments
When a country transfers an ITMO, it makes a corresponding adjustment: the reduction is taken out of the host country's emissions accounting, so the same tonne is not counted by both countries. The acquiring country can then count it toward its own climate commitment. Without an adjustment, the unit cannot be used for that purpose.
Authorisation and reporting
Host countries authorise the transfer, and the transfer must be reported through the Paris Agreement's transparency framework. These records are what make an ITMO different from a voluntary credit that happens to come from the same project.
Why buyers should care
A unit with a corresponding adjustment is not automatically better, but it serves a different purpose. Before buying, check whether the unit is an ITMO, a 6.4 credit, or a voluntary credit, and whether the host country has authorised the transfer. The price, documentation and eligibility can all differ.