Canada is developing an Article 6 framework to enable the international transfer of carbon credits through Internationally Transferred Mitigation Outcomes (ITMOs). 

• The framework could attract investment into carbon removal, nature-based solutions, and other climate mitigation projects. 

• Canada plans to prioritize robust accounting, transparency, and environmental integrity in future international carbon credit transfers. 

• The initiative could create new opportunities for Canadian businesses to participate in emerging international carbon markets. 

Environment, Climate Change and Nature Minister Julie Dabrusin announced that the federal government is exploring how Canada could participate in international transfers of emissions reductions and removals. The initiative aims to create new opportunities for businesses while directing additional investment toward climate action. 

Under Article 6 of the Paris Agreement, countries can cooperate to achieve their climate targets by transferring verified emissions reductions or removals across borders. A dedicated Canadian framework could provide businesses with a clearer pathway to participate in these international transactions. 

New Opportunities for Canadian Businesses 

The proposed framework could connect Canadian climate projects with international buyers seeking high-quality carbon credits. It may also create opportunities for companies developing carbon removal technologies, carbon management solutions, and related technical services. 

Canada’s significant potential for geological carbon storage, clean electricity generation, and established industrial capabilities could support the development of an international carbon market ecosystem. 

The initiative follows Canada’s Spring Economic Update, which committed more than $13 billion to international climate finance. Longer-term climate finance commitments beyond 2026 are also intended to strengthen Canada’s role in global climate action. 

Integrity at the Center of Article 6 Trading 

The credibility of any international carbon market will depend heavily on environmental integrity and robust carbon accounting. 

ITMOs transferred under Article 6 must comply with internationally agreed requirements. Emissions reductions or removals should represent genuine mitigation, while accounting systems must prevent double counting—where the same reduction is claimed toward climate targets by both the country generating the credit and the country using it. 

Canada has indicated that any future ITMO trading framework would follow Article 6 rules and guidance, with an emphasis on reductions and removals that are real, additional, measurable, verified, and durable. 

Clear requirements covering authorization, ownership, tracking, and accounting could also provide greater certainty for investors financing long-term climate projects. 

Canada Considers the Next Steps 

The Canadian government plans to consult provinces and territories, Indigenous organizations, businesses, and other stakeholders as it develops the framework. It is also examining policies that could support the transition to a net-zero economy, including the potential role of international and domestic carbon credits. 

If implemented, the framework could give Canadian climate projects access to a broader international market while helping mobilize private capital for emissions reduction and carbon removal. 

Canada’s move reflects the growing global effort to operationalize Article 6 and ITMO markets. Ultimately, the success of these markets will depend on strong accounting, transparency, traceability, and environmental safeguards that ensure carbon credits represent credible climate action. 

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