Article 6 of the Paris Agreement lets countries cooperate voluntarily to meet their Nationally Determined Contributions (NDCs) through international carbon markets and non-market approaches..It establishes the rules for international climate cooperation, enabling countries to work together on mitigation activities while supporting the achievement of their climate targets.
The framework has three parts. Article 6.2 covers cooperative approaches involving the generation and transfer of the emission reductions as Internationally Transferred Mitigation Outcomes (ITMOs) between countries. Article 6.4 establishes a UN-supervised crediting mechanism, succeeding the Kyoto Protocol’s Clean Development Mechanism (CDM). Article 6.8 covers non-market approaches to international climate cooperation.
What Is Article 6 of the Paris Agreement
Article 6 sits within the Paris Agreement (adopted at COP21 in December 2015) and operationalises the principle that greenhouse gas reductions have the same climate benefit,regardless of where they occur. It provides countries with a framework to transfer, trade, or jointly implement mitigation outcomes while supporting the achievement of their Nationally Determined Contributions (NDCs).
According to the UNFCCC, Article 6 was designed to lower the cost of climate action, raise ambition, and channel finance to developing countries where mitigation opportunities are often more cost-effective . The detailed rulebook was finalised at COP26 in Glasgow in 2021, and the framework has been progressively operationalised through COP29 in Baku.
Article 6 is implemented through three complementary sub-articles, each serving a distinct purpose within the Paris Agreement’s cooperation framework: .
|
Sub-Article |
What It Does | Key Term |
| Article 6.2 | Country-to-country trade of emission reductions | ITMOs |
| Article 6.4 | Centralised UN-supervised crediting mechanism | PACM |
| Article 6.8 | Non-market cooperation on technology and capacity | GCNMA |
Article 6.2 Cooperative Approaches and ITMOs
Article 6.2 allows two or more countries to cooperate bilaterally or multilaterally by transferring mitigation outcomes that can be counted towards their Nationally Determined Contributions (NDCs). These transferred mitigation outcomes are called Internationally Transferred Mitigation Outcomes (ITMOs), and are measured in metric tonnes of carbon dioxide equivalent (tCO2e). .
Corresponding adjustments prevent double counting
Corresponding adjustments are the accounting that preserves the environmental integrity of Article 6.2, by preventing double counting. When one country transfers an authorized ITMO to another, the transferring country makes a corresponding adjustment so that the mitigation outcome is no longer counted towards its own NDC, while the acquiring country may count it towards its climate target, subject to the agreed terms of the transfer.. This ensures the same mitigation outcome is not counted twice; once by the country where it was achieved and again by the country that acquired it.
How Article 6.2 operates in practice
The first Article 6.2 bilateral was signed between Switzerland and Peru in October 2020, followed by similar agreements with Ghana, Senegal, Georgia, Vanuatu, and Thailand. Japan’s Joint Crediting Mechanism (JCM), which predates the Paris Agreement, has also been aligned with Article 6.2.
Before a mitigation outcome can be transferred internationally as an ITMO, it must be authorised by the host country through a Letter of Authorization specifying details such as vintage, quantity, and intended use.
Depending on the cooperation agreement and the host country’s priorities, mitigation outcomes may either be authorised for international transfer or retained towards the host country’s own NDC. Private-sector project developers can participate in these cooperative approaches after obtaining the necessary host-country authorisation.
Article 6.4 Paris Agreement Crediting Mechanism
Article 6.4 establishes a centralised, UN-supervised carbon crediting mechanism, formally known as the Paris Agreement Crediting Mechanism (PACM). It allows public and private entities to generate tradable carbon credits from emission-reduction and removal activities, succeeding the Kyoto Protocol’s Clean Development Mechanism (CDM) with more stringent integrity standards.
Succession from the CDM
The Clean Development Mechanism (CDM) established under the Kyoto Protocol allowed developed countries to earn Certified Emission Reduction credits (CERs) by funding projects in developing countries. Article 6.4 builds on the same core idea while introducing stronger requirements for environmental integrity, including additionality, robust quantification, and long-term monitoring where applicable . Legacy CDM projects can transition to Article 6.4 subject to the eligibility conditions established by the Article 6.4 Supervisory Body.
OMGE and Share of Proceeds
OMGE (Overall Mitigation in Global Emissions) is what makes Article 6.4 more than a pure market-based mechanism. As per rules approved at COP26, 2% of issued Article 6.4 Emission Reductions (A6.4ERs) are automatically cancelled at issuance and cannot be traded,. This ensures the system delivers a net global mitigation benefit rather than simply transferring credits between accounts. In addition, a Share of Proceeds, set at 5%of issued Article 6.4 Emission Reductions (A6.4ERs), is directed to the Adaptation Fund, to support developing countries adapting to climate change.
Article 6.8 Non-Market Approaches
Article 6.8 recognises non-market approaches, enabling countries to cooperate on climate action without trading carbon credits. It covers technology transfer, capacity building, joint mitigation and adaptation programmes, and other forms of financial and technical support delivered through international partnerships rather than market transactions.
The work programme is coordinated through the Glasgow Committee on Non-Market Approaches (GCNMA), established at COP26. According to the UNFCCC, the committee oversees a platform where countries can identify non-market cooperation needs and connect with potential partners offering financial, technical, or capacity-building support . It also develops the operational arrangements for how Article 6.8 activities are recorded and reviewed.
Not every climate action is suited to a credit-generating project. Initiatives like coastal ecosystem protection, indigenous knowledge integration, or grid-modernisation partnerships are often better supported through international cooperation, grants or technical assistance than through tradable credits. Article 6.8 gives these activities formal recognition within the Paris Agreement’s broader framework for international cooperation.
Conclusion
Article 6 of the Paris Agreement turns the physical fact that a tonne of CO2 reduced anywhere benefits the global climate into a practical framework for international cooperation . Through Article 6.2’s ITMO transfers, Article 6.4’s UN-supervised crediting mechanism, and Article 6.8’s non-market cooperation, it provides three routes for global cooperation towards climate commitments. If implemented effectively, Article 6 has the potential to accelerate global decarbonisation while helping countries raise ambition and achieve their Nationally Determined Contributions (NDCs).
FAQs
What is the difference between Article 6.2 and Article 6.4?
Article 6.2 enables countries to cooperate by transferring Internationally Transferred Mitigation Outcomes (ITMOs) under bilateral or multilateral agreements . Article 6.4 is a centralised UN-supervised crediting mechanism where public and private entities generate tradable credits under standardised methodologies.
What are ITMOs in the Paris Agreement?
Internationally Transferred Mitigation Outcomes (ITMOs) are Article 6.2 mitigation outcomes. Each ITMO represents one tonne of CO2 equivalent reduced or removed,nd can be transferred between countries following host Party authorisation and the application of corresponding adjustments, where required..
What are corresponding adjustments?
Corresponding adjustments prevent double counting under Article 6. When a country transfers a mitigation outcome, it adjusts its emissions accounting so the same emission reduction cannot be counted by both the transferring and acquiring countries. .
Is Article 6.4 the same as the Clean Development Mechanism?
No. Article 6.4 succeeds the Clean Development Mechanism CDM under the Paris Agreement, but introduces stronger environmental integrity requirements, including additionality, MRV, and mandatory provisions such as OMGE and Share of Proceeds provisions.
When was Article 6.4 operationalised?
Article 6.4 was formally operationalised at COP29 in Baku in November 2024, when parties adopted standards for methodologies and carbon removals. Work on implementing and expanding the mechanism, including registry and operational arrangements, continues .
What is OMGE in Article 6.4?
OMGE (Overall Mitigation in Global Emissions) requires 2%of issued Article 6.4 Emission Reductions (A6.4ERs) per issuance to be automatically cancelled, ensuring a net global reduction rather than pure transfers.
How does Article 6 help developing countries?
Article 6 supports developing countries by : attracting climate finance, promoting technology transfer, supporting capacity building, and creating opportunities to generate revenue from emission reduction and removal activities .
