Canada explores policy framework for international carbon market participation and ITMO trading
Canada's federal government is developing a policy framework to enable Canadian companies to participate in international carbon markets by trading Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement. This initiative aims to provide Canadian carbon removal developers and climate-focused companies with access to a broader pool of international buyers and capital. Environment Minister Julie Dabrusin stated that the framework could channel investment into Canadian emissions reduction and carbon removal projects, as well as nature-based solutions. The government intends for the system to comply with Article 6 requirements, including rules to prevent double counting of emissions reductions. This move seeks to leverage Canada's industrial capabilities and geological storage potential to establish a globally competitive carbon removal industry and export Canadian climate technology.
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