The Voluntary Carbon Markets Integrity initiative (VCMI) and the Climate Vulnerable Forum and V20 Finance Ministers (CVF-V20) released the 'Article 6 Senior Officials’ Handbook' on 14 October in Bangkok. This policy tool aims to assist 77 climate-vulnerable countries in engaging with international carbon markets under Article 6 of the Paris Agreement. The handbook, comprising eight modules, provides guidance on market authorisation, revenue allocation, safeguards, and private sector engagement. It seeks to help these nations attract an additional $20 billion in annual carbon finance by 2030 to address an estimated $490 billion annual financing gap for development needs.
The International Emissions Trading Association (IETA) has welcomed Canada's announcement to develop a framework for participating in international carbon markets under Article 6 of the Paris Agreement. This initiative will facilitate the trading of Internationally Transferred Mitigation Outcomes (ITMOs). IETA stated that the framework would allow Canada to meet climate goals cost-effectively, attract investment, and diversify trade. The organisation also highlighted Canada's potential as a global supplier of carbon dioxide removal and other high-integrity mitigation outcomes. IETA's 300+ members plan to support the government, provinces, territories, and Indigenous organisations in developing this framework.
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.
The Democratic Republic of Congo (DRC) has expanded its Article 6 Letter of Authorisation for carbon asset manager Econetix by an additional 2 million tCO2e, bringing the total authorised volume to 2.75 million tonnes. This authorisation covers Econetix's Gold Standard clean energy programme (GS12469) with ALTECH Group, including solar lighting, home solar systems, and clean cookstove distribution. The agreement applies corresponding adjustments to credit vintages from 2023 through 2033, using the DRC’s National Registry. This expansion positions the programme to issue verified Gold Standard credits from October 2026, with Econetix's total CORSIA-eligible credits across three African nations now exceeding 14.5 million tCO2e.
Brazil's Ministry of Finance and China's Ministry of Ecology and Environment have begun discussions to establish a sovereign carbon trading framework before COP31. The negotiations focus on transferring Brazilian Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 to Chinese entities. This initiative aims to create a formal cross-border mechanism for climate finance and market interoperability, addressing challenges in integrating cross-border carbon transfers within national mitigation targets. Both nations are establishing rigorous baseline requirements and operational criteria for high-integrity credits, including Brazil's proposed 50 million tonne CO2e cap for international transfers between 2031 and 2035. The framework seeks to provide a scalable model for cross-border carbon accounting and channel international climate finance into Brazilian decarbonisation efforts.
Sylvera's analysis of initial Article 6.2 reporting reveals common issues in timeliness and completeness from host countries. These gaps, while expected in the early stages of the mechanism, pose challenges for verifying corresponding adjustments and ensuring credit integrity. The firm notes that such issues are critical for stakeholders including host countries, airlines under CORSIA, sovereign buyers, investors, and insurers. Effective national reporting is essential for preventing double-counting and maintaining the credibility of authorised carbon credits under the Paris Agreement.
Gold Standard and Verra jointly launched a new tool on 20 August 2026, designed to assist host countries in reporting corresponding adjustments for carbon credits authorised under Article 6.2 of the Paris Agreement. The tool provides a single, comprehensive record of corresponding adjustments for all authorised credits issued by either standards body. It automatically populates the required summary table for submission alongside countries' 2026 Biennial Transparency Reports. This initiative aims to increase efficiency, reduce reporting errors, and promote consistent reporting of these units across market contexts. The collaboration seeks to simplify the practical complexities of Article 6.2 reporting for host countries.
Vietnam's government approved an Implementation Agreement with Singapore via Resolution 235/NQ-CP, establishing a legal framework for carbon credit cooperation under Article 6 of the Paris Agreement. This allows Vietnamese entities to develop greenhouse gas emission reduction projects that can generate credits for transfer to Singapore. The Ministry of Foreign Affairs will finalise procedures for the September 2025 agreement to enter into force. While the pact creates a binding bilateral framework for cross-border transactions, specific projects and methodologies are yet to be announced.
Carbon asset manager Econetix received a Letter of Authorisation from the Ugandan government for up to 10 million tCO2e for its clean cookstove projects, valid for vintages 2025-2030. This marks the largest single Article 6 authorisation granted to a private company in Uganda. The agreement expands Econetix’s total authorised CORSIA-eligible portfolio to 12.5 million tonnes across three African nations, including previous approvals in DRC and Rwanda. The company plans to pursue similar authorisations in Tanzania, Malawi, and other African countries. This authorisation aims to address the projected deficit in CORSIA-eligible emissions units for international aviation.
The UN Article 6.4 Supervisory Body approved a new methodology on 30 July, enabling grid-connected renewable power projects to generate UN-backed carbon credits. This marks the first time such projects can issue credits under the Paris Agreement Crediting Mechanism, expanding its scope beyond landfill gas methane and nitric acid N2O. The methodology establishes qualification criteria, measurement protocols, and verification checks for emission reductions. This decision aims to support renewable energy deployment in countries facing financing barriers, aligning with global goals to triple renewable capacity by 2030. The Supervisory Body also updated registry procedures but deferred a decision on household cooking energy efficiency.
The Global Green Growth Institute (GGGI) is procuring a consulting firm to develop a tool for host countries to calculate their 'ITMO transfer headroom'. This tool will help governments estimate the volume of carbon credits they can sell internationally without jeopardising their national climate commitments (NDCs). The assignment is part of GGGI's SHARE project, under its Carbon Transaction Facility, which offers technical assistance and carbon funds. Proposals for the methodological framework and dynamic Excel-based tool are due by 16:00 KST on 7 August 2026. The initiative aims to support informed decision-making for countries participating in Article 6.
At the Bonn climate conference, proponents of Article 6 carbon markets advocated for a 'learning by doing' approach as the mechanisms move into their implementation phase. This strategy, highlighted by Carbon Market Watch, precedes COP31 and suggests an iterative development of the market rules. While funding arrangements for Article 6 were the only official negotiation item, the broader push indicates a readiness to advance market operations despite unresolved foundational issues. Critics argue this approach risks negative climate and societal impacts. The conference signals a move towards operationalising UN carbon markets ahead of full regulatory clarity.
The UN's Article 6.4 Supervisory Body approved the first carbon credits under the Paris Agreement Crediting Mechanism in February 2026, stemming from a clean-cooking project in Myanmar. A report by several NGOs, including Global Forest Coalition, criticises the approval, stating the project operates in conflict-affected regions and partners with the military junta's Ministry of Natural Resources and Environmental Conservation (MONREC), which is under EU sanctions. The report alleges that companies like Korea Electric Power Corporation are purchasing credits from a regime accused of human rights abuses. The South Korean NGO Climate Change Center, which runs the project, stated it continues to operate in accordance with international standards and procedures, having initiated the programme in 2018 before the 2021 military takeover.
The International Emissions Trading Association (IETA) published recommendations on 28 May 2026 to enhance India's Article 6 framework, aiming for a credible, robust, and investment-friendly market. The paper suggests accelerating bilateral cooperation, establishing clear authorisation, and expanding eligible Article 6 activities to include nature-based solutions and removals. IETA highlights India's potential to become a leading Article 6 supply market, attracting climate finance and supporting its Nationally Determined Contribution. The recommendations also focus on aligning the framework with NDC accounting and strengthening institutional coordination and legal certainty.
Perumal Arumugam from the UNFCCC discussed the operationalisation of Article 6.4 and its role in scaling climate finance and international carbon trading. The discussion covered the transition from the Kyoto Protocol to the Paris Agreement, comparing Article 6.2 and 6.4, and the expected supply and demand for carbon credits. Arumugam also addressed host country bottlenecks, the project pipeline, new methodologies, and registry infrastructure, including interoperability. The conversation provided an outlook for Article 6 implementation towards 2030.