Article 6.4 of the Paris Agreement sets up a mechanism for countries and companies to generate emission reductions and removals under a central authority. It is a crediting mechanism supervised under the United Nations.

How is Article 6.4 different from Article 6.2?

Article 6.2 is built on direct cooperation between countries, while Article 6.4 works through one central mechanism with common rules and methodologies. Projects under Article 6.4 follow those rules rather than a bilateral agreement.

What do projects need to meet Article 6.4 requirements?

A project needs an approved methodology, host-country approval, clear baselines, and independent validation and verification. It also has to show that the activity is additional.

Can existing carbon projects move to Article 6.4?

Some existing projects may be able to transition, depending on the rules that apply to their type and standard. We check your project against the current Article 6.4 requirements.

How do you help with an Article 6.4 project?

We assess your activity against Article 6.4 rules and methodologies and identify gaps before you apply. That way you enter the Paris Agreement mechanism with a project that fits.

Article 6.2 projects, from host-country screening to authorized outcomes

See how we assess host-country frameworks and project eligibility, so your mitigation outcomes are ready for authorization and international transfer.

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Why Article 6.2 changes the value of carbon credits

What it is

Article 6.2 lets countries cooperate to transfer Internationally Transferred Mitigation Outcomes (ITMOs) toward their national targets. Corresponding adjustments prevent double counting.

Why it matters

It connects national climate targets with international carbon-market finance, across renewable energy, energy efficiency, waste, land use, removals, and other eligible activities.

Market opportunity

Buyers get access to internationally authorized outcomes aligned with national climate frameworks, in emerging sovereign carbon markets.

Business value

Host-country authorization can raise the strategic and commercial value of a project's mitigation outcomes.

From eligible activity to transferred outcome, in six stages

Follow the six stages we run with you, and see what each one asks of your team.

Eligibility screening

We identify a mitigation activity that meets the host country's requirements, so you start with a project that can qualify.

Methodology and documentation

We assess the activity against applicable methodologies, national criteria, additionality, and MRV requirements, then prepare the documents.

Host-country authorization

We prepare you for the host-country authority's review, which can authorize specified outcomes for international transfer.

Implementation and monitoring

We run the project under the approved monitoring framework and quantify reductions through MRV.

Independent verification

We coordinate verification of the eligible outcomes your project generated.

Transfer and corresponding adjustments

We support the issuance and tracking steps, so authorized outcomes transfer with the reporting that avoids double counting.

Two routes to international carbon markets

Article 6.2

(market)

Direct trading of ITMOs between countries and/or entities, generally through bilateral or multilateral agreements, with a high degree of flexibility to define the cooperative approach.

Article 6.4

Paris Agreement Crediting Mechanism (PACM)(market)

UNFCCC-centralized market mechanism, where units are generated under standardized and pre-approved rules and methodologies.

Mechanism type

Type of cooperation

Governance / administration

Host country role

Units / outcomes

Use cases

Article 6.2 Decentralized mechanism

Bilateral or plurilateral

Party-driven with UNFCCC guidance on requirements and reporting

Requires authorization by the host country regarding use of ITMOs

Internationally Transferred Mitigation Outcomes (ITMOs)

NDC achievement and other international mitigation purposes (OIMP), e.g. CORSIA

Article 6.4 Centralized mechanism

Project-based, open to public and private actors

Supervised by Article 6.4 Supervisory Body

Requires approval by the host country before registration and issuance of A6.4ERs.
The host country can decide whether to authorize A6.4ERs or not.

A6.4ERs (Article 6.4 Emission Reductions)
If authorized: A6.4 Authorized Emission Reductions (A6.4 AER), which become ITMOs.
If not authorized: Mitigation Contribution Units (MCUs).

If authorized: NDC achievement, OIMP.
If not authorized: Results-based climate finance, domestic mitigation pricing schemes, or domestic price-based measures.

Article 6.2 questions, answered plainly

Find the basics on how authorization and transfer work. For anything about your own project, talk to us.

View Indian Carbon Market Article 6 Guidelines

What is Article 6.2?

Article 6.2 of the Paris Agreement lets countries cooperate directly and transfer mitigation outcomes between them. Those outcomes are called internationally transferred mitigation outcomes (ITMOs).

What is an ITMO?

An ITMO is a mitigation outcome that is authorized by the host country and can count toward another country's climate target. It is the unit that moves in Article 6.2 cooperation.

What is a corresponding adjustment?

A corresponding adjustment is an accounting step where the host country adds the transferred outcome back to its own emissions record. It prevents the same reduction from counting toward two countries' targets.

What does authorization mean for a project?

Authorization is the host country's formal approval for a mitigation outcome to be used for transfer. Without it, the outcome cannot be treated as an ITMO.

How do you help with an Article 6.2 project?

We assess the host-country framework and your project's eligibility, then help you prepare for authorization and transfer. Our focus is making your project ready before the rules and buyers ask for proof.