Article 6.2 of the Paris Agreement

Article 6 acknowledges that countries can pursue voluntary cooperation in the implementation of their Nationally Determined Contributions to allow for higher mitigation ambition and to promote sustainable development. Article 6.2 outlines the possibility of cooperative approaches and the transfer of Internationally Transferrable Mitigation Outcomes (ITMOs) between different actors, including countries and private sector companies, through bilateral agreements. ITMOs use a carbon dioxide equivalent (CO2e) metric for a new set of market provisions or other greenhouse gas mitigation outcomes that are defined under Article 6.2 of the Paris Agreement.

The mechanisms set out under Article 6.2 on cooperative approaches also underline that beyond emissions reductions, climate mitigation projects can directly or indirectly yield many development benefits – including job creation, technology transfer to increase access to energy, support to livelihoods and food security, gender empowerment and more.

The voluntary carbon market (VCM) is governed by private standards and not by international or national regulatory bodies. However, projects and programs developed under the VCM may support countries in achieving their commitments under the Paris Agreement. To do so, VCM activities will need to comply with the Paris Agreement Article 6 rules.