International Carbon Frameworks
Related Ideas
The Government of Canada announced it is exploring a policy framework to trade internationally transferred mitigation outcomes (ITMOs) under Article 6 of the Paris Agreement. This could allow Canadian companies to participate in international carbon markets and catalyze investment in carbon removal technologies and nature-based solutions. The framework aims to leverage Canada's industrial expertise, geology, and clean power resources to build a globally competitive carbon removal industry.
According to Carbon Removal Canada, a scaled-up carbon dioxide removal industry could contribute billions to Canada's GDP and create hundreds of thousands of jobs by 2050. Any credit traded as an ITMO must meet Article 6 requirements, including ensuring reductions are additional and avoiding double counting between exporting and importing countries.
Canada's exploration of ITMO trading signals that national carbon policy is increasingly designed to attract capital and scale homegrown climate technology for export.
