Paris Agreement Article 6.2
Article 6.2 of the Paris Agreement establishes the framework for internationally transferred mitigation outcomes (ITMOs) — a mechanism that allows countries to cooperate in achieving their Nationally Determined Contributions (NDCs) by trading verified emission reductions across borders, while ensuring that the same tonne is never counted twice.
The double-counting problem
Without a corresponding adjustment mechanism, a single emission reduction could be claimed by both the country where the project is located (as part of its NDC) and the country that purchased the carbon credit (as an offset against its own emissions). Article 6.2 solves this by requiring the host country to apply a corresponding adjustment — reducing its own NDC accounting by the amount transferred — so that each tonne is only ever counted once globally.
What ITMOs are
An Internationally Transferred Mitigation Outcome (ITMO) is a unit representing one tonne of CO₂ equivalent reduced or removed, transferred from one country to another under a bilateral or multilateral agreement. ITMOs must be authorised by the host country, tracked in national registries, and accompanied by corresponding adjustments in both countries' accounting.
Why this matters for carbon markets
Before Article 6.2 rules were finalised (at COP26 in Glasgow and COP27 in Sharm el-Sheikh), voluntary carbon markets operated largely without corresponding adjustments, meaning the same credit could plausibly be counted in multiple national inventories simultaneously. Article 6.2 closes that gap for credits used across borders, fundamentally changing the quality and credibility standards for the voluntary carbon market.
How GHGify connects to Article 6.2
GHGify's companion product — the Blockchain Voluntary Carbon Market Registry — is designed from the ground up to enforce Article 6.2 corresponding adjustments. Every carbon unit issued on the registry carries a cryptographic record of its host country, vintage, authorisation status, and corresponding adjustment, making double-counting structurally impossible rather than just prohibited. Integration between GHGify's reporting platform and the registry means a company's purchased offsets are automatically reflected in its GHG inventory with the correct Article 6.2 accounting.
Current status
As of 2025, Article 6.2 bilateral agreements are being concluded between countries, with Singapore leading several, including agreements with Papua New Guinea, Ghana, Viet Nam, and others under its International Carbon Credit (ICC) framework. Companies in Singapore purchasing ICCs can already use GHGify to properly account for them under both the GHG Protocol and IFRS S2.