Canada is developing a policy framework that could enable Canadian companies to participate in international carbon markets through the trading of internationally transferred mitigation outcomes (ITMOs) under Article 6 of the Paris Agreement.

Announced on September 24, 2026, the initiative is intended to create a pathway for Canadian emissions-reduction and carbon-removal projects to access international markets while supporting investment in climate mitigation activities.

Under Article 6, countries can cooperate in meeting their climate targets through mechanisms including the international transfer of verified emissions reductions and removals. Canada’s proposed framework could therefore create opportunities for projects involving carbon removal technologies, nature-based solutions and other mitigation activities to participate in international markets.

The Canadian government said any ITMO trading framework would need to meet Article 6 requirements designed to protect environmental integrity. These include ensuring that emissions reductions or removals are additional, verified and permanent, while preventing the same reduction or removal from being counted toward climate targets by both the exporting and importing countries.

Canada also plans to engage with provinces and territories, Indigenous organizations and other stakeholders as it considers how international carbon-market mechanisms could be operationalized domestically.

The development comes as Canada seeks to expand its carbon-removal sector and attract additional investment into emissions-reduction technologies. Reuters reported that broader international market access could provide Canadian carbon-removal projects with access to a larger pool of potential buyers and investment.

However, the framework is still under development. Canada has not yet established a fully operational system for international ITMO trading, with further policy development and stakeholder engagement required.

The initiative highlights the growing role of Article 6, carbon markets and high-integrity carbon removals in connecting national climate action with international investment and emissions-reduction opportunities.