Article 6.2 of the Paris Agreement allows countries to cooperate voluntarily to achieve their climate targets through the transfer of emission-reduction outcomes.
In simple terms, if one country reduces emissions beyond what it needs for its own climate target, it may transfer those reductions to another country. The receiving country can use them towards its own Nationally Determined Contribution (NDC), provided proper accounting rules are followed.
This is one of the main provisions under Article 6, which deals with carbon markets and international climate cooperation.
Basic Meaning
Article 6.2 creates a framework for cooperative approaches between countries.
These cooperative approaches may be bilateral, regional or plurilateral. They are not centrally run like a UN project-by-project mechanism. Instead, participating countries agree among themselves on how cooperation will happen.
The emission-reduction units transferred under Article 6.2 are called Internationally Transferred Mitigation Outcomes (ITMOs). The UNFCCC explains that Article 6.2 enables a host country to sell units to a buyer country in exchange for investment, capacity-building support and access to technologies, while the buyer uses these units to help meet its climate goals.
How It Works
Suppose Country A supports a renewable energy or methane-reduction project in Country B.
If that project generates verified emission reductions, Country B may authorise those reductions for transfer to Country A.
Country A can then count those reductions towards its NDC.
But to avoid double counting, Country B must make a corresponding adjustment. This means Country B cannot also count the same emission reduction towards its own climate target.
The basic chain is:
- Country B hosts the mitigation activity.
- Emission reductions are measured and verified.
- Country B authorises transfer of the mitigation outcome.
- Country A receives ITMOs.
- Country A counts them towards its NDC.
- Country B makes a corresponding adjustment so the same reduction is not counted twice.
Corresponding Adjustment
Corresponding adjustment is the most important accounting rule under Article 6.2.
It prevents double counting.
Without this rule, both the seller country and buyer country could claim the same emission reduction. That would make global climate accounting unreliable.
For example, if India transfers a carbon credit to another country, India must adjust its emissions balance so that the same reduction is not also counted towards India’s own NDC.
This rule protects the environmental integrity of carbon markets.
Article 6.2 vs Article 6.4
Article 6.2 and Article 6.4 are related, but not the same.
Article 6.2 deals with country-to-country cooperative approaches and ITMO transfers. It is more decentralised and depends on bilateral or plurilateral arrangements.
Article 6.4 creates a UN-supervised carbon crediting mechanism, often called the Paris Agreement Crediting Mechanism. It is closer to a centralised system and is meant to replace or succeed the Clean Development Mechanism under the Kyoto Protocol. The UNFCCC describes Article 6.4 as the UN’s new high-integrity carbon crediting mechanism under the Paris Agreement.
Significance
Article 6.2 is important because it can reduce the cost of climate action.
Some countries can reduce emissions at lower cost than others. Through Article 6.2, countries with finance and technology can support mitigation projects in other countries and use the resulting ITMOs towards their own targets.
Its significance lies in:
- mobilising climate finance
- supporting technology transfer
- lowering cost of mitigation
- helping countries meet NDCs
- encouraging international carbon markets
- creating incentives for emission-reduction projects
- supporting sustainable development in host countries
For developing countries, Article 6.2 can attract investment in renewable energy, green hydrogen, energy efficiency, waste management, methane reduction, clean cooking and industrial decarbonisation.
India’s Relevance
For India, Article 6.2 is relevant because India has large potential to generate emission reductions in sectors such as renewable energy, green hydrogen, energy efficiency, transport, agriculture, waste and industrial processes.
However, India has to be careful. If India transfers too many low-cost emission reductions abroad, it may become harder or more expensive to meet its own future climate targets.
So, India must decide which mitigation outcomes can be exported and which should be retained for its own NDC.
India’s key concerns include:
- protecting domestic NDC achievement
- avoiding export of cheap mitigation options
- ensuring fair carbon prices
- attracting real technology and finance
- avoiding double counting
- ensuring sustainable development benefits
- maintaining sovereignty over carbon-market decisions
Article 6.2 can be useful for India only if it supports additional climate action rather than simply allowing rich countries to buy cheap credits.
Concerns
The biggest concern is environmental integrity.
Carbon markets can become weak if credits are generated from projects that would have happened anyway, if emission reductions are exaggerated, or if the same reduction is counted by both countries.
Other concerns include:
- weak accounting rules
- double counting
- low-quality carbon credits
- human rights and land conflicts
- lack of transparency
- unfair pricing for developing countries
- overdependence on offsets by rich countries
- risk of delaying domestic emission cuts
COP29 made progress on Article 6 rules, but experts have still noted concerns around consistency checks, transparency and whether countries will avoid using ITMOs flagged as inconsistent with NDC achievement.
Current Status
Article 6.2 is now operational, but implementation is still developing.
Countries need authorisation systems, tracking arrangements, reporting formats and national registries before they can participate effectively.
A 2025 implementation status update noted that only a limited number of parties had formally submitted Article 6.2 initial reports to the UNFCCC, though readiness was gradually increasing.
This shows that the legal framework exists, but many countries are still building the institutional systems needed for credible carbon-market participation.
Conclusion
Article 6.2 of the Paris Agreement enables voluntary cooperation between countries through the transfer of Internationally Transferred Mitigation Outcomes.
Its core purpose is to help countries meet their climate targets more efficiently while promoting sustainable development.
Its success depends on strong accounting, corresponding adjustments, transparency, fair pricing and high-quality emission reductions. Without these safeguards, Article 6.2 could weaken climate ambition instead of strengthening it.
