Canada moves toward trading carbon credits with other countries
A proposed framework would let Canadian companies sell emissions cuts abroad under the Paris Agreement's Article 6 rules.
Canada's government said Sept. 24 it is developing a framework that would let Canadian companies take part in international carbon markets, a move it said could bring billions of dollars into the economy and speed up domestic climate technology.
The framework would allow Canada to trade internationally transferred mitigation outcomes (ITMOs), emissions reductions or removals that one country can sell to another to count toward its climate target. Rules for that trading under Article 6 of the Paris Agreement were settled at the 29th United Nations Climate Change Conference (COP29) in November 2024.
The government said any trading would follow Article 6 guidance so that reductions sold abroad are real, additional, verified and permanent, and would give investors the certainty needed to unlock the market.
It pointed to research by the nonprofit Carbon Removal Canada suggesting a scaled-up carbon dioxide removal industry could add billions of dollars to gross domestic product and create hundreds of thousands of jobs. Canada's industrial base, geology, clean power and natural resources position it to lead in high-quality carbon removal, the government said.
"A clear framework for international carbon credit transfers can help Canadian companies scale, attract capital, and bring more innovative technologies to market," said Julie Dabrusin, minister of the environment, climate change and nature. Na'im Merchant, executive director of Carbon Removal Canada, said the group had spent the past year arguing that Canada needed the step to compete internationally.
This brief is based on reporting by Mark Segal, published Sept. 25, 2026, by ESG Today. Read the original: https://www.esgtoday.com/canada-looks-to-enter-international-carbon-market/
This article was produced with the assistance of AI tools and reviewed by an editor before publication.
