Canada unveils framework for international carbon market participation

The Government of Canada has unveiled plans for a new framework designed to allow Canadian businesses to participate in international carbon markets. This initiative focuses on the trading of Internationally Transferred Mitigation Outcomes (ITMOs), a mechanism established under Article 6 of the Paris Agreement following the COP29 climate conference.

The framework aims to ensure environmental integrity through rigorous accounting and transparency to prevent double-counting or greenwashing. By aligning with international rules, the government intends to provide investors with the certainty required to scale carbon removal technologies, such as direct air capture and bioenergy with carbon capture.

Research from the non-profit Carbon Removal Canada suggests that a scaled-up carbon dioxide removal industry could contribute billions of dollars to Canada’s GDP and create hundreds of thousands of jobs. Na’im Merchant, Executive Director of Carbon Removal Canada, noted that the move positions the country to compete more effectively in the growing international sector.