Article 6.2

Countries swapping carbon credits

Article 6 of the Paris Agreement was agreed to increase mitigation ambition, and to help countries achieve the targets set in their Nationally Determined Contribution (NDC), through international cooperation.

But actual negotiations under Article 6 have focused almost entirely on the creation of carbon markets and carbon crediting programs.

At COP26 in Glasgow in 2021, countries agreed on a broad framework of rules to govern and implement international carbon market mechanisms based on Article 6.

This included agreement on Article 6.2, which allows countries to trade emission reductions and removals with one another through bilateral or multilateral agreements.

Weak rules and minimal guidance governing Article 6.2 actions were finally approved at COP 29 in Baku in 2024.

Brazil, hosting the next big Conference of Parties (COP30), has never been a proponent of carbon markets. In fact, Brazilian federal prosecutors recently tried to annul a deal for carbon credits in Para state – which hosts COP30.

During the mid-year climate conference in Bonn, countries with credits to sell pushed hard for full operationalization of the Article 6 mechanisms.

CLARA works consistently to advance international cooperation under Paris Agreement Article 6.8 on non-market approaches.

More about Article 6.8 and alternatives to carbon markets