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.
Rules governing Article 6.2 were finalized at COP29 in Baku in 2024, but they provide minimal guidance and don’t guarantee integrity.
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 interests in carbon markets 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
How Effective are Article 6 Carbon Market Rules?
With agreement on Article 6.2 complete, countries began announcing bilateral deals for carbon credits. Most of these deals involve land and forests; some are based on the use of cookstoves.
But the bilateral deals announced under 6.2 have not inspired confidence. CLARA member Carbon Market Watch questions the transparency, credit quality, and sustainable development benefits of the 6.2 deals. CMW’s conclusion: “The Article 6.2 rulebook sets out a weak framework, scoring poorly across most of the evaluation criteria.“
But no serious effort was made at the June 2025 climate talks to deal with the problems in Article 6.2. Read Carbon Market Watch’s Air of 0ptimism at Bonn climate conference obscures troubling carbon market flaws. CLARA’s companion media briefing from that June 2025 climate conference is here.
CLARA is also compiling a listing of country-to-country carbon credit deals that are moving forward using Article 6.2 guidance. Deals are being announced all the time, although details are short. You can access that database here.