IETA welcomes Canada's initiative to develop Article 6 participation framework

The International Emissions Trading Association (IETA) applauds the Government of Canada's announcement last week that it is developing a framework for Canadian participation in international carbon markets through the trading of Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement.

This is an important moment for Canada. The announcement follows IETA's new vision paper, Canada's Carbon Market Opportunity: A Vision for Climate Competitiveness & Growth, which identifies Article 6 as a major untapped opportunity for Canada to meet its climate goals cost-effectively while attracting investment and diversifying trade.

The government's recognition of carbon dioxide removal (CDR) as an emerging export industry is a strong start. Canada's clean electricity, industrial expertise and geological storage capacity position it to become a global supplier of durable removals.

But the opportunity is broader still. Canada has world-class potential across industrial decarbonisation, methane abatement, clean energy and nature-based solutions. A framework that welcomes all high-integrity mitigation outcomes would bring international capital to projects in every region of the country.

Acting as a buyer and seller through well-designed bilateral partnerships would give Canada a cost-effective complement to domestic action. It would also deepen commercial ties with trading partners already active in Article 6, including Singapore, Japan, Switzerland and EU member states. Acting as both buyer and seller would put Canada at the centre of a fast-growing global market.

Canada is ready for this leadership role. With the federal carbon pricing benchmark update underway, new work on linking domestic carbon markets, and Canada's active role in the Open Coalition on Compliance Carbon Markets and the Coalition to Grow Carbon Markets, the pieces are in place. A connected domestic market and an ambitious international framework can reinforce each other and deliver lower-cost emissions reductions, new investment and new export markets.

IETA’s 300+ global members look forward to supporting the government, provinces and territories, and Indigenous organisations through the framework development process.