Canada carbon markets, carbon removal and international carbon credits are moving closer to the center of Ottawa’s strategy to develop new clean-economy industries and expand Canada’s role in international climate markets. The federal government said Thursday it is exploring a policy framework that could allow Canadian companies to participate in international carbon markets by trading internationally transferred mitigation outcomes, or ITMOs, under Article 6 of the Paris Agreement.
The move could give Canadian carbon removal developers and other climate-focused companies access to a broader pool of international buyers and capital. Ottawa said the framework could support investment in emissions reductions, carbon removal technologies and nature-based solutions, while creating opportunities to export Canadian technology and expertise.
Environment Minister Julie Dabrusin said the proposed framework could channel investment into emissions-reduction and carbon-removal projects in Canada, as well as nature-based solutions.
“The trading of ITMOs (International Transferred Mitigation Outcome) under the Paris Agreement can unlock greater global climate action by making it easier to transfer emission reductions and removals between countries. This is about turning our natural advantages and homegrown climate innovation into investment, good jobs, and new export opportunities. A clear framework for international carbon credit transfers can help Canadian companies scale, attract capital, and bring more innovative technologies to market, strengthening our position as a leader in the global clean economy,” she stated.
The announcement also comes as Canada looks to build on its industrial capabilities, clean electricity resources and geological capacity for carbon storage. The federal government said those advantages could help establish a globally competitive carbon removal industry, while international market access could give Canadian companies another route to commercialize projects and attract investment.
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