# ITMOs Explained: Internationally Transferred Mitigation Outcomes

> What ITMOs are under Article 6.2 of the Paris Agreement, how they are authorised and transferred, the role of corresponding adjustments, and why the GCC is an active player.

**Source:** https://www.esgweise.com/insights/itmos-explained-article-6-2/
**Author:** Sumit Agarwal
**Published:** 2026-06-04
**Frameworks:** Article 6, Paris Agreement
**Countries:** UAE, KSA, Qatar, Global

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## Key points

- ITMOs are the units traded between countries under Article 6.2 of the Paris Agreement.
- They are host-country-authorised mitigation outcomes transferred toward another party's NDC.
- A corresponding adjustment must be applied so the tonne is counted only once.
- The UAE and other GCC states are actively pursuing Article 6.2 bilateral agreements.

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## Introduction

When the Paris Agreement lets one country's emission reduction count toward another country's target, the thing that actually changes hands is an **ITMO** — an Internationally Transferred Mitigation Outcome. It is the workhorse unit of **Article 6.2**, and it is central to how the GCC is engaging with global carbon markets. This guide explains ITMOs in detail. It builds on our overview of [Article 6](/insights/article-6-paris-agreement-carbon-markets/).

## What an ITMO is

An **ITMO** is the unit traded between countries under **Article 6.2**. It represents a **host-country-authorised mitigation outcome** — typically tonnes of CO₂e — transferred toward another party's climate target (**NDC**). Where a voluntary carbon credit is a private-standard unit for company claims, an ITMO is a **government-authorised unit** for national-target accounting.

## ITMO vs voluntary credit

| | **Voluntary credit** | **ITMO** |
|---|---|---|
| **Issued by** | Independent standard (Verra, etc.) | Host-country authorisation |
| **Counted toward** | Company voluntary claims | National target (NDC) |
| **Double-count control** | Registry retirement | Corresponding adjustment |
| **Space** | Voluntary market | International cooperation (Article 6.2) |

Importantly, the two can meet: a host country can **authorise** a credit from a voluntary standard, turning it into an ITMO.

## How ITMOs are authorised and transferred

The mechanics, finalised at **COP29**:

1. Two countries agree a **cooperative approach** under Article 6.2.
2. The host country **authorises** a mitigation outcome for transfer.
3. On the **'first transfer'**, the host applies a **corresponding adjustment**.
4. The transaction is **reported transparently** under UN rules.

An ITMO without a corresponding adjustment is double-counted — claimed by both host and buyer. Under <strong>Article 6.2</strong> (rules finalised at COP29, Baku, November 2024), the host country must add the transferred tonne back to its own inventory at the point of first transfer, so only the buyer counts it. The first fully completed ITMO transfer, between <strong>Switzerland and Thailand</strong> in early 2024, established the template. Always confirm a corresponding adjustment is authorised before relying on an ITMO.

A voluntary credit is retired on a registry. An ITMO is authorised by a government and balanced by a corresponding adjustment. Same idea — no double-counting — enforced by very different machinery.

## Why the GCC is an active player

GCC states are engaging with Article 6.2 as **both hosts and buyers**. The **UAE's National Register for Carbon Credits (Cabinet Resolution 67 of 2024)** explicitly requires credits to align with **Article 6**, and the UAE is pursuing **bilateral agreements** to cooperate on mitigation outcomes. For the region, ITMOs are part of the pathway toward net-zero targets — and a potential export, given the Gulf's project pipeline. See [carbon credits in the GCC](/insights/carbon-credits-in-the-gcc/).

## How ESGweise helps

ESGweise helps GCC organisations understand where ITMOs fit — eligibility, host-country authorisation, corresponding-adjustment requirements, and how Article 6.2 cooperation interacts with voluntary credits and national registers. See our [carbon](/services/carbon/) and [strategy](/services/strategy/) practices.

## References & sources

- [UNFCCC — Article 6.2 cooperative approaches](https://unfccc.int/process-and-meetings/the-paris-agreement/cooperative-implementation)
- [UAE Cabinet Resolution No. 67 of 2024 — National Register for Carbon Credits](https://uaelegislation.gov.ae/en/legislations/2521)
- [UNFCCC — COP29 Article 6 outcomes](https://unfccc.int/cop29)

## Conclusion

ITMOs are the unit that makes Article 6.2 work: host-country-authorised mitigation outcomes, transferred toward a buyer's national target, and balanced by a corresponding adjustment so no tonne is counted twice. They sit alongside — and sometimes overlap with — voluntary credits, and the GCC, led by the UAE's Article 6-aligned National Register, is an active player as both host and buyer. For anyone engaging with international carbon markets, understanding ITMOs is understanding how climate cooperation actually settles accounts.

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## Frequently asked questions

### What is an ITMO?

An ITMO — Internationally Transferred Mitigation Outcome — is the unit traded between countries under Article 6.2 of the Paris Agreement. It represents a mitigation outcome (typically measured in tonnes of CO₂e) that a host country has authorised for transfer to another country or entity, to be counted toward the buyer's climate target (NDC). ITMOs are the vehicle for bilateral, government-to-government carbon cooperation under the Paris Agreement.

### How is an ITMO different from a voluntary carbon credit?

A voluntary carbon credit is issued by an independent standard (like Verra or Gold Standard) and used mostly by companies making voluntary claims. An ITMO is a government-authorised unit transferred under Article 6.2, counted toward a national target (NDC), and subject to a corresponding adjustment by the host country. ITMOs sit in the international compliance-cooperation space, though authorised credits from voluntary standards can, in some arrangements, become ITMOs when a host country authorises them.

### How are ITMOs authorised and transferred?

The host country authorises a mitigation outcome for international transfer under a cooperative approach agreed with the buying country, within the Article 6.2 rules finalised at COP29. On the 'first transfer', the host country must apply a corresponding adjustment — adding the transferred tonne back to its own inventory — so it is not double-counted. The transaction is reported transparently under UN rules, giving the buyer confidence the outcome is genuinely additional to the host's own accounting.

### Is the UAE using ITMOs?

Yes. The UAE is an active participant in Article 6.2, pursuing bilateral agreements to cooperate on mitigation outcomes, and its National Register for Carbon Credits (Cabinet Resolution 67 of 2024) explicitly requires alignment with Article 6 of the Paris Agreement. Several GCC states are positioning themselves as both hosts and buyers of ITMOs, using Article 6.2 cooperation as part of their pathways toward net-zero targets.


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Published by ESGweise Global LLC, Dubai. https://www.esgweise.com