We show you how to set up your carbon mitigation activity and connect you to credit buyers and carbon finance partners to make your business scalable and sustainable.
We will design and implement your activity well, ensuring compliance with frameworks, and obtain validation and authorization.
Carbon revenue will allow your business to use the leverage effect for new sources of carbon financing.
Internationally Transferred Mitigation Outcomes (ITMOs) are part of a mechanism created under the Paris Agreement (Article 6) that allows countries to trade verified emission reductions with each other, enabling buyer countries to meet their national emission reduction commitments (NDCs) and host countries to obtain economic benefits for achieving emission reductions beyond their national targets. ITMOs are high-quality, high-integrity, UNFCCC-regulated carbon credits representing a ton of greenhouse gas (CO2eq) reduced. They are a market-based form of cooperation between countries to achieve global climate goals.
On the voluntary carbon market (VCM), carbon credits are mostly unregulated and issued by private companies based on their individual standards. They are usually traded to private or public companies wishing to offset the carbon footprint generated by their activities. In the regulated market (compliance market), the carbon credits are government-issued by a National Registry. They can be used to totally or partially offset the obligations that some companies have under national legal obligations and mechanisms such as emissions trading systems (ETS) and carbon taxes in different countries.
Only countries that are Parties to the Paris Agreement can issue ITMOs under the UNFCCC regulation, if they have established a national registry and carbon framework. Strict measures for transparency and authorization requirements apply. No double-counting will happen since for every purchase of ITMOs by another country corresponding adjustments are applied.
As a project proponent, you must determine whether there is an applicable methodology for developing a mitigation project or program. The host country must have certain arrangements in place and will eventually approve the transfer of credits out of a validated activity to the buyer country by way of a Letter of Authorization.
