Federal Government Developing Framework for Greater International Cooperation on Carbon Markets

OTTAWA, ON, Sept. 24, 2026 /CNW/ -- With world-class industrial expertise, geology, clean power, abundant natural resources, and a strong policy foundation, Canada has an opportunity to build a globally competitive carbon removal industry and become a leading producer of high-quality carbon removal technologies--not just because it is essential for the world's climate, but because it will be critical to the competitiveness of Canadian firms in a decarbonizing world.

Today, the Honourable Julie Dabrusin, Minister of the Environment, Climate Change and Nature, announced that the Government of Canada is exploring a policy framework to trade internationally transferred mitigation outcomes (ITMOs), which could allow Canadian companies to participate in international carbon markets catalyzing further investment in climate mitigation activities, including deployment of carbon removal technologies and nature‑based solutions.

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Outlined under Article 6 of the Paris Agreement, countries may choose to cooperate in meeting their national climate targets through measures such as international carbon markets and the trading of ITMOs. ITMOs could mobilize investment in projects that generate high-integrity emissions reductions and removals, here in Canada and abroad, and create opportunities for deployment of Canadian technology and expertise.

According to a report by Carbon Removal Canada, by 2050 a scaled-up carbon dioxide removal industry in Canada could contribute billions to Canada's gross domestic product and create hundreds of thousands of jobs. The development of an ITMO framework complements the Spring Economic Update of over $13 billion in international climate finance, making Canada one of the first countries to announce climate finance pledges beyond 2026.

Canada will continue to pursue new and promising policies that have strong potential and align with a net-zero future, including the potential for international and domestic offset credits.

Quotes

"The trading of ITMOs 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."– The Honourable Julie Dabrusin, Minister of the Environment, Climate Change and Nature

Quick facts

• Any carbon credit used as an ITMO must meet the requirements of Article 6 of the Paris Agreement. This includes ensuring that emissions reductions or removals are in addition to what would have occurred in the absence of the arrangement and avoiding the "double counting" of the same emissions reduction or removal by both the exporting and importing country.

• Requirements for countries to trade ITMOs under Article 6 include the establishment of institutional arrangements to ensure robust processes are in place for the tracking and accounting of greenhouse gas reductions and removals.

• Canada will ensure any ITMO trading activities are aligned with Article 6 rules and guidance to ensure environmental integrity and rigorous accounting. This will help ensure the emissions reductions and removals traded between countries are real, additional, verified, and permanent. It will also provide investors with the certainty needed to unlock the full potential of carbon markets.

• The Government of Canada will engage with provinces and territories, Indigenous organizations, and other partners in exploring a possible approach for operationalizing ITMOs in the Canadian context.

Associated links

Canada's Greenhouse Gas Offset Credit System

Environment and Climate Change Canada's X page

Environment and Climate Change Canada's Facebook page

Environment and Natural Resources in Canada's Facebook page

Environment and Climate Change Canada's LinkedIn page

Environment and Climate Change Canada's Instagram page

SOURCE Environment and Climate Change Canada