The Canadian government has announced plans to establish a national policy framework under Article 6 of the Paris Agreement, enabling domestic carbon removal developers to trade verified credits in international carbon markets.
The initiative aims to establish standardized accounting and authorization rules, allowing Canadian project developers to export internationally transferred mitigation outcomes (ITMOs) to foreign governments and corporate buyers seeking to fulfill net-zero commitments.
Article 6 of the Paris Agreement provides a formal structure for cross-border carbon trading, allowing host nations to authorize carbon credits for transfer while making corresponding adjustments to avoid double counting toward national climate targets.
Industry advocacy group Carbon Removal Canada welcomed the announcement, noting that domestic corporate demand remains insufficient to finance the sector’s capital requirements. The organization estimates that Canada currently holds approximately 11 megatons of planned carbon removal capacity across announced projects awaiting construction financing.
The policy shift is expected to strengthen economic and trade linkages with the European Union—which has established a formal Carbon Removal Certification Framework—and several Asian nations seeking cross-border removal agreements. It also aligns with broader economic strategy under Prime Minister Mark Carney to expand international trade partnerships across Europe and Asia amid ongoing trade tensions with the United States.
Canada has emerged as a key regional hub for technological carbon dioxide removal (CDR), housing developers such as Deep Sky, which delivered North America’s first verified credits generated via direct air capture (DAC) technology. Industry leaders anticipate that international market access will de-risk project financing and accelerate commercial deployment across the country’s project pipeline.
