Article 6

What Are ITMOs? Authorisation, Transfer and Use Explained

How internationally transferred mitigation outcomes move from a host-country activity to authorisation, first transfer, corresponding adjustment and final use.

What Are ITMOs? Authorisation, Transfer and Use Explained

An internationally transferred mitigation outcome, or ITMO, is a mitigation outcome that is authorised and transferred between countries under Article 6.2 of the Paris Agreement. It can represent an emissions reduction or removal, but it becomes an ITMO through government authorisation, reporting and accounting, not simply because a project uses an international standard.

From mitigation activity to ITMO

A project first needs a quantification framework that defines the baseline, project boundary, monitoring parameters and calculation of net outcomes. The activity then passes through the host country's approval process. That process tests eligibility, sustainable development, NDC alignment and the national interest in exporting the outcome.

The host government may authorise the outcome for a specific use, such as another country's NDC, an international mitigation purpose or another approved application. The exact wording matters because a buyer cannot assume that one authorisation covers every claim or compliance use.

First transfer and corresponding adjustment

The first transfer triggers the accounting consequences under Article 6. The host country applies a corresponding adjustment so the same mitigation outcome is not also counted toward its own NDC. The acquiring country or authorised user records the outcome on the other side of the transfer.

This is the core difference between an ITMO and an ordinary voluntary carbon credit. Both may be based on a credible methodology and independent verification, but the ITMO carries an additional sovereign accounting layer.

Why authorisation is the commercial bottleneck

Project documentation can advance before final government approval, but deliverable ITMO supply depends on a clear route through authorisation. Buyers should verify:

  • The authority empowered to approve the project.
  • The authorised use and vintage period.
  • The quantity or share approved for transfer.
  • The registry or tracking infrastructure.
  • The treatment of reversals, over-issuance and changes in national policy.
  • The contractual allocation of authorisation risk.

A letter of support, project listing or cooperation agreement may be positive evidence, but none automatically replaces a formal authorisation for transfer. The same distinction applies to renewable-power eligibility under A6.4-AMM-003, where an issued unit is not automatically authorised for a particular international use.

Where ITMOs fit in procurement

ITMOs can serve sovereign acquisition programmes, compliance systems and other authorised international purposes. They may also appeal to corporate buyers seeking strong host-country accounting, although the intended claim must be checked against both the authorisation and the buyer's reporting framework.

Sentinel Earth develops Article 6.2 programmes with government engagement, project design, MRV and transfer readiness handled as one process. Our Föhn project in Morocco shows how high-GWP refrigerant destruction can be structured for authorised bilateral cooperation.

Linden Felder

About the author

Linden Felder

Leads market communications, research publishing and brand strategy.

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