Canada to develop Article 6 policy to open carbon removals to international markets

  • Canada announced plans for an Article 6 framework supporting international carbon market participation.
  • Canada has approximately 11 mega tonnes of announced removal capacity awaiting construction.
  • EU certification exists, while several Asian countries have expressed interest in cross-border supplies.

Canada is developing a policy framework under Article 6 of the Paris Agreement to allow domestic carbon removal companies to participate in international carbon markets. Article 6 permits countries to cooperate on climate targets through mechanisms including carbon markets and trading verified emissions reduction or removal credits. Industry group Carbon Removal Canada says Canada’s domestic buyer base is too small for the investment required by the sector. Clear accounting and authorization rules could enable Canadian projects to issue credits recognized as international assets. Canada has approximately 11 mega tonnes of carbon removal capacity in announced projects awaiting construction. The country’s emerging industry includes Deep Sky, described as the first North American company to deliver verified removal credits from direct air capture, a technology that removes carbon dioxide from the atmosphere. The EU already has a carbon removal certification framework, while several Asian countries have expressed interest in cross-border supplies. Prime Minister Mark Carney is pursuing closer economic links with the EU and Asia as Canada faces a trade war with the US.

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