Reviewed by Viveck J. Suman on
Quick answer: Article 6 of the Paris Agreement lets countries cooperate on cutting emissions and count the results. When a credit from one country is used towards another country’s target, the country that hosts the project must make a corresponding adjustment. It adds those tonnes back to its own emissions accounts so the same reduction is not counted twice.
What Article 6 covers
- Article 6.2: countries trade results directly with each other. These are called internationally transferred mitigation outcomes (ITMOs).
- Article 6.4: a central crediting mechanism run under a UN Supervisory Body.
- Article 6.8: cooperation that does not involve trading, such as technology support.
What is a corresponding adjustment?
An illustration: a project in country A avoids 1,000 tonnes of CO2e. Country B buys the result to use towards its own target. Country A adds 1,000 tonnes back to its reported emissions and country B subtracts 1,000 tonnes from its own. The ledgers balance and the tonne is counted once.
| Credit with no corresponding adjustment | Credit with a corresponding adjustment | |
|---|---|---|
| Host country’s accounts | Still counts the reduction towards its own target | Adds the tonnes back |
| Main risk | Two parties may claim the same tonne | Depends on the host country actually authorising and reporting it |
| Typical use | Voluntary claims by companies | Transfers between countries under Article 6 |
What this means for Indian ESG and finance teams
India’s domestic Carbon Credit Trading Scheme was notified in June 2023 under the Energy Conservation Act, with the Bureau of Energy Efficiency as administrator. Credits used for compliance there are a separate matter from credits bought on the voluntary market. Check BEE’s current notifications for what is open to trading today.
Five checks before you buy or report a credit
- Is the credit authorised by the host country, and for what use?
- Has a corresponding adjustment been applied or promised, and where is that written down?
- Can you find the credit’s serial number in a public registry, and is it retired in your name?
- Does the methodology carry an Integrity Council (ICVCM) Core Carbon Principles label?
- Does your public wording match what you bought? A credit without a corresponding adjustment should not be described as a country’s reduction.
Frequently asked questions
Does every carbon credit need a corresponding adjustment? No. Many voluntary credits have none. It matters when the credit is used towards a country’s target or an international scheme.
Who applies the adjustment? The host country, through its reporting under the Paris Agreement.
Is Article 6 the same as the voluntary carbon market? No. Article 6 is a government framework. The voluntary market is run by private standards and registries.
Want to work with carbon credits professionally? See our Carbon Credit Management Program.
Sources: UNFCCC, Article 6; Bureau of Energy Efficiency; ICVCM, Core Carbon Principles. Last checked 6 November 2026.
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