Article 6 & International Market Mechanisms

What is Article 6 of the Paris Agreement?

Article 6 allows countries to collaborate via carbon markets or non-market approaches to achieve their climate goals more cost-effectively.

Sentinel Earth helps clients navigate Article 6 implementation — especially bilateral deals (6.2) and preparing for the centralized UN mechanism (6.4).

What is the Article 6.4 mechanism?

Article 6.4 is a centralized UN mechanism that will register and issue carbon credits under the Paris Agreement — replacing the old CDM with more rigorous safeguards.

Sentinel Earth is preparing projects for eligibility under 6.4 and tracks developments with the UN Supervisory Body to help early participants access new carbon flows.

What is the Clean Development Mechanism (CDM)?

The CDM was a legacy carbon market under the Kyoto Protocol that allowed developed countries to finance mitigation in developing countries and earn credits.

Sentinel Earth draws lessons from the CDM era and helps legacy projects upgrade or transition into Article 6.4 and high-integrity voluntary frameworks.

What are ITMOs?

Internationally Transferred Mitigation Outcomes (ITMOs) are units of emissions reductions traded between countries under Article 6.2 of the Paris Agreement.

Sentinel Earth structures and facilitates ITMO transactions between nations and private actors — ensuring credits meet technical, legal, and climate integrity standards.

What is a corresponding adjustment?

A corresponding adjustment ensures a carbon credit isn’t double-counted. If a credit is transferred internationally (e.g. under Article 6), the host country deducts it from its own climate ledger.

Sentinel Earth helps secure host country authorizations and corresponding adjustments where needed — especially for Article 6-compliant or government-authorized credits.

What is a host country letter of authorization (LoA)?

An LoA is a formal statement from a country authorizing a project and, if applicable, the transfer of credits internationally under Article 6.

Sentinel Earth helps secure LoAs where needed and ensures that all international crediting aligns with host country climate priorities and rules.