Canada has announced plans to create a national policy for the participation of domestic companies in international carbon credit markets. The government intends to develop a framework in accordance with Article 6 of the Paris Agreement.
Article 6 allows countries to cooperate in achieving climate goals through the trade of verified credits for emission reductions or removals. The announcement was made on 24 September in Calgary.
Environment Minister Julie Dabrusin emphasized that such a mechanism will help attract investment in carbon removal projects and nature-based solutions. It will also open up opportunities for exporting Canadian technologies.
The industry in the country is growing actively. Among the examples is the company Deep Sky, which became the first in North America to supply verified credits from direct air capture technology.
According to Carbon Removal Canada estimates, domestic demand for such credits is still small compared to the industry's investment needs. The framework under Article 6 should establish clear rules for accounting and authorization so that Canadian projects can sell credits abroad.
Projects with a total capacity of about 11 megatons of carbon removal have already been announced in the country and are awaiting construction. Additional demand from abroad will help launch them.
The European Union has already introduced its own carbon removal certification system, and several Asian countries are showing interest in cross-border supplies. Prime Minister Mark Carney seeks to strengthen economic ties with these regions amid trade tensions with the United States.
How will the new mechanism affect the pace of development of Canada's carbon removal industry?
Industry representatives note that clear international rules will give investors confidence and help scale up projects. This is a step toward integrating Canadian technologies into global climate efforts.
