Article 6.2 of the Paris Agreement: Public Consultation Opened on the Operationalization of ITMOs

On July 7, 2026, a public consultation was opened on a draft resolution that will establish the conditions, procedures and limits to operationalize Brazil’s participation in cooperative approaches involving Internationally Transferred Mitigation Outcomes (ITMOs), under Article 6.2 of the Paris Agreement.

The proposal implements Article 51 of Federal Law No. 15,042/2024, which established the Brazilian Emissions Trading System (SBCE) and granted the Interministerial Committee on Climate Change (CIM) authority to establish the conditions for authorizing ITMOs, based on the multilateral climate change regime and Brazil’s international climate commitments.

In summary, the draft resolution establishes that Brazil’s engagement in the cooperative approaches provided for under Article 6.2 of the Paris Agreement will aim to reduce net greenhouse gas emissions in Brazil by 100 million tons of CO₂e between 2031 and 2035. Within this total, up to 50 million tons of CO₂e may be authorized for international transfer in the form of ITMOs.

The draft also provides that the National Designated Authority (NDA) will be responsible for issuing ITMO Authorization Letters, which will allow the international transfer of mitigation outcomes generated in Brazil and trigger the corresponding adjustments. The NDA, together with the SBCE managing body and in coordination with the Mitigation Subcommittee, will also be responsible for proposing the positive list of activities eligible for ITMO authorization.

In general terms, the proposal links the process for authorizing and transferring ITMOs to the governance of the SBCE. This is because, under the draft resolution, mitigation outcomes to be transferred internationally must first be registered as Verified Emission Reduction or Removal Certificates (CRVEs) in the SBCE Central Registry. In practice, carbon credits to be converted into CRVEs will need to comply with accredited methodologies and procedures to be regulated under the SBCE. In addition, the effective transfer of ITMOs will depend on a request by the interested party to the operator of the SBCE Central Registry, provided that the relevant Authorization Letter has been obtained.

The allocation of ITMOs for international transfer and use may occur through two modalities: (i) Future Transfer Agreements (FTAs); and (ii) Public Calls for the selection of projects and programs. FTAs will be entered into between the NDA and a representative designated by the country participating in the cooperative approach or by an authorized entity. Public Calls, in turn, will aim to select projects and programs eligible for the international transfer of ITMOs, and will be carried out by the NDA in accordance with a future CIM resolution. The CIM will also be responsible for issuing a biennial resolution to define the maximum quantities of ITMOs to be allocated under each modality.

The public consultation will remain open for contributions until August 6, 2026.

Finally, it is worth noting that, during COP30, Brazil entered into Memoranda of Understanding with some countries, to advance partnerships for climate action, including the implementation of cooperative approaches under Article 6 of the Paris Agreement.

The Environmental, Climate Change and Sustainability practice of Tauil & Chequer Advogados in association with Mayer Brown remains available to provide further clarification on opportunities involving carbon markets and the mechanisms under Article 6 of the Paris Agreement.