ITMOs, or Internationally Transferred Mitigation Outcomes, are units similar to carbon credits that signify the reduction or removal of one ton of greenhouse gases (GHG) from the atmosphere, requiring verification by an external entity.
This concept originated from Article 6.2 of the Paris Agreement, which establishes a framework for countries to transfer their GHG mitigation efforts to one another, helping them fulfil their emission reduction commitments defined in their Nationally Determined Contributions (NDCs).
In simple terms, a country that does not meet its emission reduction targets, as outlined in its NDC, can purchase ITMOs from another country that has surpassed its own targets.
This mechanism enables the selling country, which has achieved reductions beyond its domestic goals, to benefit financially from selling these ITMOs, while the purchasing countries can fulfil their emission reduction commitments.
