Article 6 of the Paris Agreement and Indonesia

Updated 2026-11-02 · 4 min read · By the akar.earth specialist team

Article 6 and Indonesia explained: ITMOs, corresponding adjustments, 6.2 vs 6.4, authorisation letters and what they mean for forest carbon project developers.

Article 6 of the Paris Agreement lets countries trade emission reductions to meet their national climate targets, either through bilateral deals (Article 6.2) or a UN-supervised mechanism (Article 6.4). For Indonesia, it decides which forest carbon credits can leave the country for use against another nation’s target, and on what terms.

This hub explains the moving parts, why corresponding adjustments matter, and what developers and buyers should check before signing a deal.

Why Article 6 exists

Under the Paris Agreement, every country sets a nationally determined contribution (NDC). If Indonesia reduces emissions from its forests and sells those reductions to another country, both could claim the same tonnes unless the transfer is accounted for. Article 6 creates the rules for that accounting.

Two ideas sit at the centre:

• ITMOs (internationally transferred mitigation outcomes). Emission reductions or removals that one country transfers to another under Article 6.2.
• Corresponding adjustments. When the host country authorises a transfer, it adds the tonnes back to its own emissions balance so they count only once.

See the glossary entries for ITMO and corresponding adjustment.

Article 6.2 vs Article 6.4

Article 6.2 vs Article 6.4 covers the differences in depth. Article 6.2 ITMOs and bilateral deals and the Article 6.4 mechanism explain each track.

A mental model: who is counting the tonne?

For any credit, ask three questions:

1. Which target is it counted against? Indonesia’s NDC, a buyer country’s NDC, an airline’s CORSIA obligation, or a company’s voluntary claim.
2. Has Indonesia authorised it? Authorisation is the government’s formal decision that the tonne can be used for an international purpose.
3. Has a corresponding adjustment been applied? If yes, Indonesia gives up the tonne in its own accounts.

If the answers do not line up, the credit risks double counting or a claim the buyer cannot make. Letters of authorisation and what they change explains the paperwork.

Indonesia’s position

Forestry and land use sit at the centre of Indonesia’s climate strategy. The FOLU Net Sink 2030 goal aims to make the forestry and land-use sector a net carbon sink. That gives the government reason to be careful about letting forest reductions leave the national account, because each authorised tonne makes the domestic target harder to meet.

The domestic framework now runs through Perpres 110/2025, which replaced the earlier NEK framework under Perpres 98/2021. Units traded on the exchange must be recorded in SRUK, which replaces SRN-PPI. Authorisation and corresponding adjustment decisions sit within this framework. Corresponding adjustments for Indonesian credits explains how the process works in practice. For context, see Indonesia’s NDC and the land sector and FOLU Net Sink 2030.

Indonesia also has bilateral experience. The Joint Crediting Mechanism between Indonesia and Japan is one of the longest-running bilateral crediting arrangements, and it informs how 6.2 deals are structured.

Voluntary vs compliance use

Not every credit needs a corresponding adjustment. A company that buys a credit to make a voluntary contribution claim, without counting it towards another country’s NDC, may not need one. Credits sold for compliance uses, such as CORSIA, or as ITMOs to governments, do. Prices and buyer pools differ accordingly. Compliance vs voluntary carbon markets explains the split, and the CORSIA eligible units page covers aviation demand.

The voluntary standards have adapted. Verra, Gold Standard and others now offer labels or tags that show whether a credit carries a corresponding adjustment. Check each program’s current rules.

What developers should do

• Decide early whether you are targeting voluntary, CORSIA or ITMO buyers.
• Understand which Indonesian approvals you need for each route, and how long they take.
• Make sure your data meets both the international standard and the domestic registry. Projects may report into both.
• Write authorisation risk into offtake contracts: who bears the cost if a letter is delayed or refused.
• Avoid double counting between your project, the jurisdiction and the national inventory.

What buyers should do

• Ask whether the credit is authorised and whether a corresponding adjustment has been applied.
• Match the credit to the claim you plan to make.
• Check for changes in Indonesian rules before each purchase.

Common misunderstandings

• “All international credits need a corresponding adjustment.” Not true for voluntary contribution claims, though some buyers now prefer adjusted credits.
• “A Verra or Gold Standard registration means the credit is authorised.” Program registration and host country authorisation are separate decisions.
• “Authorisation is permanent and automatic.” Terms can include conditions, and Indonesian rules on which sectors and activities may be authorised can change.
• “Article 6.4 is the same as the old CDM.” It builds on CDM experience but has new rules, methodologies and governance.

Getting help

Article 6 rules and Indonesian implementing regulations are still evolving. Our Indonesian carbon regulatory navigation service maps which approvals your project needs and how they affect your buyers. The Indonesian regulation hub and the forest carbon hub give wider context. Every Article 6 page is listed below.