akar.earthCorresponding adjustment: Definition
What is a corresponding adjustment under Article 6? How countries avoid double counting when carbon units move abroad, and what it means for Indonesian credits.
A corresponding adjustment is an accounting entry a country makes in its Paris Agreement reporting when it transfers emission reductions or removals abroad. The host country adds the transferred amount back to its own emissions balance, so the same tonne is not counted toward both its NDC and the buyer’s target.
Why it matters
Corresponding adjustments prevent double claiming between countries. Under Article 6.2, internationally transferred mitigation outcomes (ITMOs) require them. CORSIA, the aviation offsetting scheme, requires authorised units with corresponding adjustments for its current compliance phase. Some voluntary buyers also prefer adjusted credits for stronger claims. Authorised, adjusted units can command a premium, but they cost the host country part of its own NDC progress.
How it works
- A project generates mitigation outcomes in the host country.
- The host country issues an authorisation letter for specific units and uses.
- Units are transferred and the first transfer is recorded in registries and national reports.
- The host country applies the adjustment in its biennial transparency reporting.
- Registries tag units with their authorisation status.
Indonesia angle
Indonesia’s position on authorisation has shifted over time, and the current framework under Perpres 110/2025 sets out how international transfers and adjustments are handled. Because forestry is central to Indonesia’s NDC and its FOLU Net Sink 2030 target, the government is cautious about authorising forest units that could make its own targets harder to meet. Projects aiming at Article 6 or CORSIA demand should confirm the current authorisation process. See corresponding adjustments in Indonesia.
Common mistakes
- Assuming a programme label such as CCP implies a corresponding adjustment. It does not.
- Selling credits as “Article 6 ready” without a host-country authorisation letter.
- Ignoring that authorisation can be limited to particular uses.
Related terms
See ITMO, NDC and authorisation, or explore the Article 6 hub.
Frequently asked questions
Do voluntary carbon credits need a corresponding adjustment?
Not always. Credits used for contribution claims typically do not. Credits used toward another country's NDC or for CORSIA compliance generally need host-country authorisation and a corresponding adjustment.
Who applies the corresponding adjustment?
The host country, in its Paris Agreement reporting, after it has authorised the transfer of the mitigation outcome.