akar.earthITMO: Definition
What is an ITMO (internationally transferred mitigation outcome)? How Article 6.2 transfers and adjustments work, and what ITMOs mean for Indonesia.
An ITMO (internationally transferred mitigation outcome) is an emission reduction or removal generated in one country and transferred to another under Article 6.2 of the Paris Agreement, to be used toward the buyer country’s NDC or other international mitigation purposes. Each transfer requires host-country authorisation and a corresponding adjustment.
Why it matters
ITMOs let countries cooperate on climate targets. A buyer country can pay for mitigation abroad where it is cheaper, while the seller gets finance. Because the host country gives up the outcome for its own NDC accounting, ITMOs carry a clear claim: the tonne belongs to the buyer. That makes them attractive for compliance users and some voluntary buyers.
How ITMOs work
- Bilateral agreements: countries sign Article 6.2 cooperation agreements setting eligible activities and rules.
- Authorisation: the host country authorises specific outcomes for specific uses.
- Transfer and tracking: units move through registries and are reported to the UNFCCC.
- Adjustment: the host applies a corresponding adjustment in its reporting.
Our Article 6.2 ITMOs guide explains the process, and the Article 6.2 vs 6.4 comparison contrasts it with the UN-run mechanism.
Indonesia angle
Indonesia has bilateral cooperation experience, notably the Joint Crediting Mechanism with Japan; see JCM Indonesia-Japan. Under Perpres 110/2025 and related rules, international transfers sit within a national framework that also includes SRUK and domestic trading. Because forestry is so central to Indonesia’s NDC, check current policy carefully before planning forest ITMOs.
Common mistakes
- Calling any exported credit an ITMO without authorisation.
- Assuming ITMO prices will match voluntary prices; authorisation adds cost and scarcity.
- Overlooking that Indonesia may restrict which sectors or units it authorises.
- Forgetting that an ITMO sold to one buyer cannot also support a claim by the host country or another buyer.
Related terms
See corresponding adjustment, NDC and authorisation letters, or explore the Article 6 hub.
Frequently asked questions
Is an ITMO a carbon credit?
An ITMO is a mitigation outcome transferred between countries under Article 6.2. It can be a credit from a project, but what makes it an ITMO is host-country authorisation and a corresponding adjustment.
Who buys ITMOs?
Mainly governments meeting their NDCs, such as Switzerland, Singapore and Japan through bilateral agreements, plus airlines under CORSIA and some companies seeking authorised units.