With world-class industrial expertise, geology, clean power, abundant natural resources, and a strong policy foundation, Canada has an opportunity to build a globally competitive carbon removal industry and become a leading producer of high-quality carbon removal technologies-not just because it is essential for the world's climate, but because it will be critical to the competitiveness of Canadian firms in a decarbonizing world.
Today, the Honourable Julie Dabrusin, Minister of the Environment, Climate Change and Nature, announced that the Government of Canada is exploring a policy framework to trade internationally transferred mitigation outcomes (ITMOs), which could allow Canadian companies to participate in international carbon markets catalyzing further investment in climate mitigation activities, including deployment of carbon removal technologies and nature‑based solutions.
Outlined under Article 6 of the Paris Agreement, countries may choose to cooperate in meeting their national climate targets through measures such as international carbon markets and the trading of ITMOs. ITMOs could mobilize investment in projects that generate high-integrity emissions reductions and removals, here in Canada and abroad, and create opportunities for deployment of Canadian technology and expertise.
According to a report by Carbon Removal Canada, by 2050 a scaled-up carbon dioxide removal industry in Canada could contribute billions to Canada's gross domestic product and create hundreds of thousands of jobs. The development of an ITMO framework complements the Spring Economic Update of over $13 billion in international climate finance, making Canada one of the first countries to announce climate finance pledges beyond 2026.
Canada will continue to pursue new and promising policies that have strong potential and align with a net-zero future, including the potential for international and domestic offset credits.
