MECHANISMS FOR ENABLING CORRESPONDING ADJUSTMENTS

Corresponding adjustments are Article 6 accounting entries that prevent a mitigation outcome from being counted by both the host country and its international user. They do not alter national greenhouse-gas inventories; they adjust the emissions balance used to assess NDC achievement. This lever establishes the legal, administrative and registry mechanisms through which a host country authorises CDR units for use toward another NDC or another international mitigation purpose, including CORSIA or designated voluntary claims.

Core design questions include eligible credit types and durability tiers, authorisation pathways and permitted claim types. Registry connectivity, unique serial numbers and authorisation markers can distinguish adjusted units and track their transfer, cancellation, retirement and use. CDR-specific rules need to address reversals after transfer. The framework also needs coherence with domestic NDCs, the national inventory systems feeding NDC accounting, VAT and tax treatment, and consumer-facing claims standards.

Enabling corresponding adjustments can unlock credible cross-border demand for removals, allowing governments and companies to finance CDR where it is most cost-effective without double counting. It can connect voluntary crediting actors with Article 6 and compliance markets, improve price discovery for adjusted durable removals and incentivise host countries to authorise high-quality projects while strengthening their domestic MRV systems.

Opaque or slow authorisation can stall markets and create arbitrage between adjusted and non-adjusted units, while over-authorisation can transfer mitigation outcomes that the host country later needs for its own NDC. Weak MRV or unclear reversal treatment can create liabilities for hosts and buyers, and poorly designed corporate claims may imply benefits the authorisation does not support. Complex registry requirements also raise cybersecurity and data-quality risks, inflate transaction costs and may exclude smaller host countries.

Monitoring & Evaluation By tracking authorisation volumes, processing times, the share of issued units subsequently authorised and first-transferred, and the premium paid for adjusted durable removals, policymakers can identify market bottlenecks. Registry reconciliation and audits of corporate claims can detect inconsistent accounting or claims. Comparing adjusted exports with host-country NDC progress can show whether transfers remain compatible with domestic mitigation needs.

Coordination among environment ministries, national registries, inventory and statistics offices and tax authorities can connect authorisation decisions with NDC accounting and fiscal treatment. Engagement with developers, standards bodies and carbon exchanges can improve application and tracking systems. Consumer-protection authorities and NGOs can help align claims language with authorised uses, while MDBs and DFIs can support authorisation, digitisation and verification capacity in host countries.

National governments are the primary implementing actors: the host country authorises the transfer and assumes the corresponding accounting obligation, while the acquiring country accounts for units used toward its NDC. The UNFCCC Article 6.2 Reference Manual provides the international rules for authorisation, reporting, review and corresponding adjustments, but international bodies cannot authorise units on behalf of a host country. At supranational level, the EU’s 2040 framework allows up to 5% of the target to be met through international carbon credits, which will require common rules for their quality, acquisition and accounting. This EU role is emerging rather than operational.