Voluntary carbon market vs Article 6 of the Paris Agreement
53 matching capital sources on the ASFIP database · Last checked October 2026
Carbon credits from the same project can be sold in two very different markets. In the voluntary carbon market (VCM), companies buy credits to support their own climate commitments. Under Article 6 of the Paris Agreement, countries trade emission reductions to meet their national targets.
The choice affects who buys, what price you get, and what you need from the host government. This guide sets out the differences in plain terms.
Find the right route for your project
Ask iSustain Advisor Live about article 6 for your country, sector and project stage. Your free result includes a project summary, match count and three named sample organisations.
The voluntary carbon market
Credits are issued under independent standards such as Verra and Gold Standard.
- Companies buy credits, often through brokers or platforms.
- No government authorisation is usually needed, but buyers increasingly ask for quality labels and, for some claims, host-country authorisation.
Article 6.2: bilateral cooperation
Two countries agree to transfer emission reductions (ITMOs).
- The host country must authorise the transfer and apply a corresponding adjustment — removing those reductions from its own national accounts.
- Buyers are governments or companies they nominate.
- Prices are often higher and more stable.
Article 6.4: the Paris Agreement Crediting Mechanism
A UN-supervised crediting mechanism succeeding the Kyoto-era Clean Development Mechanism, with its own methodologies and supervisory body. Credits can be authorised for country use or used for other purposes.
Which route fits your project?
Many developers design projects to be eligible for both.
- If your host country has an Article 6 framework and a bilateral agreement with a buyer country, Article 6.2 can offer better prices and long-term offtake.
- If not, or if you need speed, the voluntary market remains the most accessible route.
The funders
Each profile shows mandate, instruments and sector appetite. Verified contacts and application routes are available to members.
- Singapore Carbon Tax Article 6 ProcurementCarbon Finance Mechanism · SingaporeSingapore allows carbon-taxable companies to surrender authorised Article 6.2 credits, and has signed implementation agreements and MOUs with several African countries including Ghana, Rwanda and Kenya.Carbon Credits / ERPAResults-based Finance
- Symbiosis CoalitionCarbon Finance Mechanism · United StatesBuyers coalition of Google, Meta, Microsoft and Salesforce contracting high-quality nature-based restoration credits, with tenders open to African restoration projects.Carbon Credits / ERPAResults-based Finance
- BioCarbon PartnersCarbon Finance Mechanism · ZambiaZambia-headquartered, award-winning REDD+ project developer that structures and finances forest carbon offset projects across Zambia and Mozambique, channelling carbon credit revenue into community conservation payments and protecting over 2.1 million hectares of dryland forest through its flagship Luangwa Community Forests Project.Carbon Credits / ERPAResults-based Finance
- NextGen CDR FacilityCarbon Finance Mechanism · SwitzerlandJoint venture of South Pole and Mitsubishi Corporation aggregating corporate demand to buy durable carbon dioxide removal at scale, with African supply in its portfolio.Carbon Credits / ERPAResults-based Finance
- LEAF CoalitionCarbon Finance Mechanism · United StatesPublic-private coalition purchasing jurisdictional REDD+ credits at scale, with African jurisdictions among signed agreements.Carbon Credits / ERPAResults-based Finance
- Korea Article 6 / ITMO ProcurementGovernment Agency · South KoreaKorea uses internationally transferred mitigation outcomes towards its NDC and supports overseas mitigation projects, including African renewable energy and waste programmes.Carbon Credits / ERPAResults-based Finance
Showing 6 of 53 matching capital sources. The remaining 47 — including their verified routes and eligibility criteria — are reserved for members.
Common questions
- What is Article 6 of the Paris Agreement?
- The part of the Paris Agreement that lets countries cooperate on emission reductions, including trading them. Article 6.2 covers bilateral deals; Article 6.4 creates a UN-supervised crediting mechanism.
- What is a corresponding adjustment?
- An accounting entry where the host country removes transferred reductions from its own national total, so the same tonne is not counted twice.
- Which African countries have Article 6 frameworks?
- Several, including Ghana, Kenya, Rwanda and Zimbabwe, have set up carbon market authorities or frameworks. Their national bodies are listed on this page.
Related guides
Official sources: UNFCCC Article 6 · Verra · Gold Standard · ICVCM Core Carbon Principles. Reviewed by the iSustain Global research team against funders' published criteria.