Carbon Business Council members have identified roughly C$900 million in potential carbon removal credit sales waiting on a clear pathway to international markets — a sum the federal government moved closer to unlocking Thursday when Ottawa launched a consultation on a framework permitting Canadian companies to trade Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6 of the Paris Agreement.

The proposed framework would give Canadian carbon removal developers, emissions-reduction projects and nature-based solution providers access to international buyers and capital under bilateral or multilateral arrangements governed by Article 6.2.

Environment Minister Julie Dabrusin framed the move as an industrial strategy. "The trading of ITMOs under the Paris Agreement can unlock greater global climate action by making it easier to transfer emission reductions and removals between countries," she said. "This is about turning our natural advantages and homegrown climate innovation into investment, good jobs, and new export opportunities."

What is Ottawa actually proposing?

The consultation paper signals federal intent to participate in international carbon markets, with rules designed to prevent the same emissions reduction from being counted by two countries. Any transactions would require accounting and reporting arrangements to maintain transparency and environmental integrity, per UN guidance.

Ottawa cited built advantages the framework could leverage: clean electricity capacity, industrial capabilities, natural resources and geological storage potential for CO2.

How big is the sector waiting on this?

The C$900 million figure comes from the Carbon Business Council's Canadian coalition members, according to associate director of policy Melissa Hillier. "Carbon Business Council's Canadian coalition members have identified roughly C$900 million in potential carbon removal credit sales waiting on a clear pathway to export to the international market," Hillier said.

"With strong rules on environmental integrity and delivery, Canada can convert this global investment opportunity into durable removal projects, skilled jobs, and economic growth in communities across the country," she added.

Carbon Removal Canada projects a scaled industry could generate C$78 billion in annual GDP gains and support 300,000 jobs by 2050. The advocacy group flagged those figures as projections rather than guaranteed outcomes.

Who is pushing for the framework?

Direct air capture developer Deep Sky welcomed the consultation. CEO Alex Petre described the announcement as foundational to a new industry, citing Canada's clean power base, industrial expertise and geological storage capacity for permanent CO2 sequestration.

Carbon Removal Canada executive director Na'im Merchant framed the consultation as the result of sustained industry advocacy. The group's members have spent the past year pressing Ottawa to act so Canadian developers can compete in international markets.

What does the consultation cover?

The federal government has not set a timeline for a final framework. It said consultations with provinces, territories, Indigenous organizations and other stakeholders will determine how ITMOs operate domestically.

The announcement follows a Sept. 21 paper from the International Emissions Trading Association titled "Canada's Carbon Market Opportunity: A Vision for Climate Competitiveness & Growth." IETA argues that greater interoperability, fungibility and linkage among Canadian carbon markets should precede expanded international participation.

The IETA paper also highlights Article 6 cooperation, carbon accounting, low-carbon product markets and strategic carbon-market partnerships as priority areas. It claims better coordination could reduce compliance costs, improve investment certainty and attract capital to low-carbon industries.

What happens next?

The consultation outcome will shape the structure of any Canadian ITMO trading system. Until Ottawa finalizes the framework and resolves provincial-territorial-Indigenous consultation requirements, the C$900 million in flagged potential sales remain on paper.

The federal government's next milestone is the conclusion of the consultation and publication of any resulting regulatory or policy framework governing ITMO transfers.