While the global fight against climate change appears unorganised, hugely ineffective, futile, chaotic and to an extent, financed by governments with no commercial understanding, one section of the market, related to the trailblazing Clean Development Mechanism, which was launched in 2000 and mothballed in 2013, is now shining through: Article 6.2 and 6.4 of The Paris Agreement.
Articles 6.2 and 6.4 of The Paris Agreement allow for the creation, certification and trade of emission reductions, known as ITMOs, or Internationally Transferred Mitigation Outcomes.
ITMOs can then be used to offset compliance obligations for either sovereign states or companies working within a mandatory framework, such as The European Union Emission Trading Scheme. Increasingly, sovereign are setting up bilateral agreements to purchase ITMOs as costs are significantly lower than domestic emissions reductions (ITMO: €35 vs EUA €85 as of July 2026).
Because ITMOs can be achieved at a lower cost in the developing world, the race is on to find the “low hanging fruit”.
At present, in the UK, our obsession with “net zero at any cost”, leads us to penalise our industry and people, while importing carbon intensive materials and products from abroad,that have created their emissions already. It is absurd.
However, a more effective solution, which still solves the global warming problem is to pollute domestically while buying ITMOs from countries with lower abatement costs. This was so the developed world can retain and protect its industry.
The system also solves the problem of foreign aid, often described by economists as “poor people in rich countries giving money to rich people in poor countries”. Trade is always the solution over charity.
The official United Nations Framework Convention on Climate Change definition of an ITMO is as follows:
Internationally Transferred Mitigation Outcomes (ITMOs) are internationally recognised carbon units created under Article 6 of the Paris Agreement. They represent verified greenhouse gas emission reductions or removals that can be transferred between countries to help achieve their respective climate commitments. The framework is designed to facilitate international cooperation while ensuring robust accounting and avoiding double counting of emissions reductions.
I have waited circa 14 years for this market to return.
In its first iteration it was called The Clean Development Mechanism and was one of the two flexible mechanisms of The Kyoto Protocol. The Clean Development Mechanism (“CDM”) was considered a trailblazer, and it facilitated circa 10,000 Environmental Projects in the Developing World.
When I was first involved in this market, in 2007 while at Tullet Prebon, which at that time was the world’s largest interdealer broker, these CDM emissions credits had increased in value over the last 10 years and were trading at around €24 per ton of CO2e abated and the main permit, called a European Union Allowance was circa €26. I founded Carbon 350 Ltd in 2008, and we were involved in roughly 50 projects. Some of our transactions are detailed on the following pages. We made €1.00 per ton.
ITMOs are currently priced at €35, with EUA’s at €85, significant advances from 2008. If history repeats itself the spread will narrow and ITMO prices will rise. Norway, Switzerland, South Korea and a few corporations are the main buyers at present. Our feeling is ITMOs will become the default emission credit and a major commodity, in the next three years.
It worth mentioning that Global ITMO Ltd, will also be involving itself in project development as well as developing and selling the credits.
By the time you read this, Global ITMO Ltd should have taken over Carbon 350 Ltd, further adding to our capabilities and John and Laud, founders of our partners in Ghana, have joined the board of Global ITMO further strengthening our ties to our Ghanaian partner.
With this small funding round, we anticipate £200,000 of revenue by Christmas 2026.
