First credits on private “ITMO Registry” offered for as little as US$1 as CDM units migrate ahead of closure
By Article 6 Network
Credits moved from the UN’s Clean Development Mechanism (CDM), which is due to close, into a new privately owned registry intended to list Article 6.2 units are being offered for as little as US$1. The price level suggests heavy discounting of legacy CDM supply. It also raises questions about how such units relate to fully authorised, correspondingly adjusted ITMOs.
A newly launched, privately owned registry branded for Article 6.2 units has received its first credits, transferred out of the CDM. Some of these units are being offered at prices as low as US$1.
The timing reflects the end of the CDM. The mechanism closes at the end of 2026: the last CDM credits are issued in June, and remaining units must be transferred or cancelled by December. CDM activities that request transition and receive host-country approval can move into the Paris Agreement Crediting Mechanism (PACM), and certain pre-2021 CERs may be used towards first NDCs under specific conditions. Units moved into private registries do not automatically become ITMOs. Under Article 6.2 rules, a credit is only an ITMO once a host country has authorised it and committed to apply a corresponding adjustment.
The registry was launched earlier this year, ahead of the CDM’s closure, with its operator claiming the lowest costs for voluntary market players trading credits approved for Article 6. The registry market is crowded. The UNFCCC is building its own Article 6.2 international registry, with Switzerland among the countries that say they will move ITMOs into it once it is operational. Other providers, including the Global Carbon Council and UNDP’s open-source national registry, also offer Article 6.2 tracking.
Signals to watch
- “ITMO” branding is not the same as authorisation: Buyers should check whether units carry a host-country Letter of Authorisation and a corresponding adjustment recorded in the transferring country’s reporting. Without these, the units are voluntary or legacy credits, whatever registry holds them, and are not eligible for NDC use, CORSIA or Article 6 compliance purposes.
- Price split between legacy and authorised units: US$1 offers for migrated CDM credits contrast sharply with prices for authorised ITMOs and CORSIA-eligible units. Expect a growing gap between cheap legacy supply and authorised, correspondingly adjusted credits, which will reinforce the authorisation premium.
- Reputational risk for the Article 6 label: Low-priced units marketed under an Article 6 brand could confuse buyers and attract criticism from integrity watchdogs. Governments and standard-setters may push for clearer labelling rules on what can be described as an ITMO.
- Fragmentation of registry infrastructure: Private registries outside UNFCCC and national systems add interoperability and double-counting risk. Watch whether host governments and buyer countries recognise or connect with such registries, or insist on national and UN systems.
- CDM wind-down puts supply under pressure: With the December deadline approaching, holders of unconverted CDM units face a choice between PACM transition, cancellation and private registries. Watch for more discounted offers as the deadline nears.
Sources:
- Argus – UN starts carbon market registry development
- Carbon Pulse – New ITMO registry for Article 6 trade seeks to mop up CDM carbon credits
- Singapore NCCS – Article 6.2 Crediting Protocol
- UNDP – National Carbon Credit Registry
