Corresponding Adjustments

Carbon & Climate Finance

Definition

A corresponding adjustment is an accounting adjustment used under Article 6-style carbon accounting so that one emissions reduction is not claimed by both the host country and the buyer country or entity.

Why it matters

Without clear adjustment rules, a buyer may think it has purchased a unique climate claim while the host country also counts the same reduction toward its own target.

Technical details

Why they exist

Carbon markets need a way to avoid double claiming across countries and voluntary buyers.

A host country can authorize the transfer of mitigation outcomes and adjust its own accounting accordingly.

The presence or absence of an adjustment affects the strength and type of claim a buyer can make.

Buyer diligence

Check whether the credit is authorized, whether a corresponding adjustment has been applied or promised, what registry records show, and whether the buyer's intended claim requires one.

Related Terms