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Letter of Authorisation (LoA)

Published: 22 Apr 2024

Last Updated: 21 May 2024

A Letter of Authorisation (LoA) is a communication from the host country of a carbon project stating that a carbon credit from that project can be transferred abroad under the Paris Agreement’s Article 6 mechanism.

Under Article 6, LoAs are provided to confirm that a carbon credit, or mitigation unit, can be transferred abroad, and that the host country will remove this unit from its national carbon accounting and NDC. It represents a commitment to apply a corresponding adjustment to an NDC once the transfer takes place.