Honduras and Suriname join forces with German lender to issue Article 6 credits

Honduras and Suriname are set to issue Article 6 carbon credits with the backing of Deutsche Bank and the Coalition of Rainforest Nations (CfRN), in a move aimed at scaling up sales of credits to corporate buyers.

Both Latin American countries have been longstanding advocates of Article 6 credits, with Suriname announcing in 2023 its intention to become the first issuer. At the COP30 summit in Belém, the two nations confirmed a partnership with Deutsche Bank to arrange the sale of credits. Three German companies – Siemens, Bayer and Symrise – have stepped forward as prospective buyers, although further details of the transaction have not been disclosed.

Article 6.2 of the Paris Agreement enables countries to enter bilateral or multilateral arrangements to transfer mitigation outcomes, often referred to as Internationally Transferred Mitigation Outcomes (ITMOs).

Suriname is among the few nations worldwide that are already carbon negative, thanks to rainforests covering more than 90% of its territory. Honduras has a relatively small carbon footprint, with renewables accounting for about 60% of its energy mix.

While many nature-based carbon credits focus on reforestation or afforestation, the agreement between the two countries and the German corporates centres on compensating the protection of standing rainforests at a national level, with the aim of preserving these ecosystems.

However, carbon credits remain controversial. Research by Carbon Market Watch suggests that only one in 26 issued credits has resulted in genuine emissions reductions.