Article 6 Labels for Indian Carbon Credit Buyers (2026): Do You Need a Corresponding Adjustment?
If you are buying carbon credits for an Indian company, you will increasingly see labels such as "Article 6 Authorized" or "Correspondingly Adjusted" attached to credits, usually at a higher asking price. Before paying that premium, you need to know whether your use case actually requires one. For most voluntary buyers it does not, but for some it does.
Why Article 6 labels now appear on credit listings
Under the Paris Agreement, a country that transfers a mitigation outcome abroad must account for it so the same tonne is not counted twice. The mechanism is a corresponding adjustment (CA): the host country adds the transferred tonnes back to its own emissions balance. Registries have built labels around this. Verra, for example, now offers an Article 6 label family that signals whether a credit is authorised, for which purposes, and whether a CA has been confirmed.
Our explainers on Article 6.4 going live cover the mechanics. This post is about the purchase decision: which label, if any, belongs in your contract.
The labels, in plain language
Based on Verra's published buyer guide, the options broadly work as follows:
Standard credit, no Article 6 label: suitable for voluntary uses where a corresponding adjustment is not needed. Verra states that Article 6 authorisation is not required under the Paris Agreement for voluntary uses.
Authorized, international mitigation purposes: the host country's Letter of Authorization (LOA) explicitly covers use toward international mitigation, such as CORSIA for airlines.
Authorized, NDC use: the credit may be used toward another country's Nationally Determined Contribution, with the first international transfer defined as the trigger.
Authorized, other purposes: the host country has formally recognised the use and committed to a CA, so the outcome is not also counted toward its own targets.
Correspondingly adjusted: the host country has confirmed the CA in its Biennial Transparency Report to the UNFCCC. Verra describes this as the highest level of assurance that the mitigation outcome has been fully accounted for.
An authorisation label tells you what a government has agreed to. A corresponding adjustment tells you what it has actually done. Pay for the second only if your claim depends on it.
What India's authorisation framework means for you
Based on secondary sources, India's Article 6 role sits with the Ministry of Environment, Forest and Climate Change through a National Designated Authority notified in 2022, which evaluates eligible activities and authorises international transfers where applicable. Reported eligible activities are technology-led, such as green hydrogen, offshore wind, sustainable aviation fuel and CCUS, rather than the nature-based or cookstove credits many voluntary buyers purchase today.
Two practical consequences follow for an Indian buyer:
Do not assume a credit from an Indian project is authorised. Authorisation is project-specific and needs an LOA that names the use case.
Domestic Carbon Credit Certificates under the Indian Carbon Market are not automatically eligible for international transfer. They follow their own retirement and accounting rules, so keep them separate from Article 6 credits in your books.
Please confirm all regulatory details against the official MoEFCC and BEE notifications before contracting, as rules and eligible-activity lists are still evolving.
Which label fits which Indian buyer
Voluntary Scope 1-3 offsetting or a net-zero residual claim: a standard high-quality credit is usually enough. Spend your budget on integrity (see the ICVCM CCP label explained and Verra vs Gold Standard) rather than on a CA premium.
Exporters or aviation-linked buyers facing CORSIA obligations: you need credits that carry an LOA covering international mitigation use and a CORSIA-eligible label. A plain voluntary credit will not do.
Companies whose investors or customers want no double-counting risk: consider a correspondingly adjusted or other-purposes-authorised credit, accepting that supply is thin and the price higher.
Forward buyers hoping a credit will be authorised later: be careful. Verra's guidance for NDC-use credits stresses a clear LOA and contractual protections for CA delivery. Without them, you carry the policy risk.
Contract protections if you pay for authorisation
If your use case justifies the premium, write the label into the agreement rather than relying on the listing. Our guide to purchase agreement clauses covers the basics. For Article 6 credits, add these:
A copy of the LOA, with the authorised use, authorised entities and first-transfer trigger stated.
A warranty that the credit will not be used or claimed by anyone else, and a remedy if the CA is not delivered, such as replacement credits or a refund.
Clarity on who bears the risk if the host country does not report the CA in its Biennial Transparency Report.
Insurance backing where available, which Verra recommends for some CORSIA-eligible structures when a CA is not yet confirmed.
Also keep your public wording in line with what you bought. A credit with an authorisation label does not by itself justify a stronger climate claim, so review how to avoid greenwashing risk in carbon-neutral claims before you publish.
Where Csquare fits
Csquare helps Indian companies work out whether they need an Article 6 label at all, shortlist projects that carry the right authorisation, and review LOAs and contract terms before money moves. If you are weighing a purchase, talk to the Csquare team and we will map your claim to the right credit type.
This article is general information, not legal or financial advice. Verify current rules with official sources.
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