Sweden, Zambia Article 6 agreement eyes renewables

Sweden and Zambia have signed an initial agreement on climate co-operation under the Paris climate deal, with a focus on investing in renewable power, the countries said.

Zambia's ministry of green economy and environment and the Swedish Energy Agency are now negotiating a bilateral agreement under Article 6.2 of the Paris agreement. This will allow Zambia to generate so-called internationally transferred mitigation outcomes (Itmos), representing emissions reductions, that Sweden may count towards its own emissions cut targets under the UN framework.

Most of the carbon credits that Zambia has generated under the UN's Kyoto protocol-era clean development mechanism and in the voluntary carbon market make use of the REDD+ programme, aimed at reducing deforestation and forest degradation and enhancing carbon stocks.

Given the acute lack of electricity in Zambia because of a drought in the region — the country is 85pc dependent on hydropower for its generation — the Zambian government has proposed that Article 6.2 investments be directed at the country's power system, such as solar and wind power capacity.

And experts from Kenya-based Climate Action Platform–Africa (CAP-A) and the UK's Foreign, Commonwealth and Development Office (FCDO) have suggested that Zambia diversify beyond REDD+ and look at opportunities in sectors such as energy or waste management to maximise its carbon market potential.

"The Zambian government has taken huge steps towards addressing the nation's current energy crisis," Zambia's green economy and environment minister Douty Chibamba said at the signing of the agreement in Lusaka yesterday.

The Swedish Energy Agency aims for projects that provide "large emissions reductions" while having a positive long-term effect on Zambia's energy system, its head of international climate co-operation Sandra Lindstrom said. Projects must also benefit local communities and contribute to sustainable development, Lindstrom said, reflecting the shift away from the Kyoto protocol, under which issues such as indigenous rights or benefit sharing were largely ignored.

CAP-A and the FCDO will launch a programme in September aimed at finalising Zambia's carbon market framework, notably a balanced benefit sharing and distribution system.

The Swedish ambassador stressed at the signing of the agreement that Sweden's investments under Article 6.2 will complement existing support from Sweden's development agency in Zambia and the region.

The initial agreement is Sweden's third with a project host country. Sweden has also signed a bilateral agreement under Article 6.2 with Ghana.

By Chloe Jardine