A major development in the carbon markets on the sidelines of COP28 has happened that paves the way for how carbon trading between governments could be done. Sweden and Switzerland, two countries currently developing carbon dioxide removal capacities, have signed a declaration of intent to test the rules for international carbon markets in the field of carbon removal technologies.
They intend to run a pilot aiming to involve an international transfer of a symbolic amount of carbon removals in order to test and create a standard in carbon trading among countries. The international market for carbon removals trading will follow the Paris Agreement framework.
“This unique pilot cooperation is about creating a functioning market for carbon removals under the Paris Agreement rulebook. It will be an important tool in the much-needed effort to reduce global emissions at greater speed. Together with Switzerland, we are implementing the intentions of the Paris Agreement and paving the way for other countries’ cooperation”, commented Robert Andrén Director General of the Swedish Energy Agency.
After the signing of the declaration of intent between the countries that happened at the COP28 conference in Dubai, what follows is that the Swedish Energy Agency and the Swiss Department of the Environment, Transport, Energy and Communications will start conducting an analysis to investigate the details of the cooperation.
“Discussions are currently underway on how international trade with carbon removals under the Paris Agreement should be regulated. The pilot cooperation between Sweden and Switzerland is expected to provide valuable experience and contribute to raised ambition in the global climate mitigation work,” also commented Sandra Lindström, Head of International Climate Cooperation at the Swedish Energy Agency.