Zambia And Norway Ink Emissions Reductions Purchase Deal To Spur Renewables

Zambia And Norway Ink Emissions Reductions Purchase Deal To Spur Renewables - Carbon Herald
Image courtesy of GGGI

Norway and Zambia have signed a landmark Mitigation Outcome Purchase Agreement (MOPA) under Article 6 of the Paris Agreement, establishing a results-based framework that will link verified emissions reductions from renewable energy to performance-based payments, the Global Green Growth Institute (GGGI) announced on Wednesday.

The pact launches the Carbon Feed-In Premium (CFIP) Program, designed to help attract investment into clean electricity generation in Zambia by reducing financial risk for developers and supporting national energy and climate objectives.

Under the program, payments will be tied to independently verified greenhouse gas (GHG) reductions associated with renewable power delivered to Zambia’s grid, according to GGGI.

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The cooperation builds on Zambia’s multi-year preparations for Article 6 participation, including development of a Carbon Market Framework and technical work to define robust emission factors for its power sector, part of a readiness push supported by the Supporting Preparedness for Article 6 Cooperation (SPAR6C) initiative.

Zambia has historically depended on hydropower, which accounted for roughly 82% of its generation capacity in 2024, but prolonged droughts have exposed the grid’s vulnerability and prompted urgent interest in diversified renewable sources.

The CFIP program aims to improve energy security and climate outcomes by linking carbon finance directly to renewable deployment.

Zambian Minister of Green Economy and Environment Mike Mposha described the agreement as a boost for clean and reliable power investment that strengthens energy security and accelerates climate goals.

In turn, Norway’s Minister of Climate and Environment Andreas Bjelland Eriksen said the cooperation reinforces efforts to drive measurable emission cuts and deepen private green finance under Article 6 rules.

Zambia, Norway, and GGGI will now finalize implementation arrangements with the objective of channeling results-based finance into priority renewable investments that deliver wide-ranging climate, energy and development benefits.

Read more: New Joint Venture Aims To Support $100B Carbon Mitigation Pipeline Under Article 6

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