Zambia, Norway Strike Carbon Agreement to Drive Renewable Energy Growth

Zambia and Norway have entered into a landmark carbon partnership aimed at accelerating renewable energy investment and strengthening energy security, with the signing of a Mitigation Outcome Purchase Agreement (MOPA) under the Carbon Feed-in Premium (CFIP) programme.

The agreement, signed on January 2, 2026, in Lusaka, falls under the two countries’ bilateral Article 6 cooperation framework, concluded during COP29 in Baku. It is expected to facilitate the addition of up to 300 megawatts of clean power to Zambia’s national grid and cut an estimated 3.5 million tonnes of carbon emissions over a ten-year period.

Minister of Green Economy and Environment Mike Mposha said the deal comes at a critical moment as Zambia seeks to reduce its dependence on hydropower amid climate-related risks. He explained that the CFIP programme will attract Independent Power Producers by offering carbon-linked incentive payments tied to verified emission reductions, known as Internationally Transferred Mitigation Outcomes (ITMOs).

According to the minister, the initiative will improve project viability, enhance energy security and support Zambia’s sustainable development objectives. The selection of eligible renewable energy developers is expected to begin on April 1, 2026, through a transparent process.

Permanent Secretary for Electricity at the Ministry of Energy, Arnold Simwaba, said the programme will strengthen project bankability, accelerate clean energy deployment and improve grid reliability, positioning Zambia as a leader in Article 6 implementation in Africa.

Norway’s Minister of Climate and Environment, Andreas Bjelland Eriksen, described the agreement as a strong example of climate cooperation that delivers measurable emission reductions while maintaining high standards of transparency.

The initiative is supported by the Norwegian Global Emission Reduction (NOGER) Initiative through the Norwegian Article 6 Climate Action Fund and implemented with technical backing from the Global Green Growth Institute (GGGI). Under the arrangement, GGGI will act on Norway’s behalf, while Zambia National Commercial Bank will aggregate and trade carbon credits for participating project developers.