Bilateral cooperation under the Paris Agreement

The Swedish Energy Agency is preparing for bilateral cooperation under Article 6 of the Paris Agreementtargeting the mitigation of energy related emissions in middle income countries. 

The process of establishing bilateral cooperation under Article 6 involves discussions on two levels. Firstly, there is a dialogue between a buyer and a host country to establish common ground for the transfer of internationally transferred mitigation outcomes (ITMOs). Secondly, the buyer country and the project owners within the host country must agree on how ITMOs will be produced and contracted.  

In December 2019, The Swedish Energy Agency (SEA) published a global call for proposals on international climate collaborations within the Article 6 framework of the Paris Agreement. Over 60 suggested projects and activities were received, out of which six proposals were selected for further development. 

During the fall of 2020, SEA decided to support these six proposals in their development of more detailed project plans, with a focus on how the projects would comply with the Article 6 framework. These project documents will form a foundation for future decisions on financing and implementation and will contribute to the development of methodological frameworks. They will help shed light on the structures for successful cooperation between buyer and host countries. 

The chosen proposals include: 

  • Biogas production in Argentina and the Dominican Republic 
  • Landfill gas collection in Colombia 
  • Efficient household stoves in Ethiopia 
  • Solar PV for health centers in Ghana 
  • Production of green hydrogen in South Africa 

In parallel to the progress of these Article 6 programs, there are ongoing dialogues with the respective host countries on how the bilateral collaborations should be designed. In order to implement an Article 6 collaboration, an agreement with the host country must be established to determine the conditions and rules for the collaboration, and for the activities intended to result in emission reduction outcomes. The agreement should also confirm the host countries willingness to perform the so called corresponding adjustments of the emission outcomes that have been transferred to Sweden.  

Cooperation with the Global Green Growth Institute 

In order to receive support in finding new international collaborations, and in continuing the development of the six selected proposals, SEA joined a tailor-made program with the Global Green Growth Institute (GGGI). GGGI is a treaty-based organization with its headquarters in South Korea, working with around 30 member countries to create sustainable growth. What separates GGGI from other international organizations is that their staff work within government ministries in member countries, giving the organization a unique position. 

GGGI has vast experience in capacity building, with several potential host countries for Article 6-cooperation among their members. The objective of the collaboration between SEA and GGGI is to develop ideas for feasible projects and build the competence and institutional infrastructure necessary for host countries to trade with emission outcomes. SEA contributes with 35 million SEK to the program, which runs between 2020 and 2022. 

In 2020, the program with GGGI has led to four mitigation activities in three different countries. The activities are: 

  • Geothermal energy production in Ethiopia 
  • Solar PV in industrial parks in Ethiopia 
  • Energy efficiency in the textile industry in Cambodia 
  • Municipal scale biogas in Nepal 

In parallel to these activities, GGGI has developed a blueprint for what the institutional infrastructure could look like in the countries engaging in Article 6-collaborations with Sweden, as well as blueprints for legal documents between participating countries.  

Virtual pilots 2020 

To investigate and test what international climate cooperation might look like under the Paris Agreement, SEA conducted several virtual pilots in 2020. More information on the virtual pilots can be found here.