Sweden's first legally binding agreement on emissions trading under the Paris Agreement

The Swedish Energy Agency and Ghana's Ministry of Environment have signed a bilateral agreement on climate cooperation. The agreement regulates transactions of emission reduction and removal units between Sweden and Ghana.

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Sweden and Ghana have had a Memorandum of Understanding on climate cooperation under the Paris Agreement since 2021. The new, legally binding agreement is a prerequisite for initiating climate projects in Ghana with financing from the Swedish Energy Agency. Caroline Asserup, Head of the Climate Department at the Swedish Energy Agency, states:

“Our collaboration with Ghana is a good example of our international work, aiming to reduce greenhouse gas emissions and speeding up global climate mitigation.”

First project in Ghana already underway

Ghana is a pioneer in emissions trading under the Paris Agreement rules. Early on, they recognised the potential of attracting international finance for their climate and energy transition. Since the Memorandum of Understanding between Sweden and Ghana came into force, the Swedish Energy Agency has already agreed to purchase emissions reductions generated by a project within the framework of the cooperation. The project will lead to the installation of roof-mounted solar panels with battery storage for commercial and industrial facilities across Ghana. Sandra Lindström, Head of International Climate Cooperation at the Swedish Energy Agency, explains:

“Our first project in Ghana is estimated to reduce emissions in the country by around 165,000 tons of carbon dioxide by 2030. With the bilateral agreement in place, we are now aiming to establish even more projects in Ghana.”

The bilateral agreement with Ghana is Sweden's first legally binding cooperation agreement for emissions trading under the Paris Agreement. Sweden also has Memoranda of Understanding with Nepal, the Dominican Republic and Switzerland.