Cooperation with Switzerland on global emissions trading with negative emissions

The cooperation builds on a memorandum of understanding signed at the UN climate change conference at COP28 in Dubai in 2023. The new understanding enables the countries to carry out a transfer of two tonnes carbon dioxide from a company in Switzerland to two companies in Sweden. The transfer is carried out to gather knowledge and lessons learned of how this part of the Paris Agreement works.

Carl Mikael Strauss, head of the industrial development unit at the Swedish Energy Agency, stated:

"Taking the next step in this cooperation sends a clear signal that international collaboration on carbon dioxide removal is not only possible, but also necessary to achieve the climate transition."

The cooperation also includes private sector actors

The transfer will take place between private sector actors. On the Swedish side, Max Burgers AB and ZeroMission AB are participating as buyers and will receive two credits from negative emissions achieved in Switzerland. The Swiss Climate Cent Foundation will be the seller.

Felix Wertli, Ambassador for the Environment at the Federal Office for the Environment in Switzerland, stated:

"Switzerland appreciates this partnership with Sweden. Together, Sweden and Switzerland start building the markets necessary for net-zero climate targets. It is a pioneering setting in which B2B transfers of carbon dioxide removal intend to be recognised by governments and per Paris Agreement."

Background

During COP28, Sweden and Switzerland agreed to explore the regulatory framework for international emissions trading for carbon dioxide removal (negative emissions), with a stated ambition to involve private sector actors. This initiated a pilot project where the countries have worked to analyse how trading under the rules of the Paris Agreement can be implemented in a robust and transparent manner with high environmental integrity. The new agreement marks the next step in the cooperation. A second phase is intended in the joint piloting, where carbon dioxide removals generated in Sweden may be transferred to Swiss buyers, if respective regulations allow.

Facts

• Emissions trading under the Paris Agreement enables international cooperation to combat climate change and unlock financial support for the climate transition. The activities underlying trading can take place in one country but be accounted for and/or reported in another country’s climate reporting to the UN. The objective is for international climate cooperation to increase ambition and contribute to faster and greater global climate benefits. The Swedish Energy Agency is mandated to represent Sweden in matters related to Article 6 and develop new international climate cooperation.
• Negative emissions are generated, for example, through the capture and geological storage of biogenic carbon dioxide (bio-CCS). Negative emissions will be crucial to balancing remaining emissions as the world reaches net-zero emissions and subsequently net-negative emissions.