Zambia and Switzerland have formally initiated a bilateral climate agreement designed to accelerate greenhouse gas mitigation and unlock private climate finance through international carbon markets, marking another step in Africa’s evolving engagement with Article 6 of the Paris Agreement.
The agreement was recently inaugurated by Zambia’s Ministry of Green Economy and Environment (MGEE) and the Embassy of Switzerland to Zimbabwe, Zambia and Malawi, with technical backing from the SPAR6C programme funded by Germany’s International Climate Initiative. It was originally signed in November 2025 on the margins of COP30 in Belém, Brazil.
Structured under Article 6.2 of the Paris Agreement, the framework enables voluntary cooperation between the two countries through the transfer of Internationally Transferred Mitigation Outcomes (ITMOs). In practice, this allows Zambia to host high-quality emissions-reduction projects financed by international capital, while Switzerland can count verified carbon credits toward its climate commitments.
The deal comes as Zambia positions itself as a serious participant in global carbon markets. It is the country’s third bilateral Article 6 agreement in just two years, reflecting growing international confidence in its carbon governance systems and its ability to deliver mitigation outcomes beyond its Nationally Determined Contribution (NDC) under the UNFCCC.
At the centre of implementation is the KliK Foundation, which operates under Switzerland’s CO₂ Act. The foundation is mandated to identify, finance and purchase credits from mitigation projects in Zambia that are additional to national climate targets. By providing results-based financing, KliK aims to make large-scale projects commercially viable while ensuring environmental integrity and social safeguards.
Beyond emissions reductions, the projects are expected to generate local co-benefits, including job creation, improved energy access, and stronger community resilience. For Zambia, where climate variability and recurring droughts threaten hydropower generation and food systems, carbon finance offers a pathway to invest in renewable energy, reforestation and climate-smart agriculture.
According to the World Bank, Zambia faces an investment gap of more than $2 billion in its energy sector alone to secure a low-carbon and climate-resilient transition. Leveraging international carbon markets could help bridge that gap while reducing reliance on traditional concessional aid.
Switzerland’s engagement also reflects a broader shift in European climate strategy. As conventional development assistance is gradually phased down, countries like Switzerland are increasingly turning to market-based mechanisms to deliver measurable emissions reductions abroad. Swiss Ambassador to Zimbabwe, Zambia and Malawi, H.E. Stéphane Rey, said the agreement prioritises environmental integrity, human rights and alignment with the Sustainable Development Goals.
Technical support for the agreement is being delivered through the SPAR6C programme, implemented by the Global Green Growth Institute in partnership with GFA Consulting Group and the UNEP Copenhagen Climate Centre. The programme focuses on strengthening national systems for carbon accounting, project approval and verification—capabilities seen as essential for African countries seeking to scale participation in voluntary carbon markets.
With analysts estimating that Africa could generate up to $20 billion annually from carbon markets by 2030 under robust regulatory frameworks, Zambia’s approach is being closely watched. By tying international finance to verified, results-based mitigation projects, the country is emerging as a potential model for how carbon markets can support both climate action and sustainable development on the continent.
