Norway and Zambia Launch Clean Energy Carbon Deal

Norway and Zambia just launched a first-of-its-kind climate deal that pays African energy developers for every ton of carbon they keep out of the atmosphere. The partnership transforms renewable energy from a risky bet into a reliable investment.

The two countries signed a Mitigation Outcome Purchase Agreement in early 2025, creating the Carbon Feed-In Premium Program. Under this system, renewable energy projects in Zambia will receive performance-based payments for verified emissions reductions whenever they deliver clean electricity to the national grid.

The timing couldn't be better for Zambia. The country has historically relied on hydropower for 82% of its electricity, but prolonged droughts have forced an uncomfortable shift toward coal and diesel generation. Years of low electricity prices left the power sector starved for investment right when demand started climbing.

Minister of Green Economy and Environment Mike Mposha says the agreement addresses a critical gap. "By linking finance to verified results, we can accelerate renewable energy delivery that strengthens our energy security and advances our climate goals," he explained.

The program works by reducing the biggest fear that holds back clean energy developers: uncertainty. Investors now know they'll get paid for measurable results, not just promises. Every kilowatt-hour of solar or wind power that reaches Zambian homes and businesses generates both electricity and verified carbon credits that Norway purchases.

Norway's Climate and Environment Minister Andreas Bjelland Eriksen emphasized the partnership's integrity. "Partnerships like this can help accelerate the green transition while maintaining high standards of transparency and integrity," he noted.

The deal follows years of preparation. Zambia worked with the Supporting Preparedness for Article 6 Cooperation project to build its Carbon Market Framework and calculate the specific emission factor for its power sector. These technical foundations ensure that every carbon credit represents real, verifiable emissions reductions with no double-counting.

The Ripple Effect

This partnership could reshape how the world funds clean energy in developing countries. By proving that results-based climate finance works at scale, Zambia and Norway are creating a model other nations can follow. The approach tackles two problems at once: it helps countries meet their climate commitments while channeling investment toward communities that need reliable electricity.

The agreement also demonstrates how Article 6 of the Paris Agreement can move from paper to practice. These international cooperation rules, finalized at recent climate conferences, create frameworks that help ensure transparency and environmental integrity in carbon markets.

Zambia, Norway, and the Global Green Growth Institute are now finalizing implementation details to begin delivering emission reductions. The program aims to generate measurable benefits for Zambia's electricity grid, its communities, and global climate action, proving that climate finance can work when it rewards real results.