Berlin, 6 May (Argus) — Morocco and Norway on Tuesday signed a bilateral agreement on co-operating under Article 6.2 of the Paris Agreement, through which Norway will provide financial support to greenhouse gas (GHG) emissions reductions in Morocco’s power sector.
The activities will generate so-called internationally transferred mitigation outcomes (Itmos) under Article 6.2, which will be counted against Norway’s nationally determined contribution (NDC) — climate plan — under the Paris deal, and after a few years also Morocco’s, Norway’s climate and environment ministry said.
Under the agreement, Norway will help finance about 2GW of renewable power capacity, including battery systems, in 2026-36 under a generation-based incentive programme, Morocco’s ministry of energy transition and sustainable development said. This provides projects with performance-based payments for every energy unit generated, as opposed to covering initial capital costs.
The programme focuses on relatively complex or less profitable renewable energy projects requiring additional financial support through carbon market mechanisms. This “additionality” is a key criterion under Article 6.
The initiative is expected to reduce up to 10mn t of CO2 equivalent (CO2e) by 2030, while also providing other benefits such as promoting technology transfer and creating job opportunities.
Norway has signed seven other Article 6.2 co-operation agreements, including one with Switzerland on cross-border transport and storage of carbon.
Morocco has also signed bilateral agreements under Article 6.2 with Switzerland and Singapore.
By Chloe Jardine
