Peru and Switzerland sign first sale agreement for credits generated under Paris Agreement's Article 6
GENEVA – The governments of Peru and Switzerland today signed the first agreement between Parties to the Paris Agreement for the sale of emission reductions generated under Article 6 of the agreement. IETA congratulates Peru and Switzerland for reaching this important milestone of a cooperative model within the emerging Article 6 framework.
“This agreement may represent a modest beginning, but it sets the stage for greater cooperation in the future and most importantly, represents real action on the ground in support of Article 6,” said Stefano DeClara, IETA’s international policy director.
More about the agreement:
- The Klik Foundation, which will act on behalf of the Swiss government, said Switzerland intends to reduce up to 12.5 percent of its emissions by financing climate protection projects abroad.
- Under Swiss law, Klik is mandated to purchase around 35 million tonnes of reductions for this period.
- Klik notes that while the mitigation takes place in Peru, both countries will issue certificates and account for the emissions reductions at national level, avoiding double-counting.
- The agreement also sets out parameters for the environmental integrity and sustainable development attributes of the reductions.
- The agreement gives the Swiss government the option to transfer the rights to retire the offsets to local government or to private companies headquartered in Switzerland. The reductions will not be traded outside Switzerland.
20 October 2020