Switzerland agrees to buy Article 6.2 carbon credits from Ukraine

4 Jul 2022

Quantum Commodity Intelligence - Switzerland has agreed to buy carbon credits from Ukraine under Article 6.2 of the Paris climate change agreement, thus adding to the list of seven countries it has already signed deals with, it announced Monday.

Leaders from dozens of countries and international organisations are currently meeting in Lugano, Switzerland, to discuss a plan to rebuild Ukraine, which has been ravaged by war with Russia.

Analysts estimate the cost of the war at $1 trillion if it lasts until the end of the year.

Switz­erland's Federal Councillor Simo­netta Somma­ruga and Ukrai­nian Deputy Minister of Envi­ron­mental Protection and Natural Resources Ruslan Strilets signed the agreement at the event on Monday.

"The coope­ra­tion agreement with the Ukraine contri­butes to the envi­ron­men­tally sustainable recon­struction in this country and sets a sign of soli­da­rity," said the KliK foundation.

Switzerland has alrea­dy signed similar deals with Domi­nica, Georgia, Ghana, Peru, Senegal, Vanuatu and Thailand.

In some cases, such as Peru and Thailand, credits from specific projects have already been pledged.

In November 2021, at COP26, the UN approved rules on how a future carbon market may work, passing so-called Article 6, which establishes the rulebook for carbon trading under the Paris Agreement to ensure, among other things, there is no double-counting of credits during trade.

Article 6.2 allows countries to trade emission reductions and removals through bilateral or multilateral agreements.