Business and consumer power delivering positive climate action.

The World’s First Paris Agreement Carbon Offset Deal has been signed by Switzerland and Peru

Share this article on your social networks.

This agreement took 3 years to negotiate and it sees Peru get finance for sustainable development projects whilst Switzerland is able to take credit for the emission cuts. 

Switzerland has negotiated a carbon offsetting agreement with Peru, which both countries call the first deal of its kind under Article 6 of the Paris Agreement.

Whilst negotiations at UN climate talks on a global carbon market have stalled due to massive schisms, a framework does exist for nations to strike bilateral agreements. 

The signed deal enables Peru to fund sustainable development projects, whilst Switzerland here to record the resulting emissions cuts against its national targets.

Kirla Echegarry, Peru’s Environmental Minister stated negotiations on the deal took 2 years and were “an example of how cooperation between countries can facilitate the fulfilment of our climate goals and —at the same time— bring prosperity as well as well-being for our citizens.”

Gilles Dufrasne, policy officer at Carbon Market Watch, stated that the agreement had “several good elements” and established principles that “could form a basis for the ongoing article 6 negotiations”. He also praised the provision that ensured double counting wasn’t possible, ensuring that Switzerland and Peru could not claim credit for the same emissions reductions.

Conversely, Dufrasne stated, “What we’re still missing is a system to go beyond the zero-sum nature of offsetting.” This means that rather than a system that moves around pollution, one that reduces overall pollution should be created. Additionally, a grievance mechanism was necessary to ensure that any stakeholder could complain about a project. He added that “this has been missing in international carbon markets until now,”.

The agreement provides the Swiss government with the option to transfer the offsetting rights to either the local government or to private companies headquartered in Switzerland.

These projects will be financed by Swiss motor fuel importers, and in practice, these costs can be passed on to customers, who are then charged a fee when buying fuel for their vehicles. Transport actually accounts for about a third of the rich nation’s emissions.

The transactions are to be managed by the Swiss created Klik Foundation, which was created to discover 35 to 54 million tonnes worth of carbon offsets by 2030. The Peruvian and Swiss governments will determine what activities are eligible to create carbon credits.

Klik’s international co-head Mischa Classen stated that the foundation is considering creating initiatives such as a $50 million green credit line for small and medium-sized enterprises to invest in electric buses and energy efficiency. Classen also stated that the Swiss government had ruled out nuclear power investment and that “they don’t want to refurbish coal power – not to prolong the business case of coal, oil and gas”.

He said that the Swiss government was in talks with several other countries that could sign a similar agreement to Peru. “The next in line,” he said was Ghana and talks are ongoing with Senegal, Morocco, Thailand, Mexico, Chile and Argentina. “These processes are not always straightforward” though, he warned. 

2015 saw Switzerland pledge to reduce its greenhouse gas emissions by 50% between 1990 and 2030. It aims to achieve this goal with a quarter of the reductions coming via international offsets.

Counting offsets towards reduction targets is seen as controversial. And while countries such as Canada, Norway and Switzerland have indicated they plan to use them, others such as Finland and the UK have said they will not. As reported by Climate Home News

Related Posts

BreakingBoundaries
The most important scientific discovery of our time: NetFlix

Netflix states that the film, just released, centres around David Attenborough and Swedish Professor Johan Rockström’s research and records “the most important scientific discovery of our time.

Read More
climaterulings
4 Massive Climate Rulings Prove that Big Oil, Gas & Coal Are Running Out Of Hiding Places

3 global fossil fuel giants have been on the end of embarrassing rebukes over their inaction or inadequate action on …

Read More
net_zero_carbon
New IEA report gives meaning to Net Zero – five key insights

The IEA has released its long-awaited roadmap highlighting how the globe’s energy sector could slash its planet-heating emissions to net zero in 30 years

Read More
Methane emissions
Lowering Methane Emissions Is The Fastest Way To Slow Global Heating- UN Report

The new UN report discovered that methane emissions can be halved by 2030 with existing technology and at a reasonable cost. A large proportion of the actions involved will actually make money

Read More
netzero
Increasing Climate Change Promises are Moving the Needle

Recent and increasing promises concerning climate change made by major countries could bring the earth a fraction closer to the possibility of a more stable climate.

Read More
yosemite
Shocking results for nature’s climate change resilience – Retracing a century old wild life survey

When Berkely researchers following in the steps of Joseph Grinnell, a biologist who over a century ago developed a pioneering …

Read More
ironmanvsclimatechange
Tech billionaires’ Ironman approach to climate change vs. planting trees

3 of the 5 richest individuals in the world, are all aiming to create new technologies which can lower the world’s carbon emissions and fight climate change. What are the options?

Read More
climateaction 100plus
World First Net Zero Company Benchmark of the World’s Largest Corporate Emitters

Climate Action 100+, a $54 trillion investor coalition, released a report that evaluated several companies’ climate change performance.

Read More
why do we need to conserve resources
74% of Economists Says Net Zero Actions are Economically Desirable

The majority of the international climate economists polled in February stated they had become increasingly concerned about climate change over the past 5 years

Read More