What's Happening?
Morocco and Norway have formalized a Mitigation Outcome Purchase Agreement (MOPA) under Article 6.2 of the Paris Agreement. This agreement, facilitated by the Global Green Growth Institute’s (GGGI) Carbon Transaction Facility (CTF), was signed at the Morocco Pavilion
during the 31st United Nations Climate Change Conference (COP31) in Antalya, Türkiye. The MOPA outlines the purchase and transfer of up to 8.78 million Internationally Transferred Mitigation Outcomes (ITMOs) from Morocco to Norway between 2027 and 2036. A key component of this initiative is Morocco’s Generation-Based Incentive (GBI) Program, designed to offer performance-based incentives for new renewable energy and battery storage projects. This program aims to mobilize approximately 2 GW of additional renewable energy capacity, addressing economic and financing barriers. Payments under the MOPA are contingent on measured and independently verified results, with Morocco authorizing the corresponding transfers under Article 6.2.
Why It's Important?
This agreement signifies a crucial step in international climate cooperation, demonstrating how Article 6 of the Paris Agreement can be operationalized to mobilize climate finance and accelerate mitigation efforts. For Morocco, the GBI Program is expected to significantly advance its national climate targets, including exceeding 52% renewables in installed power capacity by 2030 and achieving a 53% reduction in greenhouse gas emissions by 2035 compared to business-as-usual. The partnership also reflects Morocco's progress in developing its carbon market framework, including Draft Law No. 62.25 on climate change and carbon market organization. For Norway, this MOPA supports its Global Emission Reduction (NOGER) Initiative and its NACA Fund, contributing to its climate commitments by acquiring verified emission reductions. The success of this model could serve as a blueprint for other developing economies seeking to scale up renewable energy and engage in international carbon markets.
What's Next?
Following the signing, Morocco and Norway will proceed with the implementation phase. This includes finalizing the GBI Rulebook, establishing robust monitoring, reporting, and verification (MRV) arrangements, and launching the program’s pilot phase. The first mitigation outcomes are anticipated to be generated from 2028. The partners aim to showcase how Article 6 cooperation can effectively mobilize climate finance, accelerate mitigation actions, and deliver tangible development benefits. This initiative is expected to provide valuable insights into the practical application of international carbon market mechanisms and their potential to drive global decarbonization efforts.
Beyond the Headlines
The Morocco-Norway MOPA highlights the evolving landscape of global carbon markets, particularly the role of Article 6 of the Paris Agreement in fostering high-integrity partnerships. The emphasis on independently verified results and performance-based incentives aims to address concerns about the credibility and effectiveness of carbon credits. This bilateral cooperation model could influence future international climate finance strategies, encouraging more direct and results-oriented investments in renewable energy infrastructure in developing countries. It also underscores the importance of robust national carbon market frameworks and the technical support provided by organizations like GGGI in facilitating such complex international transactions, ultimately contributing to a more integrated and effective global response to climate change.
