Switzerland and Norway have established the first long-term carbon removal agreement under Article 6.2.

Switzerland and Norway have reached a bilateral agreement to exchange durable carbon removal credits under Article 6.2, as announced in a joint press release on June 17. Although the volumes exchanged will be small, this is the first agreement focused on carbon dioxide removal credits under Article 6 of the Paris Agreement. Article 6 outlines the framework for global trading of greenhouse gas emission reductions, allowing cross-border credit exchanges under Article 6.2.

Close to 100 bilateral agreements have been signed under the latest Article 6 guidelines, with Sweden and Kenya also announcing an emissions trading deal on June 17. Norwegian Minister of Energy Terje Aasland described the agreement as a groundbreaking step that will test international cooperation on carbon capture and storage, highlighting Norway's extensive experience in CO2 storage.

The agreement aims to facilitate the world’s first international transfer of negative emissions in line with Article 6, allowing for CCS through subsea geological formations and technology that securely binds CO2. The pilots will consist of symbolic transfers of Norwegian bioenergy with carbon capture and storage (BECCS) to Swiss buyers and Swiss mineralization to Norwegian buyers. These small-volume pilot transfers (1,000-10,000 mtCO2 from Norway and 100-1,000 mtCO2 from Switzerland) are expected to begin in 2028-29, laying the groundwork for larger transfers in the 2030s.

Demand for tech-based carbon removal credits is increasing annually due to the growing voluntary carbon market, which is supported by its decarbonization benefits. Recent pricing for carbon removal credits from bioenergy with CCS has been reported between $150-$300/mtCO2e, while direct air capture credits range from $500-$1,000/mt, depending on contract specifics.