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Nordic countries want to take the carbon market to the next level

The current global carbon market could be improved by a new Nordic initiative going beyond single emission reduction projects to include broader segments of the economy. The project could help make global carbon trading more efficient and introduce new mechanisms into the ongoing global climate negotiations.

Mar 25, 2011

- The Nordic Scaled Up Mitigation Initiative could help make the whole NAMAs process, and by implication global carbon trading, more effective, says Swedish climate expert Olle Björk.


The project was initially presented by the Nordic working group on global climate negotiations and Nordic Environment Financing Corporation (NEFCO) at COP16 in Cancun and drew a good deal of attention there.

A feasibility study has been initiated, involving potential partner countries in Asia and South America. The first report is expected in June and pending further financing from the Nordic governments the project could be initiated before COP17 in Durban next December.

In the current carbon trade system - the Clean Development Mechanism (CDM) under the Kyoto Protocol - emission credits are issued for single projects or programmes in developing countries.

The new initiative – the Nordic Scaled Up Mitigation Initiative – intends to prepare the ground for up-scaling the entire process in order to simplify the procedures, increase the volumes and create net benefits to the atmosphere.

Instead of a simply off-setting the emissions from developed countries – as is often the case in the conventional CDM – net atmospheric benefits could be secured through the combination of carbon trade to voluntary domestic policy measures in developing countries.

The background for the initiative are the so called Nationally Appropriate Mitigation Actions (NAMAs) in the developing countries, introduced at the Bali climate negotiations in 2007 and included in the climate negotiation sand decision texts since then.

"net atmospheric benefits could be secured through the combination of carbon trade to voluntary domestic policy measures in developing countries The process to define these NAMAs has so far been fraught with difficulty. The Nordic Scaled Up Mitigation Initiative aims at successful practical action to implement NAMAs on the ground and contributes to gathering real-life experience from marked based NAMAs."

By linking the proposed sector based mitigation programme to the NAMA’s, the ensuing carbon trade of the industrialised countries’ in developing countries could also generate a more genuine link to development aid and better coherence with national strategies.

- The Nordic Scaled Up Mitigation Initiative could help make the whole NAMAs process, and by implication global carbon trading, more effective. A major part of our project is to document and build up knowledge on how this can work on a sector to sector basis, to create new instruments that can be used worldwide, says Swedish climate expert Olle Björk.

Björk is long time chair of the Nordic ad hoc group on climate negotiations – a group of government officials from all five Nordic countries – that stands behind the new initiative along with the Nordic Environment Financing Corporation under the Nordic Council of Ministers.

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