Sweden and Kenya Formalize Emissions Trading Partnership under Paris Agreement

Sweden and Kenya have formalized a partnership for emissions trading under the Paris Agreement, marking an important step in international climate cooperation.

Key Points

  • • Sweden and Kenya signed a cooperation agreement on emissions trading under the Paris Agreement.
  • • This is Sweden's fourth binding commitment in emissions trading, following agreements with three other countries.
  • • Kenya's ambitious climate goals require financial support from Sweden to enhance its climate transition.
  • • International organizations like UNDP and GGGI will collaborate on projects to reduce emissions in Kenya.

On June 17, 2025, Sweden and Kenya signed a landmark agreement to collaborate on emissions trading as part of the efforts under the Paris Agreement. This partnership aims to enhance both nations' commitments to combat climate change and achieve their respective climate goals. The signing ceremony, attended by key figures including Caroline Asserup, acting director general of Sweden's Energimyndigheten (Swedish Energy Agency), and Caroline Vicini, Sweden's ambassador to Kenya, reflects the culmination of discussions initiated in early 2024.

Sweden is now bound by four agreements related to emissions trading under the Paris Agreement, having previously partnered with Ghana, Zambia, and Nepal. As highlighted by Sara Sundberg, acting head of the Climate Department at Energimyndigheten, this agreement opens doors for innovative financing through Article 6 of the Paris Agreement, allowing Sweden to support climate mitigation efforts beyond its borders.

Kenya, which has experienced rapid population growth and an increase in greenhouse gas emissions, set ambitious climate goals aiming to reform its energy sector and attract investments in emissions reduction. Ambassador Vicini remarked on Kenya's long-standing relationship with Sweden, emphasizing the potential role of Sweden in facilitating financial assistance necessary for Kenya's climate transition.

The partnership will also engage with established international organizations like the UN Development Program (UNDP) and the Global Green Growth Institute (GGGI) to ensure the success of the initiatives. The overarching objective is to promote significant and rapid reductions in global emissions, with benefits from the investments being transferable across nations to support their climate commitments.