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Baku, Azerbaijan – November 19th, 2024 – During the 29th UN Conference on Climate Change Conference of the Parties (COP29), Norway unveiled the opening of its new Article 6-aligned carbon fund under the Global Green Growth Institute’s (GGGI) Carbon Transaction Facility (CTF) as part of its new international effort: the Norwegian Global Emission Reduction (NOGER) Initiative. The Norwegian Article 6 Climate Action (NACA) fund was inked on 16^th November 2024. Through the Fund, Norway pledges up to USD 100 million focused on the purchase of Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6. This represents the largest single pledge to date focused on Article 6 aligned carbon trading…………………….

The CTF was officially inaugurated on October 16, 2024, during GGGI’s Global Green Growth Week 2024, and serves as the newest vehicle through which GGGI will support its Member States and partner countries in participating in international carbon markets under Article 6 of the Paris Agreement. Carbon markets create an additional revenue stream for emission reduction and removal activities that complement traditional climate finance and enable investment in transformative climate action and green growth.

The CTF is organized into two pillars: the Article 6 Readiness Facility on one side, and a collection of carbon funds dedicated to purchasing emission credits under the Article 6 framework on the other. The Readiness Facility assists GGGI’s Member States and partner countries in ensuring they have the necessary policies, procedures, and capacities to fully engage in these new markets. The carbon funds, on the other hand, support the implementation of transactions.

Norway, a member of the Article 6 Readiness Facility since September 30, 2024, officially established its ‘Norwegian Article 6 Climate Action’ fund or NACA fund, with a pledge of up to USD 100 million. This announcement stems from the new initiative launched by Norway at COP29: the Norwegian Global Emission Reduction (NOGER) initiative.

“Choosing green solutions is expensive, and many countries lack financing. We know we need to do more. By supporting renewable energy projects and other mitigation measures in developing countries, we reduce global emissions and raise ambitions,” said Norwegian Minister of Climate and Environment Tore O. Sandvik.

In light of the urgency of the climate crisis, the Norwegian Ministry of Climate and Environment and GGGI continue to also advance and on-the-ground climate cooperation. Through the NOGER initiative, Norway has concluded three bilateral agreements with GGGI Member States and partner countries, advancing the conclusion of Article 6 transactions with Benin, Senegal, and Zambia.

“GGGI is delighted to continue this strong collaboration with the Norwegian Ministry of Climate and Environment, from the Designing Policy Approaches under Article 6 program to the CTF with this new carbon fund. Together, Norway and GGGI have been at the forefront of Article 6 readiness support, and now the implementation of transactions.” added Helena McLeod, Acting Director-General of the Global Green Growth Institute.

Fenella Aouane, Head of Carbon Pricing at GGGI, said “Norway’s pledge to the CTF is a major step in opening global carbon markets. With the new NACA fund, the CTF is getting closer to its ambition of catalyzing $500 million for Article 6 transactions. We are looking forward to implementing transformative opportunities for green growth—one trade at a time.”

The Carbon Transaction Facility continues to expand, now with USD 20 million Readiness Facility, funding initial technical assistance and capacity building projects in Rwanda and Sri Lanka, as well as two carbon funds:

• The ACCTIF fund, opened by the Swedish Energy Agency, hosting USD 28.5 million.
• The NACA fund, opened by the Norwegian Ministry of Climate and Environment, hosting up to USD 100 million.

To stay updated on the development of the Carbon Transaction Facility, please visit our webpage at https://gggi.org/ctf

About the Global Green Growth Institute

Based in Seoul, GGGI is a treaty-based international, inter-governmental organization with 48 Members and over 28 countries and regional integration organization(s) in the process of accession – dedicated to supporting and promoting strong, inclusive, and sustainable economic growth in developing countries and emerging economies. With operations in over 51 countries, GGGI serves the role of an enabler and facilitator of Members’ transition into a low-carbon green economy, providing policy advice and technical support in the development of green growth plans, policies and regulations, mobilization of green investments, implementation of green growth projects, and development of local capacities and knowledge sharing. Further information on GGGI’s events, projects and publications can be found on gggi.org

About the Carbon Transaction Facility

The Carbon Transaction Facility (CTF) is GGGI’s initiative for opening international carbon trading under Article 6 of the Paris Agreement. The CTF consists of two main components: a multi-donor fund, known as the Article 6 Readiness Facility, and a collection of single-donor carbon funds dedicated to Article 6 transactions. The Article 6 Readiness Facility provides essential support to GGGI Member States and partner countries by developing governance frameworks, originating mitigation activities, promoting knowledge sharing, and building capacity for effective engagement with Article 6-aligned carbon markets. The carbon funds catalyze Article 6 transactions by establishing direct agreements with activity proponents, ensuring transparency, credit delivery, and timely payments. For more information, please visit gggi.org/ctf.

Contacts

Mona Laczo
Head of Communications and Knowledge Sharing
mona.laczo@gggi.org

Benjamin Devise
Carbon Pricing Associate
benjamin.devise@gggi.org