Pakistan–Norway Sign Article 6.2 Carbon Deal — Global Bilateral Count Hits 106
Pakistan's Ministry of Climate Change and Norway's government signed a bilateral carbon trading agreement under Article 6.2 of the Paris Agreement in early April 2026 — enabling Pakistan to sell ITMOs to Norway from renewable energy, agriculture, transport, and waste projects. The deal brings global Article 6.2 bilateral arrangements to 106.
The Pakistan–Norway Deal
The Memorandum of Understanding was signed in Islamabad under Pakistan's Federal Minister for Climate Change, Musadik Malik, and Norway's Ambassador Per Albert Ilsaas. The agreement enables Pakistan to develop carbon credit projects across four sectors — renewable energy, agriculture, transport, and waste management — and sell the resulting Internationally Transferred Mitigation Outcomes (ITMOs) to Norway.
Norway uses Article 6.2 bilateral agreements as a core strategy for meeting its own nationally determined contribution (NDC), financing emission reductions abroad where they can be achieved at lower cost while generating climate co-benefits in developing economies. Pakistan, with significant renewable energy potential and one of the world's largest agricultural sectors, offers substantial project pipeline opportunities.
The Broader Article 6 Pipeline
The Pakistan–Norway agreement is part of an accelerating global trend. Of the 106 total bilateral arrangements in place, 59 are Memoranda of Understanding and 40 are binding Bilateral Agreements. The remaining seven cover other cooperation frameworks. This growth reflects the post-COP29 momentum on Article 6 implementation, which delivered the long-awaited rulebook for both the bilateral (6.2) and centralised UN mechanism (6.4) tracks.
Under Article 6.4, which operates through a centralised UN mechanism, 1,122 prior consideration notifications have been submitted as of mid-March 2026 — 890 relating to individual project activities and 232 for programmes of activities. This signals a large latent supply pipeline beginning to formalise under the new framework.
Switzerland remains the most active bilateral Article 6.2 buyer, having signed 17 agreements to date including three new deals with Mongolia, Zambia, and Uganda at COP30 in Belém. Switzerland intends to offset a third of its domestic emissions through internationally transferred mitigation outcomes under this framework.
What This Means for Carbon Market Development
Each new Article 6.2 agreement unlocks new ITMO supply channels. For compliance buyers — including countries with ambitious NDCs and corporations operating under Article 6.4-eligible activities — the expanding network of bilateral agreements increases the diversity of tradable mitigation outcomes available. Pakistan's entry in particular signals that South Asian supply is now entering the Article 6 mainstream, alongside established markets in Africa, Latin America, and Southeast Asia.
Critically, Article 6.2 ITMOs carry corresponding adjustments — the host country formally reduces its own NDC target by the quantity of credits exported. This makes them fundamentally more robust than traditional voluntary carbon market credits for buyers seeking regulatory-grade offsets.
TrustVal helps corporate buyers and project developers navigate carbon markets with confidence. Talk to our team about Article 6 opportunities and ITMO procurement.
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Each new Article 6.2 bilateral agreement expands the ITMO market that TrustVal helps corporate clients and compliance buyers navigate. Pakistan's entry adds a significant South Asian supply channel with particularly strong potential in renewable energy and agricultural methane reduction. For buyers seeking corresponding-adjusted credits that satisfy the most demanding corporate net-zero standards, the growing Article 6.2 network is the right place to look — and TrustVal has the expertise to evaluate project quality and ITMO delivery risk within it.