Kenya has taken another step towards cementing its position as Africa's carbon market frontrunner after signing a Statement of Intent with Norway to negotiate a bilateral carbon trading agreement under Article 6.2 of the Paris Agreement.
The agreement was signed in Oslo by Prime Cabinet Secretary Musalia Mudavadi and Norway's Foreign Minister Espen Barth Eide, in the presence of President William Ruto and Norwegian Prime Minister Jonas Gahr Støre. While not yet a binding carbon trading deal, the Statement of Intent opens the door for negotiations on how the two countries could exchange internationally transferred carbon credits under the UN climate framework.
The move comes at a pivotal moment for Kenya's carbon market ambitions. Just days earlier, Kenya announced plans to cap Article 6 carbon credit transfers at 10 million tonnes through 2030, signalling a more strategic approach to managing the country's growing carbon assets. Kenya also launched its National Carbon Registry earlier this year, a key piece of infrastructure designed to track, verify and authorise international carbon credit transactions.
Taken together, the developments suggest Kenya is moving beyond simply hosting carbon projects and is positioning itself as a serious player in the emerging market for Article 6 carbon trades.
Article 6.2 allows countries to exchange emissions reductions, known as Internationally Transferred Mitigation Outcomes (ITMOs), which can be used by another country towards its climate targets or by airlines participating in the International Civil Aviation Organisation's CORSIA scheme. For countries with strong renewable energy resources and large nature-based carbon potential, the mechanism is increasingly being viewed as a new channel for climate finance and foreign investment.
For Kenya, the attraction is straightforward. A bilateral agreement with Norway could expand the pool of buyers for carbon credits generated within the country, unlock new climate finance and attract private capital into renewable energy, clean cooking, sustainable agriculture and other low-carbon sectors. Government officials also see Article 6 as a pathway for job creation and accelerated green industrial development.
Norway brings significant financial firepower to the table. Through its NOGER initiative, the Scandinavian nation has committed more than NOK15 billion to support emissions reduction projects in developing economies. The programme focuses on mobilising investment into renewable energy, supporting energy transitions and generating measurable, independently verified emissions reductions. Norway has already signed similar agreements with countries including Benin, Senegal, Jordan and Zambia.
The latest announcement also reinforces Kenya's growing network of carbon market partnerships. Nairobi has already concluded Article 6 agreements with Switzerland and Sweden and is exploring similar arrangements with Singapore and South Korea. As competition intensifies among countries seeking high-quality carbon credits, Kenya's combination of renewable energy resources, restoration projects and maturing regulatory framework is attracting increasing international attention.
Yet the significance of the Norway deal extends beyond carbon credits. It reflects a broader shift in how climate cooperation between developed and developing countries is evolving. Rather than traditional donor-recipient relationships, Article 6 agreements are increasingly being framed as economic partnerships built around investment, emissions reductions and shared climate objectives.
Negotiations on a full bilateral agreement are expected to begin in the coming months. If successful, the deal would further strengthen Kenya's position as one of the most active Article 6 jurisdictions in Africa and provide another signal that international demand for high-integrity carbon credits remains strong despite ongoing scrutiny of global carbon markets.
For Kenya, the message is becoming increasingly clear: carbon markets are no longer a side conversation in climate policy. They are emerging as a central pillar of the country's green growth strategy.
