Zambia–Norway Carbon Deal to Unlock USD 420m for Renewable Energy Projects
The Government of Zambia, through the Ministry of Green Economy and Environment, has launched a new Carbon Feed-In Premium Programme (CFIP) aimed at accelerating investment in clean energy and strengthening electricity supply across the country.
Announced on 1st April 2026, the programme is expected to unlock approximately USD 420 million in investments for grid-connected renewable energy projects, with a strong focus on solar power supported by battery energy storage systems.
The CFIP is designed as a results-based carbon finance mechanism that will provide additional financial incentives for verified greenhouse gas emission reductions. It will operate as a tariff top-up to improve the viability of renewable energy projects where existing power purchase agreements are insufficient to attract investment.
The initial phase targets the development of 300 megawatts of solar photovoltaic capacity, aligned with Zambia’s national energy priorities. The programme is also expected to enhance grid stability by enabling renewable energy supply during peak and evening demand periods.
Officials say the initiative is intended to address long-standing challenges in the energy sector, including limited bankability of off-taker arrangements and investor concerns over returns in the independent power producer market.
To support implementation, Zambia and the Kingdom of Norway have concluded a Mitigation Outcome Purchase Agreement (MOPA), expected to contribute between USD 80 million and USD 200 million in carbon finance. The agreement will enable the trading of internationally transferred mitigation outcomes under Article 6 of the Paris Agreement.
The Ministry of Green Economy and Environment said the CFIP will go beyond individual projects by supporting a broader, policy-driven transformation of the energy sector, with emphasis on climate action, private sector participation and sustainable development outcomes.
Participation in the programme is voluntary, with eligibility extended to independent power producers and ZESCO-linked projects that meet technical, financial and geographic requirements.
The Call for Proposals remains open until 31st May 2026, with the Ministry inviting qualified developers to submit applications through its official website.
