Nordic Initiative for Cooperative Approaches

International market-based collaboration to build capacity and foster partnerships among Nordic public and private actors

International partnerships to accelerate climate action

The Nordic Initiative for Cooperative Approaches (NICA) supports the implementation of international market-based collaboration under Article 6 of the Paris Agreement. It also monitors developments in the Voluntary Carbon Markets and their interaction with Paris Agreement mechanisms.

The focus of the initiative

NICA focuses on supporting the implementation of the Paris Agreement, with particular emphasis on operationalising international market-based collaboration under Article 6.

NICA aims to demonstrate how voluntary international cooperation can:

Enhance climate ambition
Accelerate climate action
Promote sustainable development
Enable private sector participation

What we do

We build capacity and foster partnerships between Nordic public and private actors and their global peers, ensuring all collaboration aligns with the Paris Agreement. NICA aims to support, scale up, and accelerate ambitious climate action, promote sustainable development and harness private sector finance and innovation.

How we work

NICA facilitates partnerships that deliver lasting mitigation outcomes, raise climate ambition, and support sustainable development with private sector engagement. Our work contributes to shaping robust international rules for transferring mitigation outcomes, ensuring that market-based cooperation supports the goals of the Paris Agreement.

Current activities

Supporting Article 6 pilots

NICA is actively mapping and screening feasible opportunities to pilot Article 6 of the Paris Agreement in various countries. These efforts aim to support the implementation of carbon market mechanisms while fostering collaboration with the Voluntary Carbon Markets.

A Nordic platform for knowledge sharing

NICA also functions as a Nordic platform, facilitating information exchange among Nordic actors. As the Nordic countries pursue various bilateral and national carbon market initiatives, NICA helps ensure alignment and shared learning across the region.

Key activities

NICA’s current work includes:

Developing core documentation for potential Article 6 transactions in collaboration with stakeholders
Publishing a summary report on NICA activities
Producing a Fact Sheet outlining the Nordic approach
Organising and participating in workshops and international events

Report: Linkages between Article 6 of the Paris Agreement and Voluntary Carbon Markets

This report presents both the opportunities and challenges from the relationship between Article 6 and voluntary carbon markets (VCMs), offering a Nordic perspective on potential pathways to maximise the synergies.

Nefco and Finland of Chamber of Commerce event about Article 6 and carbon markets on 25 October 2023 in Helsinki, Finland

The market mechanisms included in the Paris Agreement could provide ways for the private sector to participate in global climate action and utilise the carbon markets. The Finland Chamber of Commerce and Nefco gathered experts to discuss and exchange views from the Finnish perspective.

Nordic leadership in climate action

The Nordic countries have a strong track record in supporting ambitious climate action and sustainable development in developing countries as well as promoting carbon pricing globally.

Through NICA, the Nordic countries continue to:

Join forces to facilitate international partnerships
Engage with the international carbon pricing community
Promote knowledge sharing, coordination, and collaboration

Building on Nordic experience

NICA builds on the Nordic region’s extensive experience with the Kyoto Protocol’s flexible mechanisms, including the Clean Development Mechanism (CDM) and Joint Implementation (JI). These foundations provide a strong basis for advancing new forms of collaboration under the Paris Agreement.

In addition, the initiative reinforces Nefco’s role as a key player in international carbon markets, supporting its continued leadership in climate finance and market-based solutions.

Our origins

NICA was jointly developed by Finland, Norway, Sweden, and Nefco. It builds on the legacy of the Nordic Partnership Initiative, while adapting to major developments in international climate policy, including the Paris Agreement and Nationally Determined Contributions (NDCs).

About carbon market mechanisms

Carbon markets are mechanisms that enable governments and non-state actors to trade greenhouse gas emission credits through carbon pricing.

Since 2003, Nefco has established and managed several groundbreaking carbon funds that have provided a pioneering testing ground for innovative, market-based approaches.

Report: Linkages between Article 6 of the Paris Agreement and Voluntary Carbon Markets (June 2025)
Presentation: EU and carbon markets – Kenneth Möllersten, IVL Swedish Environmental Research Institute (NICA steering group meeting 30 January 2025)
Fact sheet: Nordic approach for carbon market cooperation (October 2022)
Summary report of pilot activity development for Nordic Initiative for Cooperative Approaches (NICA) (July 2022)
Events where Nefco participated at COP27 (November 2022)
Key takeaways and highlights from Nefco organised events at COP26 (December 2021)
Event: Nordic approaches to support global carbon market cooperation, organised in connection to COP26 (November 2021)

Publications on Article 6 Cooperation

International Emissions Trading Association’s (IETA) report: Modelling the Economic Benefits of Article 6
Supporting Preparedness for Article 6 Cooperation’s (SPAR6C) toolbox: SPAR6C Toolbox – your compass to navigate Article 6
Report for the Swedish Energy Agency: Using International Carbon Credits to Achieve National Mitigation Targets of EU Member States – Options for Accounting under Article 6 of the Paris Agreement
IETA resources on carbon markets, such as Emissions Trading 101 Library: IETA Resources
Global Green Growth Institute’s (GGGI) reports: GGGI Library – Publications and Graphics (choose the thematic area: “Carbon Trading”)
The World Bank’s Article 6 Approach Paper Series and yearly reports on State and Trends of Carbon Pricing, as well as other pertinent publications: World Bank Group Open Knowledge Repository – Article 6
Swedish Energy Agency’s overview of partnerships under the Paris Agreement
Finnish Government’s guide to good practices for voluntary carbon market
The Norwegian Carbon Credit Procurement Program (The Norwegian Ministry of Climate and Environment)

Contributors

The NICA initiative has been funded by Finland, Norway, Sweden, the Nordic Council of Ministers’ Working Group for Climate and Air, and Nefco. Iceland is involved in NICA collaboration and Denmark also participates in NICA discussions.