New studies highlight private sector role in the international carbon markets

Nordic countries and companies are taking the lead in climate action, with new research showing how international carbon markets can help bridge the gap between ambition and achievement.

Nefco has published two new studies that reveal how Nordic countries and companies are ready to accelerate climate action through international carbon markets under Article 6 of the Paris Agreement.  

The reports, Nordic Private Sector Interest in Paris Agreement Article 6 Implementation and Exploring Carbon Credit Utilization in the Nordics, provide the most comprehensive assessment to date of Nordic ambitions, market opportunities, and strategic challenges for both governments and businesses. 

Commissioned by Nefco under the Nordic Initiative for Cooperative Approaches (NICA) programme, and carried out by Carbon Limits, the studies and their key findings were published at the end of October 2025 at a joint event organised in Oslo and online by Nefco, NICA and the Climate Leadership Coalition, a leading non-profit climate business network. 

Pasi Rinne, Chair of NICA and Senior Adviser to Nefco highlighted: “The studies show that the Nordic private sector recognises the value of long-term commitment to the Paris Agreement targets. It invests in carbon emission mitigation, brings highly relevant technologies and data management solutions for effective climate action, and is strongly committed to participating in global climate efforts.” 

Kari Hämekoski, Senior Programme Manager at Nefco commented: “Nordic collaboration between the private and public sectors is essential for accelerating climate action. Nefco, through initiatives such as NICA, can add significant value by fostering partnerships, sharing expertise, and creating innovative solutions that strengthen our collective impact.” 

Key findings from the studies

• Nordic countries set the pace: Denmark, Finland, Iceland, Norway, and Sweden have some of the world’s most ambitious climate targets, but domestic action alone may not suffice. International cooperation via Article 6 offers a strategic opportunity to bridge the gap. 

• Significant demand for carbon credits: Nordic demand for Internationally Transferred Mitigation Outcomes (ITMOs) could reach 14–72 million tonnes CO₂e between 2036 and 2049*, depending on policy scenarios (*based on the gap in the national climate targets; not including potential demand of the private sector). 

• Private sector as a driver: Nordic companies are increasingly integrating Article 6 into their climate strategies, prioritising high-integrity credits and engaging in pilot projects. Demand is expected to grow, especially if compliance frameworks evolve. 

• Cost-effective climate action: ITMOs could help Nordic governments and companies achieve climate goals more efficiently, with notable projected savings compared to domestic abatement costs. 

• Barriers and enablers: Regulatory clarity, close collaboration with the Governments, harmonised Nordic/EU guidance, robust market infrastructure, and financial incentives are critical for scaling up private sector participation. 

Read and download the reports 

• Exploring Carbon Credit Utilization in the Nordics 

• Nordic Private Sector Interest in Paris Agreement Article 6 Implementation 

About NICA 

Since 2018, the Nordic Initiative for Cooperative Approaches (NICA) has promoted a common vision, priorities and goals for Nordic Article 6 cooperation and operationalisation. NICA provides targeted capacity building and through NICA, Nordic countries can participate in Article 6 information sharing, dialogue, and possible piloting. NICA has been funded since inception by Sweden, Norway, Finland, the Nordic Council of Ministers, and Nefco. All Nordic countries have participated in the NICA discussions. www.nefco.int/NICA  

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