Mozambique is currently preparing two large-scale hydropower plants which will serve the needs of its domestic demand for green electricity and those of neighboring countries. The hydropower plants are essential for Mozambique’s energy transition, its climate ambitions and its overall development.
Through the estimation and calculation of the carbon emission reduction potential under Article 6 of the Paris Agreement, Mozambique will be able to raise significant additional climate finance that will be needed to fund the upcoming hydropower plants. The Project Office of the Mphanda Nkuwa Hydro Project, in close coordination with the Ministry of Economy and Finance and the Ministry of Energy of Mozambique, are seeking technical advice and support for the formulation of a suitable baseline methodology and approach that is in line with the requirements of Article 6 and the objectives of the Paris Agreement.
A baseline methodology will be developed to assess the carbon emission reduction potential of hydropower plants applicable under Article 6 of the Paris Agreement. An important consideration is that currently there are no approved methodologies under Article 6.
Different methodological approaches will be mapped out. The most suitable approach will be selected by the partners, The Ministry of Finance and the Ministry of Mineral Resources and Energy.
The development of the methodology is not only crucial to help Mozambique achieve its nationally determined contributions (NDC) but also to contribute to the achievement of the carbon targets of its neighboring countries in the Southern African Power Pool, mainly South Africa.
The carbon emission estimation will play an essential role in mobilizing the necessary climate finance for the plants. A robust estimation is required to ensure the environmental integrity of the country’s CO2 emission reductions. This will result in additional climate finance resources to make the hydropower projects financially sustainable.