Zambia is poised to attract up to USD 420 million in new investment for renewable energy development under a landmark carbon finance programme launched by the Ministry of Green Economy and Environment.
The programme, known as the Carbon Feed-In Premium (CFIP), is a results-based financing mechanism designed to accelerate the country’s transition to clean power by supporting grid-connected renewable energy projects paired with battery storage. It is expected to fast-track the construction of at least 300 megawatts of solar photovoltaic infrastructure, helping to stabilise electricity supply during peak demand hours.
Government says the CFIP is a direct response to longstanding challenges faced by independent power producers, including limited bankability of ZESCO and power purchase tariffs that often fail to guarantee viable returns. By offering carbon payments as an additional incentive for verified emission reductions, the programme will act as a tariff top-up, improving project bankability and reducing risk for investors and lenders.
The initiative follows the signing of a Mitigation Outcome Purchase Agreement between Zambia and Norway in January 2026, with Norway committing between USD 80 million and USD 200 million in carbon finance. The arrangement is anchored in Article 6 of the Paris Agreement and enables both countries to trade internationally transferred mitigation outcomes from eligible renewable energy projects.
JUST TO UNLOCK YOUR MIND
The Call for Proposals remains open until 31 May 2026, with both independent power producers and ZESCO-led projects encouraged to apply. The Ministry says the CFIP will play a critical role in strengthening energy security, supporting economic growth and driving nationwide decarbonisation efforts.
[Brave Heart News | UnlockingMinds]
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