Switzerland has struck a carbon offsetting agreement with Peru, in what the two nations say is the first deal of its kind under Article 6 of the Paris agreement.

While negotiators at UN climate talks have yet to overcome deep divisions on the design of a global carbon market, a framework is in place for countries to strike bilateral deals.

The deal signed on Tuesday allows Peru to fund sustainable development projects, while Switzerland gets to count the resulting emissions cuts against its national targets.

Guest post from Climate Home News