The Africa Carbon Markets Initiative (ACMI) has been launched with the aim of dramatically expanding Africa’s participation in voluntary carbon markets.
Led by a thirteen-member steering committee of African leaders, CEOs, and carbon credit experts, the initiative was inaugurated at COP 27 in collaboration with The Global Energy Alliance for People and Planet (GEAPP), Sustainable Energy for All.
Commenting on the announcement, Vice President of Nigeria and ACMI steering committee member, Yemi Osinbajo said, “Carbon markets can deliver tremendous benefits for Nigeria and for Africa—creating jobs, driving green investment, and reducing emissions. Nigeria is putting the groundwork in place today so that in subsequent years, carbon credits become a major industry that will benefit our people.”
ACMI is also working with major carbon credit buyers and financiers, such as Exchange Trading Group, Nando’s, and Standard Chartered, to set up an advance market commitment for hundreds of millions of dollars for high-integrity African carbon credits.
For example, mobilizing $500 million, at an average price of $10 per carbon credit, could support the development and delivery of at least 50 MtCO2e, which is equivalent to the total credits retired from Africa from 2010 through 2020.
Following the lead of other ACMs in the space, ACMI intends to send a strong demand signal for carbon credits across all project types – especially those where Africa has untapped potential. These include nature-based solutions, renewable energy projects, cookstoves, and more.
Carbon markets offer an incredible opportunity to unlock billions for the climate finance needs of African economies while expanding energy access, creating jobs, protecting biodiversity, and driving climate action. However, Africa currently produces only a tiny percentage of its carbon credit potential.
