In a significant move towards sustainability, the UAE Carbon Alliance has unveiled plans to invest $450 million in African carbon credits by 2030. This strategic investment follows a non-binding Letter of Intent signed between the UAE Carbon Alliance and the Africa Carbon Markets Initiative’s (ACMI) Advance Market Signal during the COP27 summit in 2022.
The primary objective of this investment is to bridge the gap between Africa’s robust supply of high-integrity carbon credits and the surging demand for carbon offset solutions in the Middle East.
Leading this endeavor is Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, the Head of UAE Carbon Alliance and President and CEO of the UAE Independent Climate Change Accelerators (UICCA). She highlighted the pivotal role of carbon markets in addressing the climate crisis, stating, “Carbon markets are a crucial tool in our decarbonization journey.”
Sheikha Al Nahyan underscored the importance of this collaboration with the Africa Carbon Markets Initiative, which not only grants UAE and regional carbon market buyers access to high-quality African carbon credits but also unlocks Africa’s significant potential for carbon credit generation, fostering sustainable investment opportunities and long-term climate impact.
The UAE Carbon Alliance’s commitment aims to catalyze the development of more streamlined and efficient carbon market mechanisms across both Middle Eastern and African regions.
The Africa Carbon Markets Initiative (ACMI), a collaborative effort involving Sustainable Energy for All (SEforALL), the Global Energy Alliance for People and Planet (GEAPP), and The Rockefeller Foundation, in partnership with the United Nations Economic Commission for Africa (UNECA) and the UN Climate Change High-Level Champions, has a clear mission. It seeks to establish, amplify, and sustain the next generation of high-integrity carbon credits in Africa, with a focus on reducing emissions and enhancing transparency and integrity in voluntary carbon markets across the region.
ACMI CEO, Paul Muthaura, outlined their objective, saying, “We aim to create an enabling environment across continental jurisdictions that connects the demand from the Middle East, among others, with Africa’s potential for high-integrity supply.”
Key participants in ACMI’s Advance Market Signal include Standard Chartered, Vertree, ETG, and Nando’s, with a collective fund of $200 million already allocated towards the purchase of African carbon credits by 2030.
The UAE Carbon Alliance, consisting of prominent entities like AirCarbon Exchange (ACX), First Abu Dhabi Bank (FAB), Abu Dhabi National Energy Company (TAQA), Mubadala Investment Company, and Abu Dhabi Future Energy Company (Masdar), with UICCA serving as its secretariat, is playing a leading role in promoting sustainable, climate-conscious investments in the region.
Photo Source: Mark Moffett/Minden Pictures/Corbis
By: Montel Kamau
Serrari Financial Analyst
11th September, 2023
