The Africa Carbon Markets Initiative (ACMI) has declared substantial progress and achievements made in 2023, underscoring its commitment to accelerating climate action, promoting sustainable development, and addressing the impacts of climate change in Africa.
By sharing its progress, ACMI is doubling down on its support to African carbon markets, whilst also recognizing the incredible progress that global carbon markets have seen at COP28.
Here are four things we learned from the report?
1. Comprehensive Carbon Market Activation Plans (CMAPs):
Africa Carbon Markets Initiative has been actively collaborating with seven African countries, including Kenya, Mozambique, Nigeria, Malawi, DRC, Ghana, and Rwanda, to develop robust Carbon Market Activation Plans (CMAPs).
These plans focus on formulating regulations and policies for both voluntary and compliance carbon markets.
Kenya was the first country embarking on this holistic and enabling journey, this initiative, in collaboration with USAID, emphasizing a holistic approach to integrating carbon markets into broader climate strategies.
2. International Commitments and Investments:
ACMI has secured over $1 billion in signed intent from companies committed to purchasing high-integrity African carbon credits by 2030. Simultaneously, $250 million in intent to invest in high-integrity African credit projects has been pledged.
These commitments will help crowd in financing by improving risk perceptions among investors while also sending a strong demand signal to project developers.
These commitments will also adhere to ACMI’s integrity principles, in alignment with VCMI Claims Code of Practice, promoting globally accredited net-zero targets and a strategic approach to emissions reduction.
3. Diesel/Petrol Generator Set Phase-Out Methodology Concept Note:
ACMI’s Gold Standard-approved methodology concept note’s technical advisory signals a pivotal step in scaling carbon revenues for clean energy.
Once fully developed, the methodology will support the phase-out of fossil fuel generator sets before end of life, directing finance toward renewable energy replacements.
With this effort, Africa Carbon Markets Initiative is contributing to the momentum of using carbon credits to phase out fossil fuels.
4. ACMI Showcase: First-Ever African Carbon Credit Project Listing:
With over 100 projects across 25+ countries, ACMI has developed the first-ever African carbon credit project listing, which will be shared publicly.
This initiative highlights projects aligned with ACMI’s integrity principles, emphasizing transparency and community benefit sharing.
The ACMI Showcase demonstrates the breadth and quality of African carbon credit supply, fostering buyer confidence.
Paul Muthaura, CEO of ACMI, commented, “ACMI’s achievements over the past year are the result of significant partnerships and collaborative efforts. Together with our supporters and partners, we are making strides towards a stronger carbon markets ecosystem in Africa.”
ACMI’s Vision for Carbon Markets: A Transformative Force for Good
Africa Carbon Markets Initiative recently published its Narrative on African Carbon Markets, emphasizing the transformative potential of carbon markets in financing sustainable development in the Global South.
The voluntary carbon market, valued at ~$2 billion in 2022 alone, is expected to grow substantially, generating income, creating jobs, and fostering green investments in Africa.
As ACMI continues to lead the way in shaping the future of carbon markets in Africa, these achievements represent a significant milestone in the collective effort to combat climate change and drive sustainable development across the continent.
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