GEAPP, SEforAll & Others Launch Africa Carbon Market Initiative

Global energy Alliance for People and Planet, Sustainable Energy for All, and the United Nations Economic Commission for Africa unveiled the African Carbon Market Initiative (ACMI) at COP27. The ACMI was launched to increase Africa's involvement in the voluntary carbon market and assist Africa in expanding its supply and demand for carbon credits. The ACMI has four primary goals: increasing African credit retirements, creating and sustaining millions of employment, strengthening the quality and integrity of African credits, and ensuring equal and transparent distribution of carbon credit earnings.

Carbon credits are sources of climate financing, and voluntary carbon markets play a crucial role in supplementing direct decarbonization initiatives. Globally, voluntary carbon markets increased at a compounded growth rate of over 30% between 2016 and 2021, with a credit retirement of over US$700 million in 2021. Although the demand for carbon credits originating from Africa has been increasing, this growth is still modest, with only 11% of all global credit issued between 2016 and 2021 originating from Africa.

To reach net zero by 2050, emerging markets and developing nations require an annual investment of $1 trillion by 2030; consequently, the voluntary carbon market provides an opportunity for Africa to establish carbon initiatives that will channel foreign investments and create access to climate funding.