UAE-Africa ETS Cooperation: Purchase of US$450 million in carbon credits by 2030

ABU DHABI, Sept. 4 (UPI) — The Emirates Carbon Alliance is powered by the UAE’s independent climate change accelerator.

The UAE Carbon Alliance, chaired by His Highness Sheikh Shama bint Sultan bin Khalifa Al Nahyan, President and CEO, has signed a non-binding letter of intent with the African Carbon Market Initiative’s AMC, committing to purchase US$450 million of African carbon credits by 2030.

The African Carbon Market Initiative (ACMI) is a collaboration co-incubated by Sustainable Energy for All (SEforALL), the Global Energy Alliance for People and Planet (GEAPP) and the Rockefeller Foundation, and launched in partnership with the United Nations Economic Commission for Africa (UNECA) and the United Nations High-Level Advocate on Climate Change.

The initiative was launched during COP27 to create, expand and sustain Africa’s next generation of high-integrity carbon credits to reduce emissions and bring transparency and integrity to the region’s voluntary carbon markets.

It is reported that the signatories under the African ETS Initiative advance market signals represent carbon market buyers and investors interested in purchasing African carbon credits to support the development of the African carbon market.

The Emirates Carbon Alliance is headed by His Highness Sheikh Shama bint Sultan bin Khalifa Al Nahyan, President and CEO of the UAE Independent Climate Change Accelerator (UICCA), said, “The carbon market is a key tool in our decarbonization journey as we tackle the climate crisis. The UAE Carbon Alliance is eager to capture the total demand for high-quality carbon credits from the UAE; Demand has outstripped supply from the UAE alone. Our partnership with the Africa ETSI provides carbon market buyers in the UAE and the wider region with access to high-quality carbon credits from Africa. This will not only help unlock Africa’s carbon credit generation potential, but also support sustainable investment opportunities and long-term climate impacts. Through this commitment, we hope to build more between our two regions.plus an integrated and efficient carbon market mechanism. ”

Paul Mousaula, CEO of the Africa ETI, said: “We are pleased to announce this critical signal with the UAE Independent Climate Change Accelerator (UICCA), which reinforces the mission of ETI I to build integrity through transparency and accountability for high-integrity carbon credits in Africa. We seek to promote an enabling environment in jurisdictions across the continent, linking demand in regions such as the Middle East with the potential for high-integrity supply in Africa. The commitment of the African Carbon Market Initiative is a testament to the opportunities created by international cooperation to address climate change. Together, we are committed to creating a sustainable, transparent and equitable carbon market ecosystem in Africa that will have a significant positive impact on our continent and the world. ”

To date, the current signatories to the advance market signals with the Africa Carbon Market Initiative are Standard Chartered Bank, Veteri Bank, ETG and Nando Bank, which are estimated to raise US$200 million by 2030 to purchase carbon credits in Africa. The core carbon principles of the African Carbon Market Initiative and the Voluntary Carbon Market Integrity Commission, based on the section.