The global market for carbon credits is experiencing rapid growth, with a 50% increase in real demand observed in 2021 alone. Projections indicate that the value of the voluntary market could reach anywhere between $40 billion to $100 billion by 2030. This presents a significant opportunity for Africa, given its vast natural resources. However, the continent currently only generates approximately 2% of its potential annual carbon credits.
Recognizing the need to leverage this potential, the African Carbon Markets Initiative (ACMI) has emerged as an organization focused on amplifying Africa’s position in the global carbon markets. Led by Sherif Ayoub, ACMI is a collaborative effort supported by key entities such as Sustainable Energy for All, the United Nations (UN), the Global Energy Alliance for People and Planet (GF), and the Rockefeller Foundation.
Carbon markets provide a platform for governments and companies to trade carbon credits, which are used to offset their carbon emissions. These markets encompass both compliance markets and voluntary carbon markets. Compliance markets, such as the European Union’s Emissions Trading System (EU ETS), require companies to purchase carbon credits to neutralize their emissions, while voluntary carbon markets (VCMs) operate under Article 6 of the 2016 Paris Climate Agreement.
ACMI’s primary objective is to foster, amplify, and sustain Africa’s participation in the voluntary carbon markets, with the future potential of expanding into compliance markets. By actively engaging African countries, governments, and companies, ACMI aims to unlock the continent’s untapped potential in generating carbon credits and capitalize on the growing global demand. This strategic approach aligns with the broader goals of sustainable energy, climate action, and environmental preservation.
Through its collaborative framework, ACMI seeks to facilitate capacity-building initiatives, knowledge sharing, and technical assistance to African nations and stakeholders. By providing support, guidance, and promoting best practices, ACMI aims to empower African countries to develop and implement effective carbon offset projects. These projects have the potential to contribute to emissions reduction targets while also generating economic and social benefits for local communities.
ACMI’s long-term vision includes positioning Africa as a prominent player in the carbon markets, attracting investments, and fostering sustainable development across the continent. By leveraging Africa’s natural resources and promoting innovative solutions, ACMI endeavors to create a vibrant and dynamic carbon market ecosystem in Africa.
Through its collaborative efforts and strategic partnerships, ACMI aspires to address the existing gap between Africa’s carbon credit generation and its full potential. By seizing the opportunities presented by the voluntary carbon markets and future compliance markets, ACMI aims to drive Africa’s sustainable development agenda while actively contributing to global climate change mitigation efforts.
