- During the African Climate Summit, a group of UAE energy and financial companies indicated intentions to buy $450 million of carbon credits generated in Africa by 2030.
- The African Carbon Markets Initiative aims to increase the number of carbon credits generated on the African continent from 16 million a year in 2020 to around 300 million by 2030.
The United Arab Emirates is committing hundreds of millions of dollars to offset carbon credits on the continent and buy land from African governments. A group of UAE energy and financial companies indicated intentions to buy $450 million of carbon credits generated in Africa by 2030 during the ongoing Africa Climate Summit (ACS) in Nairobi, Kenya. This move has placed the UAE as a carbon credits leader in Africa.
During a panel event at the ACS yesterday, the African Carbon Markets Initiative (ACMI) disclosed the non-binding agreement to buy $450 million of carbon credits from the UAE Carbon Alliance. Established last June, this coalition includes the Mubadala sovereign wealth fund, renewable energy company Masdar and the UAE’s largest lender, First Abu Dhabi Bank.
The ACMI, launched at Cop27, powers Africa’s push for carbon credits. The group brings together nations including Kenya, Nigeria, Gabon and Western philanthropies like the Rockefeller Foundation and Bezos Earth Fund.
The initiative, run by the American consultancy McKinsey, aims to increase the number of carbon credits generated on the African continent from 16 million a year in 2020 to around 300 million by 2030. The initiative argues that large amounts of credits will be created only if buyers have enough interest. One of the initiative’s main tasks has been to secure an early commitment from investors, of which its biggest supporter is based in the UAE.
Over 30 heads of state are joining nearly 25,000 delegates to raise support for climate action on the continent at the ACS. However, the summit organiser’s strong focus on instruments such as carbon credits to mobilise funds has attracted criticism from environmental groups.
Greenpeace Africa climate and energy campaigner, Thandile Chinyavanhu, said, “It is regrettable that the Africa Climate Summit is becoming a bazaar for carbon credit speculators and propagandists that serve to greenwash rather than reduce harmful emissions. They are risky diversions from real climate and biodiversity action that requires ending fossil fuel expansion and industrial destruction of our ecosystems.”