Today, the Africa Carbon Markets Initiative (ACMI) announced 13 action programmes. Steering committee members, made up of African leaders, CEOs, and carbon credit experts, met at Abu Dhabi Sustainability Week to build on early momentum and set out further ambitions.

In the lead-up to COP28 ACMI’s action programmes aim to accelerate Africa’s participation in the global carbon market by:

• Launching country activation plans for multiple countries.
• Advancing market commitments with an ambition up to USD 1 billion for the purchase of high-integrity African credits.
• Developing projects based on new methodologies and the realities of Africa such as diesel replacement credits and biodiversity credits.
• Increasing a significant volume of credits on the continent.

ACMI was inaugurated in November 2022 at COP27 with a bold, long term-ambition for the continent - to reach 300 million credits retired annually by 2030. This level of ambition would unlock USD 6 billion in income and support 30 million jobs. By 2050, ACMI is targeting over 1.5 billion credits annually in Africa, leveraging over USD 120 billion and supporting over 110 million jobs.

At COP 27, USD 200 million was secured in advanced market commitments from global corporates. In addition, seven African nations signed up to develop country carbon activation plans including Burundi, Gabon, Kenya, Malawi, Mozambique, Nigeria and Togo. A further 7 corporate buyers and 7 countries approaching commitment to the programme demonstrate the progress made in the past two months.

During the launch of ACMI at COP27, H.E. William Samoei Ruto, President of the Republic of Kenya, said “Our people have the potential to play a unique, indispensable, and globally significant role in the prevention and mitigation of emissions, protection of crucial ecosystems and the restoration of precious carbon sinks. The urgent actualisation of these critical interventions offers humanity its best chance of prevailing in the existential contest with climate change-induced catastrophe. The good news is that the world has a golden opportunity to rapidly achieve these objectives. By developing a robust, transparent and sustainable mechanism through which a carbon credits market can yield attractive income and development opportunities for communities at the frontlines in the fight against climate change.”

Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy, states, “The Africa Carbon Markets Initiative will be a transformational opportunity for Africa, with the potential to unlock billions in climate finance to support economies while expanding energy access, creating jobs, safeguarding biodiversity, and driving climate action towards our joint Paris goals.”

Joseph Nganga, Vice President, Africa, for the Global Energy Alliance for People and Planet, noted, “Current levels of climate finance fall short of Africa’s needs. The continent requires US$3 trillion to implement its aspect of the Paris Agreement, yet less than US$20 billion was provided in total to Africa between 2016 and 2019. Voluntary carbon markets can play a crucial role in filling this finance gap, but its potential is far from being realised. The Africa Carbon Markets Initiative can help us achieve a more rapid and equitable energy transition for Africa, a transition that supports lives and livelihoods with clean, reliable energy while countering the existential threat of our time, climate change.”

Antonio Pedro, Executive Secretary of the United Nations Economic Commission for Africa, has emphasised, “Africa is at the centre of the opportunity to develop the voluntary carbon credit market in a way that accelerates climate action, fosters shared value creation and creates sustainable livelihoods for communities at this time of global economic uncertainty.  To recover from the global pandemic and to address the food and energy crisis which impacts Africa the most severely, we need to rethink Africa’s economic model- shifting to invest in sustainable value chains that deliver jobs and resilience. The Africa Carbon Markets Initiative aims to provide realistic, transparent and reliable pathways for investment.” 

Bogolo Kenewendo, Special Adviser Africa Director, The Climate Champions Team, said, “Africa is undoubtedly the nature-positive economic superpower of the world. With access to the global voluntary carbon market, valuing and commercialising nature assets could unlock new financing opportunities for development for Africa. This market, operating with integrity, equity and transparency, could help Africa deliver on three fronts: nature, climate and development”.

Dr. Mahmoud Mohieldin, UN Climate Change High Level Champion COP 27 Presidency, stated, “The world has no shortage of financial resources, scientific ingenuity, and technological wherewithal to deal with the climate crisis. What has been lacking is leadership that  will marshal the resources and solutions for the parts of the world that desperately need them for the sake of the protection of nature assets and actioning a just transition that will help us all attain our 1.5 degrees ambition. ACMI is designed to create space for the public & private sectors to marshal assets to financial flows”

ACMI was launched in collaboration with The Global Energy Alliance for People and Planet (GEAPP), Sustainable Energy for All (SEforALL), and the UN Economic Commission for Africa, with the support of the UN Climate Change High Level Champions.

Sustainable Energy for All (SEforALL) delivery partner and multinational utility EDP - Energias de Portugal is exemplifying the role the private sector can have in supporting Sustainable Development Goal 7 (SDG7) – affordable and clean energy for all by 2030.

EDP’s first edition of the Access to Energy Fund was launched last fall, with 450,000 Euros earmarked for promoting access to energy in remote areas without access to the electricity grid.

Now, EDP has announced that this money will be allocated to six sustainable and clean energy projects across East Africa, notably in Kenya, Tanzania, Mozambique and Malawi.

According to the 2018 Tracking SDG7: The Energy Progress Report report, 600 million people across Africa do not have any electricity, with millions more having only intermittent access to power. The consequences of these access gaps are far-reaching, limiting opportunities for quality education and health care.

"Access to energy has the potential to play a revolutionary role in emerging countries, being an essential tool for a society to foster opportunities and equality", António Mexia, president of EDP, explained in announcing the Access to Energy Fund’s recipients.

Building partnerships across the spectrum of stakeholders is at the heart of all that SEforALL does to 'change the game' on sustainable energy and accelerate the pace of progress towards SDG7. This includes supporting private sector partners, like EDP, in developing innovative solutions that close energy access gaps.

EDP’s Access to Energy Fund places the company’s financial support behind a series of initiatives that will impact upwards of 55,000 people, of whom ten thousand will be impacted directly. Co-operative Bank Foundation, SAVIC Africa, UN-Habitat, Girl MOVE, Energía Sin Fronteras Foundation and Sustainable Investments and Development Initiatives were selected from a list of 108 entities who applied for the first edition of the fund.

In Kenya, Co-operative Bank Foundation will install solar greenhouses to power irrigation systems in 12 schools to ensure that there will be adequate supply of food throughout the year while providing energy access for 6,000 people. Meanwhile, SAVIC Africa's OKAPI Green Energy project will build a 12 kWp photovoltaic mini-grid at Kakuma Refugee Camp with smart metering technology to provide electricity to 150 homes and 50 business clients.

In Mozambique, the Girl MOVE Academy's "Energy for a Better Future" program will create a 30 kWp solar energy plant for an ECOCampus and IT center for training a new generation of female leaders. UN-Habitat will build solar energy systems to supply 12 classrooms at two schools affected by natural disasters. In addition to promoting access to education for 1,300 people, the initiative also covers the installation of emergency alert systems, internet access and charging stations, which could generate revenue for schools.

Energía Sin Fronteras Foundation will offer 25.9kWp photovoltaic panels to provide electricity at St. Mary's Rehabilitation Center in Malawi so that it will be able to provide 24-hour medical care and clean water to patients.

The Sustainable Investments and Development Initiatives (SIDI) will also allow 1,500 fishermen and commercial and public facilities to access energy through a 10 kWp photovoltaic mini-grid that will enable the generation, storage and distribution of power to a remote island in Tanzania.

These recipients were selected according to criteria such as social impact, partnerships, sustainability, potential for expansion and number of beneficiaries, work in the areas of education, health, water and agriculture, business and community. Each one received financial support ranging from 25,000 to 100,000 Euros based on their commitment to implement their projects by the beginning of next year.

Read more about the selected initiatives.

*EDP President António Mexia is the Chair of the Administrative Board of Sustainable Energy for All

Energies de Portugal (EDP), a Sustainable Energy for All Delivery Partner, has announced the launch of an energy access fund that will allocate about €500,000 annually to promote renewable energy projects in developing countries.

The application process for the inaugural program is open from October 22 to November 25, 2018.

The fund invites organizations from around the world, both profit and non-profit, to help develop projects in Kenya, Tanzania, Mozambique and Malawi. The selection of these four countries reflects the Group’s strategy this year to prioritize investments in East Africa due to the region’s greater political stability and dynamic economic development.

The initiative is part of EDP’s announcement in May that it would provide €12 million under its long-standing access to energy (A2E) program over the next three years to promote universal access to sustainable energy in developing countries, with 200,000 people expected to benefit.

“Access to energy must be a concern and priority for all of us. As part of our energy access strategy, which aims to benefit more than 200,000 people over the next three years, we have launched an investment fund for renewable solution projects with a relevant impact in developing countries,” said EDP Group CEO António Mexia, who is also Chair of the Administrative Board of Sustainable Energy for All.

The A2E CSR Fund Program will focus on five areas in which energy plays a crucial role: education, health, water and agriculture, income generation and community projects. The projects will be selected according to criteria such as social impact, partnerships, sustainability, scalability, and the number of beneficiaries.

Funding for each project will range between €25,000 and €100,000, with the fund covering up to 75% of total project costs for non-profit entities and up to 50% of total project costs for for-profit entities.

The project selection process will be concluded on December 21, 2018. The allocation of the funds will be formalized in January and all the projects must be implemented during 2019.

EDP is committed to contributing to the achievement of the United Nations Sustainable Development Goals to help transform the way energy is produced, distributed and consumed. Access to energy is a necessary condition to break the poverty cycle and allow the social and economic development of remote rural areas.

Lisbon-based EDP is the world’s third largest electricity production company, providing electricity to 10 million customers in 14 countries on four continents, with almost 70% of its energy produced from renewable resources.

More information, including regulations and application forms, are available here.

Photo credit: EDP