French utility Engie SA (EPA: ENGI) will partner with sustainable development consultancy CarbonClear to tap into the potential of the voluntary carbon market (VCM) to fund access to renewable energy in Africa.
The agreement was signed through Engie Energy Access, the French major’s subsidiary focused on providing decentralized electricity access in Africa, and Engie Global Energy Management & Sales (GEMS), its energy management and sales division. It was announced during the Energy Access Investment Forum (EAIF), held in Abidjan, Ivory Coast on 21-23 March 2023.
Through the partnership with CarbonClear, Engie will seek to exploit the full potential of the VCM, worth an estimated US$ 2 billion globally, to finance electrification in Africa.
Under the agreement, CarbonClear will certify the carbon offsets generated by Engie Energy Access’s solar kits distributed across sub-Saharan Africa by using its “innovative and fully digital” model, Engie Energy Access said in a statement.
Relevant: MENA Voluntary Carbon Market Is A Reality And Signed Five New Partners
Afterwards, Engie GEMS will sell the credits to climate-conscious customers looking to offset their greenhouse gas (GHG) emissions, thereby giving them the opportunity to help fund projects with high social and environmental impact.
Engie Energy Access’s CEO, Gillian-Alexandre Huart, said that the agreement will help catch up with the achievement of the Unites Nations’ Sustainable Development Goal 7, namely ensuring access to affordable, reliable, sustainable and modern energy for all by 2030.
As a result of the partnership, approximately 500,000 metric tons of CO2 equivalent in carbon credits will be certified, which will help electrify 25 million people in sub-Saharan Africa by 2025, according to Mr. Huart.
Engie Energy Access’s serves rural and off-grid areas mainly in Zambia, Mozambique, Tanzania, Rwanda, Kenya, Uganda, Ivory Coast, Benin and more recently in Nigeria.
Read more: African Oil And Gas Companies Looking At Carbon Credit Opportunities
CORRECTION: A previous version of this article incorrectly stated that CarbonClear is a subsidiary of ECOACT.