Investors from the United Arab Emirates (UAE) pledged to invest $450 million in purchasing African carbon credits from the Africa Carbon Markets Initiative (ACMI).
That happened at the inaugural climate summit for Africa, where Kenyan President William Ruto unveiled an ambitious plan to increase the continent’s carbon credit production by 19 times by the end of the decade.
ACMI was established during Egypt’s COP27 summit the previous year.
In his address to delegates, President Ruto said the concept of green growth should be viewed not only as a climate necessity but also as a substantial source of economic opportunities, potentially yielding billions of dollars for both Africa and the world.
African leaders are advocating for the utilization of market-driven financial mechanisms, such as carbon credits, or offsets. CO2 credits are generated through projects that mitigate emissions, typically in developing nations. Examples of such initiatives include reforestation and transitioning to cleaner energy sources.
Companies seeking to balance their emissions output against climate targets can purchase these carbon credits. Each credit is equal to avoiding one metric ton of carbon dioxide.
Organizers of the three-day summit held in Nairobi said they aim to reshape perceptions of Africa, positioning it as a hub for climate-related investments rather than solely a region affected by floods, droughts, and food scarcity, Reuters reported.
African governments see carbon credits and similar market-driven financial instruments as a crucial tool to catalyzing funding from wealthier donor nations.