UAE Carbon Alliance Pledges to Acquire $450 Million in African Carbon Credits by 2030 – EQ
In a significant step towards combating climate change, the UAE Carbon Alliance, led by Her Highness Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, President and CEO of the UAE Independent Climate Change Accelerators (UICCA), has signed a non-binding Letter of Intent with the Africa Carbon Markets Initiative’s Advance Market Signal. The alliance has pledged an indicative intended purchase of US$450 million worth of African carbon credits by the year 2030.
The Africa Carbon Markets Initiative (ACMI) is a collaborative effort backed by Sustainable Energy for All (SEforALL), the Global Energy Alliance for People and Planet (GEAPP), and The Rockefeller Foundation, in partnership with the United Nations Economic Commission for Africa (UNECA) and the UN Climate Change High-Level Champions. Launched during COP27, ACMI seeks to establish, amplify, and sustain high-integrity carbon credits in Africa. Its ultimate goal is to reduce emissions, enhance transparency, and promote integrity within voluntary carbon markets across the African continent.
Signatories under ACMI’s Advance Market Signal represent carbon market buyers and investors who are committed to purchasing African carbon credits, thus aiding the development of African carbon markets.
Her Highness Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, President & CEO of UICCA, expressed the importance of carbon markets in addressing the climate crisis. She stated, “The UAE Carbon Alliance aims to aggregate demand for high-quality carbon credits from the UAE, demand which already exceeds the supply available from the UAE alone. Our collaboration with the Africa Carbon Markets Initiative provides carbon market buyers in the UAE and the wider region with access to high-quality carbon credits in Africa.”
Paul Muthaura, CEO of ACMI, applauded the commitment from the United Arab Emirates Independent Climate Change Accelerators (UICCA) and emphasized its significance in building integrity, transparency, and accountability in Africa’s carbon credit market.
ACMI’s Advance Market Signal has already attracted several prominent signatories, including Standard Chartered, Vertree, ETG, and Nando’s, with an estimated US$200 million allocated for the purchase of African carbon credits by 2030. ACMI aligns itself with the Integrity Council for Voluntary Carbon Market’s Core Carbon Principles, the Science-Based Targets initiative (SBTi), and the Voluntary Carbon Markets Integrity Initiative’s recommendations.
The UAE Carbon Alliance, chaired by Her Highness Sheikha Shamma bint Sultan bin Khalifa Al Nahyan, is a coalition of partners dedicated to advancing the development of a carbon market ecosystem. Founding members include AirCarbon Exchange (ACX), First Abu Dhabi Bank (FAB), Mubadala Investment Company (Mubadala), Abu Dhabi National Energy Company (TAQA), and Abu Dhabi Future Energy Company (Masdar), with UICCA serving as its secretariat. This collaborative effort demonstrates the commitment of both the UAE and African regions to tackle climate change and promote sustainable practices in carbon markets.
