The Africa Carbon Markets Initiative (ACMI), launched at COP27 in late 2022, has made significant strides in boosting carbon market investments across the continent. Despite securing $650 million in advance commitments, the initiative still falls short of its ambitious $1 billion target. With backing from the Rockefeller Foundation and the United Nations, ACMI is determined to bridge this gap and accelerate the growth of Africa's carbon markets.
Progress and Challenges
As of 2023, ACMI has tracked an increase in commitments from $450 million to $650 million, aiming to reach the $1 billion mark by November 2024, a year later than originally planned. To achieve this, ACMI has outlined a revised approach, focusing on becoming a central reference for African carbon markets and organizing multiple events and media campaigns throughout the year.
A critical aspect of ACMI's strategy involves engaging with regional bodies and governments to harmonize carbon market approaches. This includes organizing donor roundtables and publishing regular reports to provide updates and insights into the market's progress.
Addressing the Bottlenecks
One of the significant challenges faced by the African carbon market is the relatively small scale of project developers. Approximately two-thirds of these developers operate a single project, and 80% are concentrated in just one country. To address this, ACMI has initiated training programs for auditors focused on the continent, aiming to reduce costs and expedite the job readiness period for new auditing staff from 18 months to just six.
Currently, only six out of roughly 40 validation and verification bodies (VVBs) listed as accredited by Verra and Gold Standard have offices in Africa. ACMI's efforts to scale verification capacity through training and supporting the creation of new local VVBs are crucial for the market's growth.
Expanding Focus and Partnerships
ACMI has engaged with seven African countries—Kenya, Mozambique, Nigeria, Ghana, the Democratic Republic of Congo, Malawi, and Rwanda—on their carbon market plans. The initiative has also broadened its scope to include compliance carbon markets and Article 6 of the Paris Agreement.
Additionally, ACMI has developed a methodology concept note for phasing out diesel and petrol generators in partnership with the Switzerland-based Gold Standard. This effort aligns with ACMI's goal of supporting sustainable development and reducing greenhouse gas emissions across the continent.
Future Goals
By COP29, scheduled for November 2024, ACMI aims to secure over $1 billion in advance market signals, with at least 10% converted into genuine transactions. The initiative's leadership, comprising a 13-member steering committee of African leaders, CEOs, and carbon credit experts, is committed to achieving this milestone.
ACMI's journey reflects the growing importance of carbon markets in driving climate action and sustainable development in Africa. With continued support and strategic initiatives, the initiative is well-positioned to transform Africa's carbon market landscape and contribute significantly to global efforts to combat climate change.
For more information on the Africa Carbon Markets Initiative and its ongoing projects, visit the ACMI website.
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