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To foster more integrated and efficient carbon market mechanisms between Africa and the Middle East, the UAE Carbon Alliance has pledged $450 million to buy African carbon credits by 2030.

Sheikha Shamma bint Sultan, president and CEO of the UAE Independent Climate Change Accelerators (UICCA), signed a non-binding letter of intent with the Africa Carbon Markets Initiative’s Advance Market Signal on Monday.

The initiative was first launched at COP27 to create, amplify, and sustain the next generation of high-integrity carbon credits in Africa. 

The initiative also aims to reduce emissions and bring transparency and integrity to voluntary carbon markets in the region.

The UAE Carbon Alliance, launched by the UICCA in June, aims to help companies transition to a green economy in line with the UAE’s net zero by 2050 Strategic Initiative. A carbon market is a system where carbon credits are bought and sold.

“Our collaboration with the Africa Carbon Markets Initiative provides carbon market buyers in the UAE and wider region access to high-quality carbon credits in Africa. This does not only help to unlock Africa’s carbon credit generation potential but also supports sustainable investment opportunities and long-term climate impact,” Sheikha Shamma said.

The Africa Carbon Markets Initiative (ACMI) was incubated by Sustainable Energy for All, the Global Energy Alliance for People and Planet (GEAPP), and The Rockefeller Foundation and launched in partnership with the United Nations Economic Commission for Africa (UNECA) and the UN Climate Change High-Level Champions.

Paul Muthaura, CEO of ACMI, said: “UICCA’s pledge is a testament to the opportunity created through international cooperation in addressing climate change. Together, we aim to create a sustainable, transparent, and equitable carbon market ecosystem in Africa that will drive significant positive impact for our continent and the world.”

The UK announced it would provide $62 million in funding for climate change projects in Africa throughout the Africa Climate Summit in Nairobi. Germany also announced a $65 million debt swap with Kenya to free up money for green projects.