The Africa Carbon Markets Initiative (ACMI) is a program aimed at creating a regional carbon credit market in Africa. It allows companies to offset their emissions by purchasing carbon credits generated from certified emission reduction projects. The benefits of ACMI include:
- Financial Incentives: Companies can earn additional revenue by selling carbon credits.
- Emission Reductions: Encourages projects that actually reduce greenhouse gas emissions, such as reforestation, renewable energy, and energy efficiency projects.
- Sustainable Development: Contributes to sustainable development goals by supporting local initiatives and improving climate resilience.
The goal of the Africa Carbon Markets Initiative (ACMI) is to develop voluntary carbon markets across Africa.
Voluntary carbon markets are growing, and Africa has untapped potential:
Globally, voluntary carbon markets have grown at a compound annual growth rate of over 31% between 2016 and 2021 (based on carbon credit retirements).
Companies will increasingly commit to the "net-zero" goal.
Africa currently produces only a small fraction of its total potential.
Carbon credit generation could be a transformative opportunity for Africa:
“Carbon markets are increasingly seen as a critical way to channel funds to developing countries.”
Carbon credit projects are cross-sectoral and generate essential co-benefits.
There is potential for carbon credits to become a major commodity (e.g., the "next oil").