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Trafigura-backed alliance to invest $1bln-plus in four African carbon projects
['Susanna Twidale', 'Simon Jessop']
Zawya.com - All Regional News
LONDON - A plan backed by global energy trader Trafigura to restore African woodlands has picked its first four carbon removal projects and aims to invest at least $1 billion over their 40-year lifetime, its carbon trading chief told Reuters.
Part of the Miombo Restoration Alliance, a public-private initiative engaged with 11 central and southern African governments, the projects cover 675,000 hectares and aim to restore woodlands that would remove over 50 million tons of climate-damaging gases.
The non-profit organizations International Conservation Caucus Foundation and Conservation International will convene participants and help develop the projects.
"We really see the carbon markets as critical, as being able to channel private sector capital in a way that makes these projects long-term and sustainable," Hannah Hauman, Head of Carbon Trading at Trafigura told Reuters.
Similar credits have sold for above $50 per ton of carbon, which would equate to at least $2.5 billion across the four projects.