Zim, UAE firm seal US$1,5 billion carbon credits deal
Ivan Zhakata–Herald Correspondent
Global Carbon Investments, a trailblazing green investments vehicle based in the United Arab Emirates, has signed a US$1,5 billion memorandum of understanding with the Ministry of Environment, Climate and Wildlife to unlock the value of Zimbabwe’s carbon sinks and carbon mitigation measures.
The money is for financing the development and sale of future carbon credits, in the form of Internationally Transferable Mitigation Outcomes (ITMOs), aligned with Article 6 of the Paris Agreement.
In this pioneering agreement with GCI, Zimbabwe will be propelled to the forefront of such ITMO-based financial facilities, the first of its kind within the African continent.
As the ITMO market develops, there is a strong anticipation of significant value being created by 2050, aligning with global efforts to combat climate change.
The signing ceremony occurred in Harare with Minister of Environment, Climate and Wildlife Mangaliso Ndlovu and Mr Saboor Karamat of the GCI General Council.
It was witnessed by President Mnangagwa and Sheikh Ahmed Dalmook al Maktoum, member of the Dubai ruling family and chairman of GCI and Blue Carbon.
GCI is a UAE-based company, owned by the Private Office of Sheikh Ahmed Dalmook al Maktoum, that aims to catalyse global efforts for decarbonisation through crucial climate finance investments.
Under the agreement, critical financing will be directed towards the prefinancing of carbon credit projects in Zimbabwe that will be developed by Blue Carbon, a GCI fully owned subsidiary and project developer, specialised in nature-based solutions.
The event followed a recently signed agreement between Blue Carbon and First Abu Dhabi Bank, leveraging the bank’s target of US$75 billion in sustainable financing investments.
The collaboration between Blue Carbon and the bank aims to channel funding into crucial carbon projects, leading the way for massive financing opportunities of this kind.
Blue Carbon and Zimbabwe have recently formalised an agreement for the development of ITMO generating REDD+ projects, spanning an area of up to 7,5 million hectares and promising substantial environmental, social, and economic benefits.
The financing initiative spearheaded by GCI is poised to infuse critical funding into these projects, with preliminary assessments projecting an estimated US$13 billion in revenue from Zimbabwe’s ITMO-based carbon credits over the coming decades.
GCI’s collaboration with Zimbabwe builds upon significant global discussions, including those stemming from the Africa Climate Summit, UN General Assembly deliberations, and NY Climate Week, all of which underscore the imperative to accelerate and collectively enhance climate ambitions.
It underscores the pressing urgency to address climate change, emphasizing the indispensable role of climate financing and collaborative partnerships, as exemplified by this remarkable alliance.