UAE to Power Up African Carbon Credit Market with $450M Pledge

/in /by

The United Arab Emirates Carbon Alliance has committed to buy $450 million carbon credits from the African Carbon Markets Initiative (ACMI) by 2030. 

The deal occurred at the first Africa Climate Summit where Sheikha Shamma bint Sultan, president and chief executive of the UAE Independent Climate Change Accelerators (UICCA) signed a letter of intent with ACMI. 

It’s one of the highly-anticipated announcements at the 3-day event currently taking place in Kenya this week. Participating country leaders and delegates come together to ramp up climate action on the continent. 

First African Carbon Credit Mega Deal 

UICCA launched the UAE Carbon Alliance in June to help companies transition to a green economy. This is part of the country’s Net Zero by 2050 Strategic Initiative.

The Emirati coalition includes members such as Mubadala Investment Company, First Abu Dhabi Bank, Masdar, and AirCarbon Exchange.

Fueling Africa’s push for carbon credits is the ACMI, launched at COP27 last year. The initiative brings together African countries and large climate investors including Bezos Earth Fund and Rockefeller Foundation. 

Their goal is to reduce emissions and bring transparency to voluntary carbon markets in the region through trading carbon offsets.

Run by McKinsey & Company, ACMI seeks to increase the stocks of African carbon credits to 300 million by 2030. Achieving this ambitious target needs great interest from large buyers and supporters of carbon markets.

African leaders particularly advocate for the use of market-driven financial mechanisms, such as carbon credits, also called offsets. These credits are created through projects that reduce emissions such as reforestation and shifting to renewable or cleaner energy sources.

Companies looking to compensate for their carbon emissions against their set targets can buy carbon credits. Each credit equals to preventing the release of one tonne of CO2. 

The ACMI founders believe that to get enough carbon credits for their goal, they must secure early commitment from investors. And the UAE Carbon Alliance is their biggest backer so far. 

The Emirati group aims to become “a leading hub for high integrity, high-quality carbon markets”, for trading carbon offsets. They seek to bridge the high-integrity supply of African carbon credits to high demand from the Middle East.

Globally, the demand for carbon credits is expected to grow exponentially despite criticisms thrown at the market. Industry estimates project that carbon offsets market size will surge to $250 billion by 2050.

Fostering Efficient Carbon Markets

Under UAE’s latest climate plan, the Gulf nation highlighted that while it focuses on meeting climate targets through domestic reduction efforts, it also “reserves the right” to tap into carbon offsets markets as specified in Article 6 of the Paris Agreement.

Reflecting the Middle East nation’s commitment, the Chairperson of the UAE Carbon Alliance, Khalifa Al Nahyan, said during the announcement:

“As we navigate the climate crisis, carbon markets stand as a pivotal tool in our decarbonisation journey… Through this pledge, we hope to foster more integrated and efficient carbon market mechanisms between our two regions.”

She also noted that their collaboration with ACMI provides buyers in the UAE and the wider region access to high-quality African carbon credits. As such, their mega deal will unlock the region’s carbon credit potential while supporting sustainable investment with long-term climate impact. 

On their end, the ACMI CEO, Paul Muthaura commented that the UICCA’s $450M pledge shows the potential of international cooperation to tackle climate change. 

He further noted that together, they “aim to create a sustainable, transparent, and equitable carbon market ecosystem in Africa”. This, in turn, can help drive a significant positive impact for the region and the world. 

The Emirati government also announced plans to invest $54 billion by 2030 in renewables to meet the rising energy demand and achieve its 2050 net zero goal.

The UAE alliance is not the only buyer with a keen interest in African carbon credits. 

Another company created by a royal family member of Dubai, Blue Carbon, also has inked agreements with African nations to manage a vast span of forests to produce carbon credits from their conservation and protection activities. The company will sell those offsets to countries looking to use carbon credits as a solution for their climate targets. 

Turning Africa As Hub for Climate Investments, Not Disasters

African nations find carbon credits and similar market-driven financial mechanisms are crucial tools to attract funding from richer countries. 

Currently, the ACMI’s Advance Market Signal manages to collect around $200 million for buying African carbon credits by 2030. Major signatories under the initiative are Vertree, Standard Chartered, ETG, and Nando’s, among others. 

Nigeria alone can generate over 30 million tons of carbon credit each year by the end of the decade. That means the African nation can produce over $500 million a year through the sales of carbon offsets. 

Organizers of the Africa Climate Summit aim to reposition the continent as a hub for climate-related funding and actions, instead of being known as a region plagued by climate disasters like droughts and floods. 

In summary, the UAE Carbon Alliance’s monumental $450 million pledge to purchase carbon credits from the ACMI signifies a powerful stride in the global fight against climate change. This landmark commitment bridges nations and regions, fostering international cooperation to create a sustainable and efficient carbon market ecosystem.

The post UAE to Power Up African Carbon Credit Market with $450M Pledge appeared first on Carbon Credits.

Seafood Giant Sealord Invests $6M in NZ Forest Carbon Offset Project

/in /by

One of New Zealand’s largest seafood companies, Sealord, is going to invest almost US$6M in a forest carbon offset project involving Māori landowners.

Sealord partners with Te Arawa for over the next 10 years to transform underutilized land in Rotorua to native forest. The forest carbon offset program is courtesy of the partnership between Te Arawa Fisheries and New Zealand Carbon Farming (NZCF). 

The project will help offset some of Sealord’s carbon emissions, maximize the potential of marginal land, and create jobs. They also expect to see improved local environment conditions through the program, including water quality in Te Arawa lakes. 

A $9.5B Carbon Trading Opportunity for NZ

According to Te Arawa Fisheries CEO Chris Karamea Insley, the offset project showcases the potential opportunities that carbon trading provides. It also highlights the role of the country’s major companies to support the nation’s climate goals.  

New Zealand aims to reach net zero emissions by 2050, same as most countries seek.

Insley continues to say that:

“The Emissions Trading Scheme represents a $16 [NZD] billion economic opportunity for Māori – one which will be transformative for generations… to generate better economic, cultural, social and environmental outcomes…”

The agreement is Aotearoa’s (referring to NZ) leading climate change strategy, respecting the Māori principles, customs, and protocols. Māori are the second-largest ethnic group in New Zealand.

The fisheries organization further believes that the new initiative will help Sealord address its carbon pollution while driving financial benefits for the (Māori) clan. And by creating new jobs and improving water quality, it’s a win-win-win deal for everybody, Insley further noted.

Speaking for Sealord, their CEO Doug Paulin remarked that the carbon offset project supports the company’s sustainability efforts. It also helps them in meeting their carbon reduction goals. 

Sealord Carbon Emissions and Reduction Efforts

According to Paulin, Sealord has already lowered its total carbon emissions by around 24% since 2019. This reduction was achieved through various means, including fuel optimization, investing in new vessels, and cutting use of fossil fuels in land-based operations. 

Sealord New Zealand Operations Carbon Footprint

Vessel fuel is responsible for almost 94% of the Sealord’s carbon emissions. And since its baseline year (2019), the company was able to remove only over 25,200 tonnes of CO2e (equivalent) from its NZ business operations. That effort translates to removing >5,000 cars off the road.

NZ’s seafood giant aims to reach net zero emissions by 2050. Apart from its NZ business, the company is also managing its carbon emissions from its aquaculture farms in Australia. Factoring its Australian operations footprint, Sealord’s total carbon emissions per scope is as follows:

Sealord Group Total Carbon Footprint

Majority of this footprint, 95%, is from NZ business operations. Fossil fuels burned by their fishing vessels account for more than 90% of the company’s scope 1 emissions. 

Sealord acknowledges that reaching their carbon emissions targets remains a challenge given the limited options available within their operations. This is where carbon offsets serve as the company’s final option in mitigating their climate impact, the CEO further noted. 

Specifically, Paulin said that while they’re waiting for new engine technology and fuel sources to be developed and viable:

“…we have made the decision that we must invest now to enable Sealord to have options in the future so we can meet our carbon commitments.”

They find that investing about $6 million in Māori-managed forests in New Zealand offers them a way to offset emissions. 

Forest Offsets Create Local Investment and Development

The New Zealand Carbon Farming will manage the forestry offset project and the physical planting of trees. As per the organization’s director, the carbon offset deal offers opportunities for tackling climate change and biodiversity loss issues collaboratively.  

It also raises the chance to manage a forestry project that aligns with Mātauranga Māori or Māori knowledge in establishing best-practice for forest management. 

The Māori people have extensive experience in nurturing exotic or native crops and transitioning them to a biodiverse native environment. So, enlisting their help and support would be important in the project.

The forest carbon sequestration will also unlock new doors for local development and investment, NZCF further noted. 

The carbon offsets, also known as carbon credits, will provide revenue streams for the developer and the local community involved. In this case, the Māori tribe. Each carbon offset credit represents a tonne of carbon removed or sequestered through trees, or any other element.

Despite current criticisms thrown at nature-based carbon offsets, the partnership between Sealord and Te Arawa shows that large companies continue to find these offsets a sound and reliable option for their climate pledges. It further demonstrates that it’s possible for large businesses and local tribe landowners to work together to bring positive impact for the people and the planet. 

The post Seafood Giant Sealord Invests $6M in NZ Forest Carbon Offset Project appeared first on Carbon Credits.

Sailing Green With Sunreef’s Zero-Emission Hydrogen Superyacht

/in /by

Sunreef Yachts gave seafarers a better look at its revolutionary Zero Cat concept, a catamaran that sails on hydrogen and produces its own power. 

Sunreef Yachts is leading the market for semi-custom luxury catamarans while establishing itself as a key player in eco-friendly and sustainable yachting. The Polish yard first teased sailors with its hydrogen and solar powered catamaran last July. 

Carbon-Free Luxury Sailing

Yachts have long been the symbols of the luxurious lifestyle of the rich and wealthy. But as concerns about climate change continue to intensify, questions arise on how yachts impact the environment. 

A superyacht like the Zero Cat is usually defined as a privately owned vessel with at least 78 feet in length. And there are over 9,300 of these vessels sailing on the oceans that’s valued at more than $54 billion. 

Along with ships, superyachts contribute significantly to carbon dioxide emissions, which are often overlooked as they’re released at sea. 

According to industry data, a superyacht emits more than 7,000 tonnes of CO2 a year – considering it has a helicopter pad, pools, and submarines. To put that in perspective, the emission is over 1,500x more than how much a family car emits. 

With this data, maritime construction yards are also put under the spotlight by environmentalists to do something about their pollution. 

Sunreef acted fast by introducing its revolutionary superyacht concept – the Zero Cat. It just released the first renders of this highly awaited multihull. 

Zero Cat is a 90-footer yacht that is capable of producing its own fuel while sailing on the high seas for “unlimited autonomy.” It sports sleek and clean lines as common with Sunreef models but features a more sculpted stern. 

The concept yacht has stairways at the back of each hull, leaning toward the water, and a wraparound lounge at the outside helm. It also appears to have an alfresco lounge.

With this sleek superyacht design, Sunreef’s goal is to develop a sustainable sailing yacht with self-sufficient and unlimited range non-sail propulsion. 

At the heart of this zero-emission luxury catamaran is the green energy that sets it apart from other superyacht models. 

Zero-Emission and Safe Hydrogen Fuel Cell 

According to the yard, Zero Cat runs on an engine that uses a hydrogen fuel cell which powers the superyacht. It also comes with a reformer that can transform methanol into hydrogen.

Image source: Sunreef Yachts website

The fuel-cell system producing clean energy will electrically power the propulsion as well as the hotel load, Sunreef said. With this green technology, the catamaran will generate no carbon emissions and oxides.

Without an engine powered by burning oil, the superyacht will also sail with little noise and vibrations for a quiet and smooth ride. 

What’s more unique about Zero Cat is its ability to create additional green energy through its hydro generators and solar cells, which Sunreef refers to as a “solar skin”. 

The solar skin is not unique to the concept yacht but has been on Sunreef’s other models. It’s wrapped around the superyacht’s bodywork and can continuously produce solar energy so long as the sun shines. 

There’s also a bonus in sailing with Zero Cat: no need for high-pressure hydrogen storage on board. It means yachting would be safe, as opposed to the hydrogen stigma created by the 1937 Hindenburg crash.

And that stigma seems to be erased now that hydrogen fuel cells are hitting the market big time. 

Not only is the hydrogen-powered system getting attention in maritime but is also gaining traction in road fleets.

A leading company focusing on zero-emission vehicles, First Hydrogen Corp., shocked the market with its unbeatable fuel-cell EV (FCEV) trial results. The company’s FCEV vans trial with SSE Plc cleared 630km of range, almost double that of traditional EVs. The hydrogen vehicles also boast a 5-minute refuel time, similar to gas-powered vehicles. 

With its massive success in the first trial, First Hydrogen will open up fleet trials to additional commercial opportunities. This is in response to growing interests from parcel delivery or logistics companies wanting First Hydrogen’s FCEV for express deliveries. These operation trials will start soon late Qtr 3 and Qtr 4 this year. 

The demand for zero-emission vehicles and vessels has started to spike as governments and companies worldwide are racing to net zero emissions. And hydrogen fuel cells offer a promising solution for a cleaner and greener power source.

Sunreef Yachts still has a lot to do before its Zero Cat concept becomes a real superyacht sustainably sailing. But by combining hydrogen energy and other renewable power sources on board the yacht, it holds the promise for a luxurious but carbon-free getaway on the sea.

Disclosure: Owners, members, directors and employees of carboncredits.com have/may have stock or option position in any of the companies mentioned: FHYD

Carboncredits.com receives compensation for this publication and has a business relationship with any company whose stock(s) is/are mentioned in this article

Additional disclosure: This communication serves the sole purpose of adding value to the research process and is for information only. Please do your own due diligence. Every investment in securities mentioned in publications of carboncredits.com involve risks which could lead to a total loss of the invested capital.

Please read our Full RISKS and DISCLOSURE here.

The post Sailing Green With Sunreef’s Zero-Emission Hydrogen Superyacht appeared first on Carbon Credits.