DEADLINE: 12TH APRIL, 2023
SUSTAINABLE ENERGY FOR ALL (SEFORALL)
REQUEST FOR PROPOSAL FOR CONSULTANCY SERVICES FOR THE DEVELOPMENT OF CARBON MARKET ACTIVATION PLANS
(1) CONTEXT
With the Paris Agreement process setting increasingly stringent goals to reduce global greenhouse gas emissions, it has become critical for governments and non-State actors to focus on direct decarbonization. To complement these efforts, Voluntary Carbon Markets (VCMs) are playing a more significant role, with the potential for VCM expansion to deliver on broader development goals by channelling investment to credible carbon mitigation projects with high social and environmental co-benefits (e.g., creating jobs, expanding energy access, fossil fuel generators decommissioning, improving livelihoods, protecting biodiversity, etc.).
Globally, VCMs grew at a compound annual rate of over 30 percent from 2016 to 2021. Last year alone saw a 50 percent increase in real demand, and the value of carbon credit retirements is estimated to be over USD 700 million. Demand for African-origin carbon credits has been growing at a compound annual rate of 36 percent, but from a low base and the market is well below its potential level. Out of total credits issued worldwide between 2016 and 2021, only about 11 percent stem from African countries, and the bulk of these come from a few large projects. It is estimated that Africa currently generates only 2 percent of its annual carbon credit potential.
Pursuant to the above, and with the aim of dramatically expanding Africa’s carbon market potential, a Steering Committee of African leaders, development partners, philanthropies, and carbon market experts led the creation of the Africa Carbon Markets Initiative (ACMI) in COP27. This was underpinned by the collaborative efforts by Sustainable Energy for All (SEforALL), The Global Energy Alliance for People and Planet (GEAPP), Rockefeller Foundation, and the UN Economic Commission for Africa; and with the support of the UN Climate Change High Level Champions.
ACMI aims to address key challenges and build the foundations for a thriving Voluntary Carbon Market ecosystem in Africa by 2030. In line with the above, ACMI’s ambition includes four core objectives:
(1) Grow African carbon credits retirements ~19-fold from ~16 MtCO2e retired in 2020 to ~300 MtCO2e per annum by 2030 and up to 1.5-2.5 GtCO2e by 2050;
(2) Create or support 30 million jobs by 2030 and more than 100 million jobs by 2050 through carbon projects development, execution, certification, and monitoring;
(3) Raise the quality and integrity of African credits to mobilize up to US$6 billion by 2030 and more than US$100 billion per annum by 2050;
(4) Ensure equitable and transparent distribution of carbon credit revenue, with a significant portion of revenue going to local communities.
To achieve the aforementioned objectives, the African Carbon Market Initiative (ACMI) is governed by a Roadmap which details the opportunities that exists in the creation of Voluntary Carbon Markets in Africa as well as the challenges that should be overcome. For the opportunities, there are significant economic benefits, and de-carbonization pathways, that can potentially put the immensely growing carbon markets at the centre of the transformation of development finance in Africa, and beyond. In terms of challenges, the African carbon market scene is characterized by fragmented projects and carbon generating assets, a dearth of large-scale developers capable of mustering sufficient capital and expertise, and a complex/uncertain regulatory landscape.
Thus, the ACMI Roadmap delineates 13 Action Programs that would address the key opportunities and challenges across the VCM Value Chain in Africa. More specifically, the Action Programs revolve around three main themes, namely (1) Supply (generation) and Standards, (2) Intermediation and Financing, and (3) Demand.
Objectives
SEforALL is seeking proposals from experienced and qualified consultants to help develop and implement Carbon Market Activation Plans in three countries in Africa (e.g., Rwanda, Nigeria, and Ghana). The purpose of the plans is to identify strategies that will enable the countries in Africa effectively finance their energy transition by way of building foundations for a thriving voluntary carbon market ecosystem.
