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Large portions of African forests are being sold in large-scale agreements for carbon offsetting, totaling an area larger than the United Kingdom. These deals, negotiated by a relatively unknown member of Dubai’s ruling royal family, involve up to 20% of the countries involved. This has sparked concerns about a potential “scramble for Africa” and its carbon resources.
Sheikh Ahmed Dalmook al-Maktoum, the chairman of Blue Carbon, a company that is only one year old, recently announced plans for partnerships with African nations. These nations are home to important wildlife sanctuaries and areas of high biodiversity. The land involved in these deals has the potential to generate billions of dollars in offsetting revenue. It is worth noting that the sheikh does not have any prior experience in nature conservation projects.
Up to this point, contracts have been established for approximately 20% of Zimbabwe, 10% of Liberia, 10% of Zambia, and 8% of Tanzania, which together make up an area the size of the United Kingdom. In October, Blue Carbon finalized a new agreement for a large number of hectares of forest in Kenya. The company has also been in negotiations for a deal with Pakistan. Additional agreements are anticipated in the upcoming months. The carbon credits acquired through these deals could potentially be purchased by significant polluting companies to contribute towards their objectives under the Paris agreement.
Blue Carbon is located in the United Arab Emirates and the Cop28 summit will commence this week. The company intends to use credits from their programs as national-level contributions to the 2015 Paris agreement, according to a statement.
Although there have been worries expressed about the contracts, as well as the sheikh’s past business dealings, such as his involvement in selling the Russian Sputnik V vaccine at an inflated price during the pandemic and his association with an Italian fugitive who is listed as a Blue Carbon advisor.
The contracts are being made in response to the growing concern over whether carbon markets can adequately support efforts to combat climate change while also safeguarding biodiversity and community rights.
According to Axel Michaelowa, a carbon markets specialist at the University of Zurich, carbon markets play a crucial role in directing resources towards projects that may not have been pursued otherwise. However, if the regulations are loosely interpreted, there is a risk of generating poor quality credits, which could significantly damage the credibility of the market.
Sheikh Ahmed declined to be interviewed for this article through his office. Blue Carbon said its “vision with these projects is not only to accelerate global climate action but also to tackle crucial environmental challenges at the local level thereby ushering in community benefits and advancing sustainable development in the countries involved”.
Large portions of land are being confiscated.
Although there is limited information available about the Blue Carbon deals, the Guardian has interviewed individuals involved and has examined a draft contract from Liberia in July. According to the contract, the UAE company would have the sole authority to sell carbon credits for a period of 30 years, receiving 70% of the profits from the sales. This arrangement is in accordance with the guidelines set forth in the Paris agreement, which prohibit countries from utilizing these credits towards their own climate targets.
Some individuals involved in these transactions emphasized the importance of carbon markets in providing necessary financial aid to African nations, where alternative sources of climate funding have been inadequate. Nonetheless, there were also concerns expressed, as the scale of these land deals has been likened to a modern-day rush for control over Africa.
According to Alexandra Benjamin, a campaigner for forest governance with the NGO Fern, large areas of land in Africa are being taken over by Blue Carbon through long-term agreements. This puts the land, which is essential for the livelihood of millions of vulnerable communities, at risk. At the upcoming Cop28 meeting, countries will discuss the guidelines for carbon offsetting. Benjamin believes that these agreements should be recognized as land grabs and that forest communities need to give their informed consent before any deal is finalized.
Numerous African heads of state are strong proponents of utilizing carbon markets as a means of funding efforts to combat climate change, after experiencing broken commitments regarding other financial resources. Kenyan president William Ruto remarked that the continent’s carbon reserves are a valuable economic asset.
Blue Carbon stated that their carbon projects would have a positive impact on communities and would adhere to strict auditing standards in the markets they operate in. They emphasized the importance of obtaining free, prior, and informed consent as a central component of their project development strategy, highlighting the contrast between the voluntary carbon market, where human rights issues have been a significant issue, and compliance markets.
NGOs in Liberia have expressed concerns regarding the potential impact of an agreement on communities’ land rights and people’s ability to access the forest, which is crucial for their survival.
David Obura, the original leader of Cordio East Africa and also in charge of the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES), stated: “Out of all the things nature provides for us, carbon is one of the few that can easily be turned into money. This means that anything that cannot be monetized gets left out or overlooked. There is a significant risk of certain people being excluded and losing access and rights.”
Potentially, the earnings generated from the credits could support environmental adaptation and preservation efforts in underdeveloped nations. This would safeguard both carbon storage and diverse ecosystems. While the Blue Carbon initiatives have the potential to be significant, they still need government approval to be included in official carbon trading through article 6 of the Paris agreement.
The emissions trading program may involve major polluting nations like the United Kingdom, Saudi Arabia, or China purchasing emission removals or reductions from developing countries in order to fulfill their own targets through offsets. The United Arab Emirates has positioned itself as a top buyer of African carbon credits, committing to purchasing $450 million USD ($356 million GBP) worth of African credits by 2030 at the Africa Climate Summit held in September.
According to recent analysis, the United Arab Emirates ranks third in terms of plans for expanding its oil and gas industry. This places it behind only Saudi Arabia and Qatar in terms of projected growth.
In September, Blue Carbon and First Abu Dhabi Bank, the biggest in the UAE, reached an agreement to fund investments in forest carbon projects. The UN Development Programme is currently discussing with the company on how to implement these plans.
Blue Carbon stated its dedication to strict regulations regarding appropriate methods for carbon projects and pledged to adhere to the guidelines established by governments at Cop28. The company also noted their team’s past success in developing similar projects.
Angela Giuffrida and Pjotr Sauer contributed to the reporting of this information.
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Source: theguardian.com
