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Dubai company strikes $1.5 billion credits deal with Zimbabwe

Dubai-based company Blue Carbon has entered into a significant memorandum of understanding with Zimbabwe, aiming to generate carbon credits from a substantial portion of the African nation's vast landmass. The deal, announced in Harare, Zimbabwe's capital, is centred on forest protection and rehabilitation, marking Blue Carbon's latest venture in Africa following their ongoing efforts in Liberia.

Dubai company strikes $1.5 billion credits deal with Zimbabwe_View on Victoria falls_visual 1View on Victoria falls, Zimbabwe.

Blue Carbon's Chairman and a member of Dubai's royal family, Sheikh Ahmed Dalmook Al Maktoum, anticipates that this partnership could inject up to $1.5 billion in environmental finance into Zimbabwe. This is a notable development for Zimbabwe, which recently adjusted its regulations related to carbon credits. Initially, they sought to claim half of all revenue generated from such projects, causing concern among developers. However, the country has since revised this to a 30% share.

Carbon credits, each equivalent to one tonne of carbon dioxide emissions reduced or prevented, are sought after by emitters looking to offset their carbon footprints. Zimbabwe's close ties with the United Arab Emirates (UAE) play a significant role in this agreement.

Read more: Ultimate guide to Africa’s 47 afforestation and reforestation projects

With Blue Carbon overseeing projects covering nearly 20% of Zimbabwe's land, they will preserve forests in exchange for carbon credits to be sold on the global market. Blue Carbon, led by Sheikh Ahmed Dalmook Al Maktoum, has emerged as a major player in the carbon credit industry.

This deal represents Blue Carbon's latest move in Africa, where they have secured rights to develop carbon offsetting projects covering 24.5 million hectares of land across multiple countries, including Tanzania, Liberia, and Zambia.

This initiative aligns with global efforts to conserve nature, as companies and governments worldwide aim to offset their emissions through forest conservation projects. Blue Carbon's expansion in Africa showcases its commitment to environmental conservation and carbon reduction.

The partnership aims to bring substantial revenue to Zimbabwe's government, with a significant portion allocated to community engagement and local development. Zimbabwe's President, Emmerson Mnangagwa, expressed hope that the carbon credits sold overseas would help close the country's financing gap by approximately $200 million while contributing high-quality carbon credits to the international market.

Read more: Global investors unite to combat biodiversity loss, mobilising $23.6 trillion

This collaboration between Blue Carbon and Zimbabwe reflects a growing trend of environmental conservation initiatives driven by the private sector, governments, and international partnerships. It also marks a significant development in the run-up to the UN Climate Change Conference (COP28) hosted by the UAE later this year in November.

At DGB Group, our nature-based initiatives yield a multitude of advantages for both the environment and the communities they serve. These projects encompass the restoration of biodiversity, the preservation of ecosystems, and the provision of valuable resources. They restore degraded lands, enhance biodiversity, establish crucial habitats, and empower local communities by providing energy-efficient cookstoves and comprehensive training programmes. DGB's unwavering dedication to sustainable approaches is leading the path towards a more eco-friendly and biodiverse future, where nature thrives in perfect harmony with sustainability.

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