These credits will be generated through land restoration and protection efforts, and subsequently, the company plans to sell them to major polluters for use in offsetting their emissions.
This arrangement mirrors a series of similar contracts with other African nations, including Liberia, Tanzania, Zambia, and Zimbabwe, where Blue Carbon secured rights to 7.5 million hectares, amounting to one-fifth of Zimbabwe’s total landmass.
These agreements collectively result in Blue Carbon gaining significant control over a total land area of 24.5 million hectares, which raises concerns about potential violations of customary land rights held by local communities.
Furthermore, the FOC with Kenya follows closely on the heels of a $1.5 billion memorandum of understanding signed by Blue Carbon’s parent company, Global Carbon Investments, with Harare. This memorandum is described in a press release as “pre-financing for carbon credits in Zimbabwe.”
Carbon credits enable companies to emit a specific quantity of carbon dioxide or other harmful gases, with one credit representing one ton of emissions. They are typically generated through initiatives like tree planting or the adoption of cleaner cooking fuels.
Supporters of carbon credits argue that they offer a means for companies to achieve carbon-neutral status, while critics view them as potentially granting oil producers a license to continue polluting.
Saudi Arabia is becoming an increasingly significant participant in Kenya’s emerging voluntary carbon market. In the previous year’s Future Investment Initiative forum, an auction took place where 1.4 million tons of carbon offsets were traded, with Saudi Aramco, the world’s largest oil producer and a participant in the import credit scheme, serving as the primary purchaser.
Carbon offsets, distinct from carbon credits, are generated when companies or individuals finance projects aimed at reducing greenhouse gas emissions in other locations.
Kenya received $13.79 million (approximately Sh2.07 billion) from 16 Saudi firms, including Aramco and the Saudi Electricity Company, through an auction organized by Saudi Arabia’s Regional Voluntary Carbon Market Company (RVCMC).
Dr. Ruto mentioned, “A portion of the proceeds from these credits has been invested toward funding clean cooking and solar home systems. The dividends of the emerging circularity exemplify the vision of the global conservation movement.” He made this statement during the launch of the African Carbon Market Initiative at COP27 last year.
The new carbon credit contract comes just ahead of the UN Climate Summit, COP 28, scheduled to occur in Dubai in November. Carbon credits are expected to be a prominent topic of discussion at this event.
The global voluntary carbon offset market, valued at $2 billion, enables carbon emitters to compensate for their emissions by purchasing credits from projects focused on reducing emissions, primarily in the realm of forest conservation.
Notably, Blue Carbon’s press release doesn’t provide extensive details regarding the terms of these agreements. However, it does emphasize that the collaboration aims to “reduce emissions from various environmental sectors, such as forest areas.” The agreement’s primary objective is to “generate essential climate financing to advance climate change mitigation and adaptation efforts, promote sustainable development, and offer significant support to local communities.”
Despite its relatively recent establishment, Blue Carbon lacks experience in managing carbon offset projects. The company is led by Sheikh Ahmed Dalmook Al Maktoum, who has close connections to the UAE royal family, a significant player in the oil and gas industry. This has raised concerns that Blue Carbon’s contracts could potentially be used to offset the emissions of the United Arab Emirates.
