- Trafigura-backed Miombo Restoration Alliance selects first four projects covering 675,000 hectares with potential removal of 50 million tons of emissions
- Carbon credits from projects could exceed $2.5 billion in market value if priced above $50 per ton, reinforcing voluntary carbon market supply
- Revenue-sharing structures with African governments and communities position projects at the intersection of climate finance, land governance, and rural economic development
A global commodities trading powerhouse is moving deeper into long-duration climate infrastructure across Africa, with a woodland restoration platform targeting at least $1 billion in lifetime investment and positioning carbon markets as a primary financing engine for ecosystem recovery.
A plan backed by Trafigura has identified four initial carbon removal projects under the Miombo Restoration Alliance, a public-private partnership working with governments across central and southern Africa. Together, the projects span 675,000 hectares of degraded woodland and are expected to remove more than 50 million tons of greenhouse gases over their operational lifetime.
Launched during Climate Week NYC 2024, the alliance focuses on restoring Miombo woodland ecosystems that support more than 300 million people but face accelerating pressure from deforestation, land conversion, and climate volatility.
Carbon Markets As A Strategic Capital Channel
The initiative reflects a broader shift across Global South economies toward locally anchored carbon credit supply as concessional climate finance and development aid flows become less predictable.
“We really see the carbon markets as critical, as being able to channel private sector capital in a way that makes these projects long-term and sustainable,” Hannah Hauman, Head of Carbon Trading at Trafigura told Reuters.
The projects are being convened and structured with support from the International Conservation Caucus Foundation and Conservation International, which will coordinate stakeholders and technical development. Trafigura is expected to anchor early financing while working to syndicate risk across additional private capital partners.
For governments, the model offers a pathway to monetise natural capital assets while building domestic carbon market infrastructure aligned with national climate commitments and Article 6 market frameworks.
High-Quality Credits And Revenue-Sharing Structures
The alliance has structured revenue-sharing agreements involving governments, local communities, and smallholder farmers across Mozambique, Zambia, Tanzania, and Malawi. Depending on project structure, local stakeholders are expected to receive between 10% and 60% of generated revenues.
Approximately 100,000 community members and farmers are expected to participate directly, linking restoration outcomes to rural livelihoods and strengthening political durability of long-term land use programs.
Among the selected projects is a Malawi restoration program covering more than 550,000 hectares and supported by one of Africa’s largest native species nurseries. A parallel agroforestry initiative in Zambia is expected to rehabilitate degraded agricultural land while improving productivity and resilience for roughly 45,000 farmers.
RELATED ARTICLE: Trafigura Partners with 1PointFive for Groundbreaking Carbon Removal Project
Credit Pricing And Market Implications
Credit pricing will vary based on verification methodology, permanence guarantees, and co-benefit metrics, but early indications suggest positioning in the premium voluntary carbon credit segment.
Comparable high-integrity removal credits have traded above $50 per ton. At that level, total value across the four projects could exceed $2.5 billion across their lifespan, materially expanding global supply of high-quality removal credits at scale.
Trafigura is expected to support downstream credit marketing and distribution, potentially integrating supply into corporate Scope 3 strategies and sovereign offset purchasing programs.
Future project pipelines may extend into Angola, Botswana, Namibia, Zimbabwe, Republic of Congo, Democratic Republic of Congo, and South Africa, significantly expanding regional carbon supply corridors.
What Executives And Investors Should Watch
For corporates, the alliance highlights increasing competition for high-quality removal credits as net-zero timelines compress and integrity scrutiny intensifies across voluntary markets.
For investors, the structure demonstrates a hybrid climate infrastructure model blending commodity market expertise, nature-based asset development, and sovereign partnership risk frameworks.
For policymakers, the initiative illustrates how nature restoration projects can anchor domestic carbon markets while supporting rural development and biodiversity targets under national climate strategies.
Over the next decade, projects like those under the Miombo Restoration Alliance may shape how emerging markets convert natural ecosystems into bankable climate assets. As climate finance increasingly shifts toward private capital mobilisation, African woodland restoration is becoming not just an environmental priority, but a strategic financial frontier in global decarbonisation supply chains.
Follow ESG News on LinkedIn
The post Trafigura-Backed Alliance Targets $1 Billion Investment In African Carbon Removal, Woodland Restoration appeared first on ESG News.
