Trafigura-Backed Alliance Targets $1 Billion Climate Finance Push for African Woodlands

A global climate finance initiative backed by energy trader Trafigura has unveiled its first four carbon removal projects in Africa, committing at least $1 billion over 40 years to restore degraded Miombo woodlands across southern and central Africa.

The projects, developed under the Miombo Restoration Alliance, cover 675,000 hectares in Malawi, Zambia, Tanzania, and Mozambique and are expected to remove more than 50 million tonnes of carbon dioxide over their lifetime.

Launched at New York Climate Week 2024, the alliance brings together governments from 11 African countries, private investors, and conservation organizations to unlock large-scale nature-based climate finance.

Miombo woodlands support the livelihoods of more than 300 million people, yet face accelerating degradation driven by deforestation, climate stress, and unsustainable land use. The alliance aims to reverse these trends by generating high-quality carbon credits capable of attracting long-term private capital into restoration, agroforestry, and community-led land management.

“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,” said Hannah Hauman, Head of Carbon Trading at Trafigura.

Beyond emissions removal, the projects are structured to deliver direct financial returns to local stakeholders.

Around 100,000 community members and farmers, alongside the governments of the four host countries, will participate in revenue-sharing arrangements ranging from 10% to 60%, depending on project design.

Among the flagship initiatives is a 550,000-hectare restoration project in Malawi, anchored by one of Africa’s largest native species nurseries, and an agroforestry programme in Zambia expected to benefit 45,000 farmers by rehabilitating degraded land while improving incomes and climate resilience.

The carbon credits generated are expected to be marketed to companies and governments seeking to meet climate targets.

With comparable high-integrity credits trading at above $50 per tonne, the four projects could generate more than $2.5 billion in credit value over their lifespan, positioning them as a significant source of blended climate finance.

As concessional funding and traditional aid flows tighten, African countries are increasingly turning to carbon markets to mobilise private investment for climate mitigation and adaptation.

Trafigura said it plans to support the sale of credits from these projects and expand the pipeline across other alliance members, including Angola, Botswana, Namibia, Zimbabwe, the Democratic Republic of Congo, and South Africa.