A Trafigura-backed initiative is preparing to invest more than $1 billion in four carbon removal projects across central and southern Africa as part of a long term plan to restore degraded woodlands and generate carbon credits.
Hannah Hauman, Head of Carbon Trading at Trafigura, said the projects are the first selected under the Miombo Restoration Alliance, a public private initiative working with governments across the region.
The projects are expected to run for 40 years and focus on restoring woodlands that have been affected by deforestation and unsustainable land use.
The four projects cover about 675,000 hectares across Mozambique, Zambia, Tanzania and Malawi.
Over their lifetime, they are expected to remove more than 50 million tons of climate damaging gases from the atmosphere.
Trafigura is the main financial backer of the alliance and plans to support both the early development and long term investment needs of the projects.
On its part, the company also plans to bring in additional partners to expand funding and scale the initiative across more countries.
“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,” Hauman said.
The Miombo Restoration Alliance was launched during New York Climate Week in 2024. It focuses on restoring Miombo woodlands, a vast ecosystem that supports more than 300 million people across Africa but continues to face pressure from deforestation, climate change and land degradation.
Why the Miombo woodland matters
Miombo woodlands stretch across large parts of central and southern Africa and play a key role in local livelihoods, biodiversity and climate regulation.
Many rural communities depend on the ecosystem for farming, fuel and income, making its degradation a direct economic and social issue.
Countries across the Global South are increasingly turning to carbon markets to fund environmental protection as official development aid from wealthier nations declines.
Carbon credits allow governments and communities to attract private capital by monetising activities that remove or reduce greenhouse gas emissions.
Under the Miombo Restoration Alliance, non profit organisations including the International Conservation Caucus Foundation and Conservation International will convene participants and help develop the projects. These organisations will support planning, governance and engagement with local communities.
Trafigura expects the credits generated by the projects to be sold to countries or companies seeking to meet climate targets.
While prices will vary, similar high quality credits have previously sold for more than $50 per ton of carbon, which would equate to at least $2.5 billion across the four projects.
How communities and governments will benefit
Community participation is central to the design of the projects. About 100,000 community members, farmers and the governments of the four countries will take part in revenue sharing agreements linked to carbon credit sales.
Hauman said revenue shares will range from 10% to 60%, depending on the nature of each project and the level of local involvement. This structure is intended to ensure that financial benefits flow directly to communities responsible for maintaining restored land.
One of the projects involves restoring more than 550,000 hectares of woodland in Malawi. The site hosts one of the largest native species nurseries in Africa and is expected to play a major role in reforestation efforts.
Another project in Zambia focuses on agroforestry and aims to restore degraded land while supporting about 45,000 farmers.
The approach combines tree planting with agricultural production to improve soil quality and household incomes.
Beyond the initial four projects, Trafigura said additional carbon credits could later come from other alliance member countries, including Angola, Botswana, Namibia, Zimbabwe, Congo Republic, the Democratic Republic of Congo and South Africa.
