BACKGROUND

Mozambique can benefit from the worldwide desire to limit carbon dioxide emitted into the atmosphere. Industries that burn high rates of coal, oil, and other fuels release carbon dioxide into the atmosphere, which leads to higher temperatures and extreme weather. In response, governments around the world are encouraging companies to reduce their carbon emissions. One way of doing this is to require companies to store one ton of carbon for every ton of their emissions. This presents an opportunity for Mozambique, which can store vast amounts of carbon in its extensive tropical forests. The carbon capture industry is set to grow exponentially, and this new award will position Mozambique as an important player in the market. As a new area, however, carbon offset deals are complex and difficult to structure.  

APPROACH  

PLANETA, implemented by CrossBoundary LLC., will provide Mozambican private and public partners with the expertise to make the connections and implement carbon offset deals. PLANETA will help around 10 Mozambican projects gain access to the international market for voluntary carbon offsets, with a focus on community-based nature conservation. Specifically, PLANETA will facilitate carbon market access, help negotiate pre-purchase agreements of carbon credits, and help structure the accompanying project finance for ecosystem restoration projects in the target communities. The activity aims to enhance local businesses’ engagement in carbon markets while facilitating diversified and equitable economic growth. Selected projects will have a strong benefit-sharing component and will create significant opportunities, particularly for young people and women.

ANTICIPATED RESULTS 

• Providing investment advisory services to ~10 firms/projects, helping inform partners, providing credibility to the investment through qualified investment analysis and due diligence, preventing conflicts of interest, and ensuring due consideration of proposals

• Developing a capital map to identify prospective investors and understand their motivations, investment criteria, and views on risks and opportunities in Mozambique

• Developing a carbon finance playbook that offers a step by step guide to carbon project developers on how to design, finance, and implement a carbon project.