Mr. James Vener


This is an official funding.

African Carbon Asset Development Facility (ACAD)

Total Amount $87.1 million
Financing Mechanisms Carbon finance , Grant , Loan , Technical assistance
Qualifying Projects Mitigation, Energy , Energy Efficiency , Fuel Switching , Low-Carbon , Renewable Energy , Waste Management
Eligibility Projects must be located in sub-Saharan Africa and eligible for CDM investment.
Funding Objectives

Carbon offsets are a key tool for covering the costs of low-carbon infrastructure. However, despite the fact that it has a wealth of untapped carbon project opportunities that could potentially generate significant commercial and social dividends, Africa is home to only 2% of registered CDM projects. A major barrier has been the lack of financial skills and capacity within mainstream African investment institutions needed to identify, appraise, develop, and transact these projects.

The African Carbon Asset Development (ACAD) Facility is designed to help overcome these and other barriers currently prohibiting the African finance sector from playing a major role in the African carbon market. Taking a new approach towards African capacity and market development, ACAD is sharing costs and risks with regional banks in realising and replicating projects.

Financing Mechanisms

ACAD’s activities include carbon finance training for local finance institutions; technical support for project developers; and targeted grants and loans for replicable CDM projects that have a significant effect on sustainable development.

ACAD will help bankroll carbon projects by engaging local actors crucial to realising projects: financial institutions. By improving the ability of these institutions to identify, appraise, and transact viable carbon opportunities, ACAD will help to catalyse a more robust African carbon market. ACAD’s activities will also result in reduced costs. By building a portfolio of projects that are both pertinent and easy to replicate elsewhere in Africa, it will stimulate similar projects to follow the same approach, thereby decreasing the future costs of project development and investment mobilisation.

Application Procedures

ACAD has received over 70 high-quality project applications from sub-Saharan Africa, including proposals featuring innovative technologies for biomass, cook stoves, and renewable energy. Regional outreach and training events have been held in several African countries, including a carbon finance discussion forum for over 300 professionals from the African finance sector and eco-entrepreneurs.

Project proponents are encouraged to contact ACAD with the following documentation:

  • Draft project documentation (e.g., feasibility reports, CDM project idea note)
  • Letters of endorsement or approval from host countries
  • Financial models/business plans
  • Letters of interest from potential investors