A commodities trading major is stepping deeper into long-duration climate assets in Africa, with a woodland restoration platform targeting at least $1 billion in lifetime investment and positioning voluntary carbon markets as a core source of financing for ecosystem recovery.

An alliance supported by Trafigura has selected its first four carbon removal projects under the Miombo Restoration Alliance, a public-private initiative working with governments across central and southern Africa. Together, the initial projects cover roughly 675,000 hectares of degraded woodland and are expected to remove more than 50 million tons of greenhouse gas emissions over their operating lives.

The alliance was launched during Climate Week NYC in 2024 and focuses on restoring Miombo woodland ecosystems, which support more than 300 million people across the region but are under increasing pressure from deforestation, land conversion, and climate variability.

Carbon Markets as a Long-Term Financing Mechanism

The Miombo Restoration Alliance reflects a broader shift toward using carbon markets to mobilize private capital in regions where concessional climate finance and development aid are increasingly constrained. Rather than relying on short-term funding, the model aims to generate durable revenue streams through the sale of verified carbon removal credits.

Trafigura has positioned carbon markets as a central pillar of the strategy, with early-stage capital intended to catalyze additional private investment. The initiative is being structured with support from the International Conservation Caucus Foundation and Conservation International, which are coordinating technical development, stakeholder engagement, and project governance. Over time, Trafigura plans to syndicate risk and capital across a wider group of investors.

For participating governments, the approach offers a way to monetize natural capital while building domestic carbon market capabilities aligned with national climate commitments and emerging Article 6 frameworks.

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Revenue Sharing and Local Economic Participation

A defining feature of the selected projects is their revenue-sharing structure. Agreements have been designed to distribute proceeds among governments, local communities, and smallholder farmers, with local stakeholders expected to receive between 10 percent and 60 percent of revenues depending on project design.

Around 100,000 community members and farmers are expected to participate directly across Mozambique, Zambia, Tanzania, and Malawi. By linking restoration outcomes to income generation and rural livelihoods, the alliance aims to improve the long-term political and social durability of large-scale land use programs.

One of the largest projects is based in Malawi and spans more than 550,000 hectares, supported by one of Africa’s largest native species nurseries. In Zambia, an agroforestry-focused initiative is expected to rehabilitate degraded farmland while improving productivity and resilience for approximately 45,000 farmers.

Credit Quality, Pricing, and Market Impact

The carbon credits generated by the projects are expected to be positioned within the higher-integrity segment of the voluntary carbon market. Pricing will depend on verification standards, permanence safeguards, and the strength of co-benefits such as biodiversity and community development.

High-quality removal credits in comparable projects have traded above $50 per ton. At that price level, total credit value across the four projects could exceed $2.5 billion over their lifetimes, representing a meaningful expansion of global supply for nature-based carbon removal at scale.

Trafigura is expected to play a role in downstream credit marketing and distribution, potentially linking supply to corporate Scope 3 strategies and sovereign or multilateral purchasing programs. Future project pipelines could extend into Angola, Botswana, Namibia, Zimbabwe, the Republic of Congo, the Democratic Republic of Congo, and South Africa, significantly increasing the geographic footprint of the alliance.

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Strategic Signals for Corporates, Investors, and Policymakers

For corporates pursuing net-zero strategies, the alliance highlights intensifying competition for high-quality removal credits as scrutiny around integrity and permanence continues to rise. Securing long-term access to credible supply is becoming a strategic consideration rather than a secondary sustainability choice.

For investors, the initiative illustrates a hybrid climate infrastructure model that blends commodity market expertise with nature-based asset development and sovereign partnership risk. The scale and duration of the projects place them closer to infrastructure investments than traditional conservation initiatives.

For policymakers, the Miombo Restoration Alliance offers a template for aligning land restoration, rural development, and climate finance within national strategies. As private capital takes on a larger role in climate mitigation, projects of this nature may shape how emerging economies convert ecosystem restoration into bankable, long-term climate assets.

Over the coming decade, large-scale woodland restoration in Africa is likely to become not only an environmental priority, but a strategic component of global decarbonisation supply chains.

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