Carbon credit transaction deal for electric mobility in Africa signed

Carbon credit transaction deal for electric mobility in Africa signed

Mauto, a leading electric two-wheeler in Africa, has announced the first closing of a $5m transaction in the voluntary carbon offset market. The funding agreement with Aera, one of Africa’s leading carbon credit traders, and myclimate, a Swiss nonprofit climate protection organisation committed to transparency in carbon footprint measurement, will be spread over the next three years.
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“There are effective ways to finance the ecological transition in Africa and to make it affordable and sustainable. No population will accept this without strong support. That’s the whole point of this operation,” insists Shegun Adjadi Bakari, CEO of Mauto.

With COP27 taking place in Egypt, the signing of this $5m deal – one of the largest in Africa in terms of carbon credits for electric mobility – will help to immediately meet the continent’s commitments to a sustainable energy transition.

“This agreement is proof that Africa is in an offensive position on energy transition and that industrial players are ready for innovative partnerships “, explains the director.

The contract covers the reduction of emissions generated by Mauto, which plans to deploy over 2 million electric motorbikes in Africa by 2030.

The company has been present in Benin and Togo for four months now with 2,700 electric motorbikes on the road. The brand will be rolled out before the end of the year in Rwanda. By 2030, the aim is to be operational in over ten countries across Africa.

Addressing the challenge of electrification

The closing of the transaction, while accelerating the deployment of electric two-wheelers in Africa, will also address the challenge of electrification.

Approximately 80% of the electricity that will be used to charge the electric vehicles will come from photovoltaic charging stations that will be installed as the roll-out progresses.

Since its launch, the company has been dedicated to urban, ecological and affordable mobility and is working towards building its own carbon-neutral assembly plants to be ready by 2024. In order to certify the achievement of its environmental and social commitments, the company intends to obtain the Sustainable Development Verified Impact Standard (SD VISta) label issued by Verra.

Shegun Adjadi Bakari, chief executive officer of Mauto and partner at the African Fund for Transformation and Industrialization Fund (ATIF), says: “There are effective ways to finance the ecological transition in Africa and to make it affordable and sustainable. No population will accept this without strong support. That’s the whole point of this operation.”

“With this transaction, Mauto hopes to demonstrate its ability to rapidly execute its global green transition strategy in Africa and its power to change everyday life in African cities by reducing traffic pollution, a major public health concern for urban populations.”

“It is a great pleasure and honour to be the carbon finance pioneer for Africa’s largest electric motorbike programme. We are pleased to generate revenue from carbon credits to reduce the cost of leasing electric motorbikes and to help Mauto raise additional funds to accelerate its rollout in Africa,” says Fabrice Le Saché, president of Aera Group.

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