FSD Africa Launches Carbon Accelerator Programme for the Environment (CAPE) to Unlock Finance for High-Integrity Nature-Based Carbon Projects in Africa
Nairobi, Kenya [01 November] – FSD Africa is proud to announce the launch of The Carbon Accelerator Programme for the Environment (CAPE), a pioneering initiative designed to catalyse investment into high-integrity nature-based carbon projects across Africa. CAPE addresses two critical challenges: the lack of investment flow into projects that tackle climate change and biodiversity loss, and the need to build confidence in Africa’s nature-based markets.
The programme aims to provide direct support to projects that have significant potential but are struggling to secure full funding. By leveraging a combination of high-quality carbon credits and biodiversity improvements, CAPE seeks to demonstrate that there is a viable commercial business case for investors while offering a solution to integrity challenges in nature-based markets.
CAPE will be delivered in partnership with Finance Earth, a leading independent impact investment advisory firm, as the implementing partner, and the Africa Natural Capital Alliance (ANCA), a collaborative coalition focused on mobilising private capital for nature-based solutions in Africa, as a core partner.
Nature-based carbon project developers are invited to register interest in the programme following this link, to receive an Expression of Interest form in the coming days. Following the selection process, CAPE will deliver project development funding and technical support to up to 5 projects for a year from Spring 2025.
Reshma Shah, Lead Carbon Markets, FSD Africa
“Having just returned from COP16 Biodiversity, the urgency of accelerating nature-based solutions that address both climate change and biodiversity loss is more evident than ever. CAPE, with its dual focus on carbon and biodiversity, offers the perfect platform for deepening our understanding of how to implement these solutions effectively. It not only highlights the importance of these initiatives but also showcases their investability, paving the way for impactful projects that can transform our relationship with nature.”
A new approach to nature-based carbon financing
CAPE’s unique approach targets projects that are technically feasible but have yet to reach financial close. Through the provision of transaction advisory services and technical project development support, CAPE will create demonstration cases to show how joint carbon financing and nature-positive ventures can be investable.
By integrating carbon credits with biodiversity conservation, CAPE addresses revenue issues in biodiversity projects and offers investors practical guidance on harnessing the potential of nature-based solutions. CAPE is positioned to demonstrate how these models can scale to meet investor demand for high-integrity projects.
Dorothy Maseke, Head of the ANCA Secretariat
“At ANCA, the launch of the Carbon Accelerator Programme for the Environment (CAPE) is a pivotal moment in advancing Africa’s nature-based markets and living to the principles and actions of the ANCA Nature Voices Pledge. CAPE reflects months of consultations with ANCA members and key stakeholders through FSD Africa’s work, aiming to tackle two core challenges: the limited investment flow and the confidence gap in Africa’s nature-based solutions. By partnering with FSD Africa and Finance Earth, we are supporting high-potential projects that struggle to secure full funding. CAPE will make a compelling case for investment in these vital markets, catalysing long-term support for sustainable projects across the continent.”
Building a market for high-integrity projects
One of the key features of CAPE is the creation of a “living lab”, where knowledge and best practices will be open sourced for the benefit of the wider market. This will provide a platform for developers to learn from peers who have successfully navigated similar challenges and will include templated guides and resources to help other projects advance towards financial close. By building this ecosystem, CAPE is ensuring that a pipeline of high-integrity nature-based carbon projects can be replicated and scaled.
Richard Speak, Managing Director, Finance Earth
“The launch of CAPE comes at a pivotal moment to mobilise the investment needed to tackle climate change and biodiversity loss across Africa. We are thrilled to partner with FSD Africa and ANCA to deliver CAPE, providing support in the critical phase of the journey to unlocking investment in high-integrity nature-based carbon projects. By working closely with project developers and openly sharing what works, we will not only create individual success stories – we’re aiming to build a community of practice that can accelerate financing for nature, climate and communities across Africa.”
Expected benefits of CAPE
Accelerated investment – by demonstrating the financial viability of projects that combine carbon credits and biodiversity conservation, CAPE will unlock new flows of capital into unfunded areas.
Increased project integrity – CAPE’s rigorous approach ensures that projects are of high integrity, addressing long-standing challenges in the carbon markets.
Market-building resources – the open-source nature of CAPE’s “living lab” will help replicate success and scale the market for nature-positive carbon projects across the continent.
