Towards empowering African countries and private sectors in securing additional resources to combat climate challenges, the African Development Bank (AfDB) has become a member of the African Carbon Markets Initiative (ACMI).
Launched at the United Nations climate change summit (COP27) in Egypt, ACMI spearheaded by the Global Energy Alliance for People and Planet (GEAPP), Sustainable Energy for All (SEforALL) and United Nations Economic Commission for Africa (UNECA) with support from the UN Climate Change High-Level Champions aims to expand Africa’s voluntary and compliance carbon markets, enhance the continent’s contribution to global carbon reduction under the Paris Agreement.
The announcement was made by AfDB’s Vice President for Power, Energy, Climate, and Green Growth, Dr Kevin Kariuki, during the 2024 yearly meeting of the bank held in Nairobi, Kenya recently. “Through this decision, the bank is committed to establishing a mechanism to support carbon market initiatives across our continent,” said Kariuki.
He emphasised the potential of carbon markets as a source of climate finance, stressing the need for financial innovation. He urged African countries to capitalise on opportunities for carbon credit trading under the Paris Agreement’s compliance markets, where emission reduction prices are considerably higher compared to voluntary markets.
The event moderated by AfDB’s Director of Climate Change and Green Growth, Anthony Nyong, convened ministers of finance and heads of international organisations. The participants shared ideas and experiences, offering recommendations on addressing challenges and leveraging opportunities in carbon markets for African countries.
Deputy Executive Secretary of the United Nations Economic Commission for Africa, Dr Hanan Morsy, stressed the importance of harmonised global laws to ensure fair compensation and narrow the price gap between voluntary and compliant markets.
Deputy Director for Africa at the World Resources Institute, Dr Rebekah Shirley, noted Africa’s important contribution to carbon removal and the possibility of carbon markets on the continent. She highlighted the need for active involvement and representation from Africa.
Chief Operating Officer, Conservation International, Dr Julius Court, stated the importance of robust regulations and revenue-sharing protocols that benefit all stakeholders, while USAID’s Senior Advisor for Carbon Markets and Climate Finance, Aurelia Micko, emphasised the significance of integrity and openness in carbon markets.
Vice President for Africa, Rockefeller Foundation, William Asiko, said the conversation underlines the necessity of building trust in the legitimacy of African carbon credits. The round table facilitated an exchange of ideas and experiences among participants, providing valuable recommendations for addressing challenges and leveraging opportunities in carbon markets across African countries.
