Written by Mariam Idris
The Climate and Sustainable Development Network (CSDevNet) was fully represented at the Africa Carbon Market Conference orgainsed by the African Union at Addis Ababa.
CSDevNet has been in the forefront of leading conversations on climate justice in relation to the carbon markets strengthening the capacity of CSOs to better understand the role of Africa in the evolving carbon markets.
The overall goal of the conference provided a platform for the African continent to deliberate on carbon markets, the approaches and opportunities they present, the threats they pose and possible options the continent can explore, taking into consideration its circumstances. The use of natural resources for economic growth presents opportunities for Africa as the continent strives to green its economy.
As a continent most affected by the adverse of climate change, it is encouraging to see that there are opportunities in Africa’s rich natural capital for sustainable energy by including market value on activities that can reduce Greenhouse Gas (GHG) emissions. The carbon market is increasingly being used not only as a tool for reducing greenhouse gas emissions but also as a tool to mobilize additional finance for this transformation.
In 2015, the global community concluded the Paris Agreement (PA) to combat climate change by limiting global temperature rise to well below 2°C. The Agreement engages all countries through their Nationally Determined Contributions (NDCs) and to achieve their NDCs, some African countries proposed to use the carbon markets as quick measures to capture or significantly reduce the GHG emissions.
While the Clean Development Mechanism (CDM) under the Kyoto Protocol raised controversy on its purpose, The Paris Agreement established a new generation of voluntary carbon markets through its article 6 as a transition measure to the CDM. With Article 6 rules yet to be concluded under the climate change negotiations, it is imperative for Africa to actively participate in shaping them so that they reflect regional circumstances and enable the continent to access new schemes of climate finance.
For African countries, trading of carbon credits represents an opportunity for economic development, job creations, access to climate finance and a driver for change that can contribute to the global fight against climate change, the realization of the Aspirations of Agenda 2063, and the sustainable development goals. For example, the Carbon market can be a mechanism to channel new investment into Energy Access and security on the continent, contribute to infrastructure development and can also help African countries.
It is against this background that the Africa Union Commission in collaboration with partners, organize a technical market preparatory meeting in Lusaka, Zambia from 19-21 June 2024 as a lead up to the main Africa Multi-Stakeholder Conference on Carbon Markets, to take place in Addis Ababa, 24-26 July 2024.
During the event, Mr. Harsen Nyambe, Director SEBE (AUC) in his remarks urged member states to engage in the carbon markets.
“it is crucial to explore the opportunities for Africa which will drive economic growth and critical economic system,” he said.
Similarly, financing biodiversity restoration and conservation represents a huge opportunity for Africa. This involves rewarding projects that improve land management practices and lead to increased carbon storage and sinks.
The merged carbon and biodiversity credits approaches provide opportunities for Africa to access innovative climate finance schemes and allow project development on biodiversity alongside carbon reduction, hence contributing to efforts aimed at tackling the Triple Planetary Crisis of Biodiversity Loss, Climate Change and Pollution.
The representative of the United Nations Development Programme (UNDP) stated that Africa needs strong institutional framework which includes monitoring, planning and integrating socio-economic values in carbon markets. Carbon Markets present potential value and it’s important for Africa to trade in the carbon markets because the forest contributes 8% of the world’s carbon market.
Dr. Mithka Mwenda the Executive Director of Pan African Climate Justice Alliance (PACJA) in his statement emphasized the critical role Africa’s natural capital playing in driving sustainable development and poverty reduction.
“Our rich natural resources present immense opportunities, but we must ensure that the mechanisms we put in place, such as carbon markets, align with the principles of climate justice,” he added.
Some key points from his presentation were:
- Strategic Approach: the need to carefully define Africa’s strategic approach to carbon markets, ensuring that these investments prioritize our continent’s development needs and avoid compromising our future aspirations.
- Balancing Act: Carbon markets have the potential to accelerate global decarbonization, but we must avoid creating a loophole for carbon-intensive economies to continue their harmful practices. It’s essential to balance the benefits with the imperative to reduce greenhouse gas emissions.
- Community Impact: Carbon investments should not lead to the displacement or disenfranchisement of our communities. We must safeguard their land rights and ensure that they benefit from carbon market opportunities rather than being excluded or exploited.
- Fair Share: The current financial returns from carbon markets to African communities are insufficient. We must advocate for a fairer distribution of benefits, ensuring that those on the frontlines of conservation receive adequate support.
- Human Rights: At the heart of our approach must be a commitment to human rights. We need to steer clear of practices that commodify Africa’s natural assets and instead focus on mechanisms that promote real climate justice and sustainable development.
The National Network Coordinator of CSDevNet, Mr. Abu Stephen actively participated in the workshop. His involvement aimed to strengthen his capacity as the National Coordinator of CSOs in Nigeria on climate justice cutting across policy influencing, carbon credits, trainings on Nature-based solutions that drive sustainable development in frontline communities.
The event featured insightful sessions that enabled member states and participants contribute effectively to carbon markets discourse
Mr. Hadji Mbaye Diagne AGN Negotiator (Senegal), highlighted the understanding of non-compliance or Voluntary carbon markets and its implication to Africa. During the session he underscored the opportunities and functionalities of voluntary carbon markets including the role of biodiversity credits and their impacts on local communities and emission reductions.
He noted that “understanding climate finance and carbon market under the article 6 of the Paris agreement on the carbon market and implications it’s for Africa is very necessary for the global markets for effective negotiations”.
The conference provided an inclusive and practical learning sessions for members states. The thematic break-out groups delved in to the co-benefits of carbon projects for Africa which focuses on mechanism to integrate co-benefit such as: environmental, social, economic, cultural livelihood for communities and countries.
This event not only strengthened the capacity of member states but also emphasized on the importance of institutional framework, addressing policy/regulatory frameworks needed to effectively participate in carbon markets, infrastructure development and stakeholder collaboration.
Also, the workshop fostered exchange of ideas and market practices from countries who have engage or trade in the carbon markets.
The workshop explored opportunities of climate transparency, Africa’s capacity for carbon market, technology-based solutions such as; installation of clean cooking energy public schools, carbon capture storage, solar power plants, electric mobility, waste to composite, methane generation, agroforestry and palm plantation as practiced in some member countries like ghana, Kenya, Nigeria, Zambia, Tanzania, Senegal and the likes.
In conclusion, the emerging carbon market represents a transformative opportunity for Africa, enabling the continent to leverage its natural resources for sustainable economic growth while contributing to global climate goals.
By actively participating in shaping carbon market mechanisms and implementing innovative projects, Africa can harness its natural capital to drive economic development, create jobs, and advance environmental sustainability.
The forthcoming side event of Africa Multi-Stakeholder Conference on Carbon Markets will be a pivotal moment for the continent to solidify its role in this evolving global landscape and chart a path towards a greener and more prosperous future.