Article summary
- Africa’s trillion-dollar carbon market presents a significant opportunity for the continent to benefit from carbon markets, but collaboration among stakeholders is crucial.
- The launch of the African Carbon Markets Initiative (ACMI) aims to expand Africa’s participation in voluntary carbon markets and unlock various benefits.
- Carbon market vehicles serve to attract new investments for energy security in Africa while assisting countries in meeting their voluntary greenhouse gas reduction targets and national renewable energy goals.
Samaila Zubairu, President of the Africa Finance Corporation (AFC), emphasized the importance of African countries capitalizing on their carbon markets during the Africa CEO Forum held in Abidjan, Côte d’Ivoire on June 6.
Zubairu also proposed the establishment of a carbon markets foundation to provide African governments with the necessary knowledge and expertise to maximize the benefits of these markets for the African people.
Recall that the African Carbon Markets Initiative (ACMI) was launched in November 2022. The initiative aims to generate 300 million carbon credits annually by 2030 and 1.5 billion credits annually by 2050.
In addition to substantial economic gains, the ACMI envisions unlocking $6 billion in revenue by 2030 and over $120 billion by 2050, while also supporting the creation of 30 million jobs by 2030 and over 110 million jobs by 2050.
Past advocacy on carbon trading
Furthermore, during the 2022 US-Africa Leaders’ Summit, Zubairu advocated for the development of a carbon trading system in Africa. He called upon US impact investors, philanthropists, fund managers, research institutions, and technology organizations to collaborate with the AFC in establishing global standards for carbon trading.
This collaboration aims to provide cleaner energy alternatives for millions of Africans who rely on firewood for cooking and address the challenge of energy poverty in Africa. It is important to note that carbon market vehicles can be a mechanism to channel new investment into energy security in Africa. They can also help African countries to meet their voluntary greenhouse gas reduction targets as well as their national renewable energy targets.
What you should know
Carbon markets operate as trading systems where carbon credits are bought and sold. Companies and individuals can utilize these markets to offset their greenhouse gas emissions by purchasing carbon credits from entities that reduce or remove greenhouse gas emissions.