Diana Kibuuka

Greenpeace Africa strongly opposes the push for unreliable market-based mechanisms as a solution to the climate crisis, warning that they undermine real climate action to address the growing crisis facing African communities.

Fred Njehu, Pan-African Political Strategist for Greenpeace Africa, says Carbon markets are perpetuating a dangerous form of carbon colonialism in Africa.

“We’ve witnessed widespread resource exploitation and land grabs across the continent, where local communities and indigenous people are displaced by offset projects that primarily benefit corporations from the Global North –  This system allows wealthy nations to continue polluting while outsourcing their climate responsibilities to Africa, effectively turning our lands into carbon dumps while failing to address the root causes of the climate crisis.” Njehu explains

He proposes that, instead of these flawed market mechanisms, polluters should instead pay for the damages they have caused, through the Climate Damages Tax. And another proposal is that the New Quantified Goal on Climate Finance includes issues of adaptation, loss and damage that are a priority to the African continent.

Investing in renewable energy, enhancing climate adaptation and resilience, and supporting community-led conservation efforts are more effective and equitable solutions. These approaches not only reduce Green House Gas emissions at the source but also empower local communities to lead in the fight against climate change.

Murtala Touray, Program Director at Greenpeace Africa says that Africa is in crisis that requires global efforts. Countries looking inward to protect national interests will only aggravate the crisis, leading to increasingly global devastating consequences.

According to Excellent Hachileka the Programme Specialist, Climate Strategies and Policy Team, UNDP RSCA, although carbon markets are emerging as a powerful tool to combat climate change, he describes them as “a promising tool, but with challenges”

“In simple terms, carbon markets are like trading floors for the fight against climate change. Carbon credits work like a certificate for reducing greenhouse gases. This encourages green activities, from planting trees to shifting from coal-powered plants. These markets are especially important for Africa, as it enables countries to access new technologies and substantial funding. In turn, these can significantly help states in implementing ambitious climate action plans and meeting their Nationally Determined Contributions (NDCs)”, he notes.

The main focus for carbon markets should be on emission reduction, while finance mobilization should be seen as a co-benefit of investments in green projects that promote sustainable development and environmental integrity. As noted by Achim Steiner, UNDP Administrator; “Carbon markets can help unlock the trillion-dollar gap that is needed for developing countries to carry out their climate action pledges. But they cannot and should not be used to the detriment of climate impact, indigenous communities and human rights. It is important to emphasize integrity of carbon credit supply, equity for host countries, farmers, households and rights-holders, including Indigenous Peoples, local communities and women”. 

Participation in carbon markets should be firmly anchored in states’ NDC commitments. Carbon market strategies should align with national climate goals and the development of robust National Carbon Markets Frameworks. Currently, many African countries lack these frameworks, which are essential to ensuring that carbon trading activities contribute positively to environmental sustainability and sustainable development.

The role of national carbon markets frameworks

Many countries are interested in trading carbon credits, but doing this fairly demands clear rules, which should be stipulated in states’ National Carbon Markets Frameworks. Concerns about carbon market integrity and increased interests have underscored the lack of guiding policy and mechanisms. These gaps prevent many African countries from participating effectively in carbon markets of high integrity. 

There is, therefore, a compelling need for countries to have robust national carbon market frameworks in place. These frameworks provide a structured approach to carbon trading, ensuring that it contributes meaningfully to emission reductions, NDC commitments and sustainable development objectives. African countries should prioritize developing these frameworks. Specifically, they would enable countries to implement procedures for granting authorizations; registering and tracking Internationally Transferred Mitigation Outcomes; and reporting on their participation in cooperative approaches. 

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