Africa Rushes to sign Carbon Credit Deals Ahead of the Africa Carbon Markets Initiative
The Africa Climate Summit in Nairobi that preceded COP28, was viewed as Africa’s strong
base towards fair negotiations during the ongoing COP28 in UAE- Dubai especially in line with Climate Finance. An insight into the Carbon Market discussions and outcomes reveals that the African coalition on Carbon Markets is failing, as countries are taking on sole decisions.
As Tanzania went head to sign a carbon credit deal, now stands out to be one of East Africa’s biggest land-based carbon credit project that covers six national parks, spanning 1.8 million hectares (4.4 million acres), also making Tanzania now the leading African player in the global carbon credit trade – Rwanda launched its National Carbon Market Framework.
Rwanda’s framework sets rules for the trading of carbon credits, encouraging businesses and industries to adopt cleaner practices and invest in sustainable technologies. The framework, that was commissioned by the Rwanda Environment Management Authority (REMA), the carbon market regulator, with support from the United Nations Development Programme, aims to help to increase the transparency and trust among the carbon traders.
Other East African countries’ stand on Carbon credits market deals during this COP28 aren’t clear yet, although they are already having running deals in their countries; In October this year Kenya gave away millions of hectares to a UAE’s fir – Blue Carbon for carbon offsetting. The Blue Carbon firm has signed several carbon deals with other African countries for carbon offset projects covering a total area of 24.5 million hectares.
Uganda’s Carbon credit markets are privately run by different organizations like; Trees for Global Benefit – Uganda Trees where farmers are paid for tree-planting and pools carbon credits for sale on the voluntary market – This project has more than 2,500 farming households from 5 different districts and more than 3,000 hectares are under this project.
DuringCOP27, the Africa Carbon Markets Initiative was launched and singed by 7 countries ; Kenya, Gabon, Malawi, Mozambique, Togo, Nigeria, Burundi and Rwanda, with the aim of dramatically scaling voluntary carbon markets across Africa by; Scaling the market to 300 million carbon credits retired annually by 2030, and 1.5 billion credits annually by 2050, Unlocking $6 billion in revenue by 2030 and over $120 billion by 2050, Supporting 30 million jobs by 2030 and over 110 million jobs by 2050, $200 million advanced market commitments and later announced 13 action programs.
Following the trend now during this COP28, it’s not certain whether the Africa Carbon Markets Initiative will take charge of its lead in accelerating Africa’s participation in the global carbon market through; Launching country activation plans for multiple countries, Advancing market commitments with an ambition up to $ 1 billion for the purchase of high-integrity African credits, Developing projects based on new methodologies and the realities of Africa such as diesel replacement credits and biodiversity credits and Increasing a significant volume of credits on the continent, like it had earlier planned.
Associate Professor of Economics at Denison University and President of the Global Institute for Sustainable Prosperity Fadhel Kaboub, has many times come up to criticize the Carbon Credit Market as a solution to climate change, especially to Africa – Kaboub, who calls Carbon credits, pollution permits say these are clear green lights that allow Global North polluters to continue polluting while offering financial crumbs to the Global South.
“If this is not a new form of colonialism, then I don’t know what …………… They displace vulnerable communities from their ancestral territory and pastoral land. They enrich middlemen and speculators. And through the dominant market power of the corporations that buy these pollution permits, they pass the cost of the carbon credits on to their customers, many of whom are actually in the Global South, so we end up paying
for it indirectly”. Adds Kaboub
He describes Carbon Credit Markets as disturbing climate finance false solutions and dangerous distractions to Africa, a continent that hasn’t contributed much to climate change, but is instead suffering the effects.
In a recent report by Power Shift Africa and other Civil Society Organizations the Africa Carbon Market Initiative was branded; A Wolf In Sheep’s Clothing (2023)
