Africa aims to boost carbon credit production 19-fold by 2030
Kenyan President William Ruto launched Africa’s leading climate summit, revealing an ambitious initiative to increase Africa’s carbon credit production 19-fold by 2030. This garnered pledges of hundreds of millions, signifying progress towards sustainability.
Notably, UAE investors pledged $450 million to the Africa Carbon Markets Initiative (ACMI), emphasizing global recognition of environmentally responsible growth. Ruto stressed green growth’s economic potential, transcending Africa.
African leaders advocate market-based financing like carbon credits from emissions-reducing projects, core to this initiative, enabling companies to offset emissions. The summit in Nairobi aims to attract climate investment, catalyzing funding from affluent donors.
The offset market was valued at $2 billion in 2021, with projections of $10–40 billion by 2030. Concerns persist about slow climate financing for Africa, but initiatives, like expanding IMF drawing rights, aim to unlock $500 billion, with COP28 discussing this in November.
Private sector opportunities in thermal, solar, wind, and hydropower were highlighted by Patricia Scotland, Commonwealth Secretary-General. Over 20 leaders will unite at the summit to articulate Africa’s position for upcoming climate conferences.
This not only showcases global recognition of the importance of environmentally responsible growth but also highlights the economic potential of green initiatives across Africa. By advocating market-based financing and expanding carbon credits, this summit paves the way for increased climate investment and sets the stage for substantial progress in mitigating climate change, benefiting not only Africa but the entire planet.
Source: Miriri, Duncan. Reuters. “Hundreds of millions of dollars pledged for African carbon credits at climate summit”. https://www.reuters.com/business/environment/africa-climate-summit-opens-with-focus-financing-continental-unity-2023-09-04/" 04/09/2023. [Date accessed: 08/09/2023].
