Africa Needs to Collaborate to Harness Opportunities in Carbon Trading: Environmental Issues Chair

Addis Ababa, July 24/2024(ENA)- African countries need to collaborate and take decisive action to harness the potential opportunities in carbon trading, Environmental Issues Permanent Representatives Subcommittee Chair Harold Bundu Saffa said.

The chair made the remark at the Africa Multi-Stakeholder Conference on Carbon Markets,  underway at the African Union Headquarters here in Addis Ababa.

 

The overall goal of the conference is to provide 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.

Speaking on the occasion, Saffa said Africa finds itself at a critical juncture where economic development must align with the imperative to address a rapidly changing climate.

The African continent is not the primary driver of the global climate crisis, yet it disproportionately bears the burden of its consequences, he added.

Africa faces prolonged droughts, erratic rainfall patterns, soaring temperatures, and intensified extreme weather events, all posing existential threats to food security, water resources, and the livelihood of countless communities.

Compounding these pressing challenges is the stark reality of insufficient climate finance, which limits the continent's ability to effectively address the multifaceted climate crisis, the chair elaborated.

The African region has the potential to leverage its rich natural resources to unlock economic value, accelerate sustainable industrialization, and promote economic transformation and diversification.

Therefore, this conference provides a crucial platform for Africa to collaborate and catalyze action in harnessing the potential opportunities in carbon trading. 

He hoped that the conference will ensure that Africa receive fair pricing for its carbon in global credit markets and develops markets based on African principles and priorities rather than foreign ontologies or epistemologies.

Africa possesses vast ecosystems crucial for carbon storage, Saffa said, adding that the Congo forests, dubbed the world's second long to absorb about 1.2 billion tons of CO2 annually. 

The Congo basin was roughly 8 percent of the world's forest base carbon. However, the chair underlined that this significant contribution is not reflected proportionally in the carbon trade.

 

AU/AfCFTA Relations and Trade Policy Director, Yusuf Daya said carbon market is crucial for exploring and implementing solutions that not only mitigate environmental issues but also foster economic growth and social development.

The potential economic benefits of carbon credit markets are essential; many African countries possess vast forests, savannas, and other ecosystems that act as significant carbon sinks. 

By participating in carbon credit markets, these nations can monetize their natural assets, attract investments, and generate revenues to support development, the director noted.

This revenue can be reinvested in local communities, infrastructure, sustainable development projects, driving economic growth and reducing poverty. 

According to him, there are, however, challenges that need to be addressed, including establishing robust regulatory frameworks, ensuring transparency and accountability and building capacity for monitoring and verification.

The three days conference has brought together government representatives from AU member states, representatives of regional economic communities, private sector entities and CSOs, among others.