How to ensure carbon credits benefit Africa

For decades, developed countries have been talking about how carbon markets are going to develop Africa. Even though majority of the countries are willing to adopt to these markets, they face a myriad of challenges, including lack of carbon market regulations to guide them.

Carbon market refers to a trade in which carbon credits, also known as carbon certificates, are obtained and sold within defined standards for the reduction of greenhouse gas emissions.

In the just concluded Africa Climate Summit, President Ruto said that though carbon markets have the potential to raise billions of dollars to Africa, very few countries are benefiting because they lack mechanisms to regulate the sector.

Lack of regulations has left many communities not benefiting from this trade. Currently, 80 per cent of the value of carbon credits are captured by intermediaries, leaving only a fraction for the communities undertaking the actual work.

In Kenya, a tonne of carbon credit is sold at 10 US dollars while the World Bank prices the product between USD 40 to 80 per metric tonne.

Evidently, these are enough grounds for African countries to come up with policies that will regulate the market if they are to fully maximize the full potential of carbon markets. By regulating the markets, Africa will play an active role in reducing greenhouse gas emissions and mitigate the impacts of climate change.

Having regulations will also help different countries access climate financing and attract investments for development projects. Regulatory frameworks will ensure funds are channeled towards initiatives that reduce emissions, enhance resilience and promote sustainable development.

Further, controlling the carbon markets is essential as it will help to maintain the market integrity and prevent fraud, double-counting and other malpractices. Robust regulatory frameworks will ensure transparency, accountability and credibility in the carbon offsets system, thereby safeguarding the interests of Africa and its stakeholders.

Having these policies, African countries will have the opportunity of collaborating with the international community in addressing climate change. This will foster partnerships, knowledge sharing and technology transfer, leading to improved climate solutions.

The winner of these policies will be the communities surrounding forests that are storing carbon credits. It will help them cash-in more from their efforts towards the blue-carbon.

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