Africa is poised to play a significant role in the global fight against climate change, with its carbon markets offering a promising solution. As leaders gather for the Africa Climate Summit 2, the continent’s achievements and leadership in this area are gaining recognition. Africa is home to 12 of the 20 fastest-growing economies, 17% of the world’s forests, and 60% of uncultivated arable land, making it an ideal location for carbon reduction initiatives.
In recent years, African countries have demonstrated remarkable climate innovation. Nigeria issued the continent’s first sovereign carbon credit, while Kenya introduced a progressive framework for carbon rights and revenue sharing. Gabon has safeguarded over 88% of its forest cover, and Ghana and Mozambique have piloted jurisdictional REDD+ projects. The Africa Carbon Markets Initiative aims to issue 300 million high-integrity credits annually by 2030, unlocking an estimated $6 billion in revenue and creating 30 million jobs.
Funders are taking notice of Africa’s momentum, with initiatives such as Verst Carbon’s national carbon registry in Kenya and reforestation projects in West Africa. Clean cooking programs in Southern Africa have also reduced emissions and improved health outcomes. African carbon credits offer a cost-effective solution, typically costing $10-20 per ton, compared to $100+ per ton in advanced economies. These credits also provide additional benefits, such as mangrove conservation, agroforestry, and microgrid development.
The main challenge now is scaling demand for African carbon credits. Leaders at the Africa Climate Summit 2 must push for structural pathways, including an Africa Window in CORSIA and IMO, EU Article 6 Offtakes, and voluntary market revitalization. This will require strong, reliable buyers to support Africa’s climate innovation. By investing in African carbon markets, global buyers can access high-integrity credits while supporting sustainable development and climate resilience in the continent.
The Africa Climate and Energy Nexus is working to build continental collaboration, bringing together governments, innovators, and funders to strengthen carbon markets across Africa. As the world seeks to achieve its climate goals, it is essential to recognize the value of Africa’s carbon markets and invest in the continent’s climate-positive growth. By doing so, we can unlock significant emissions reductions, support sustainable development, and promote a just transition to a low-carbon economy.
