Africa Carbon Markets Initiative helps provide climate finance

CAIRO - 8 November 2022: Africa Carbon Markets Initiative is a result of regional collaboration between African countries and it helps provide finance for climate action in different countries of the continent, according to UN Climate Change High Level Champion for Egypt and UN Special Envoy on Financing 2030 Sustainable Development Agenda, Mahmoud Mohieldin.

 

His remarks came during his participation in the session of launching "Africa Carbon Markets Initiative" in COP27 that takes place in Sharm El Sheikh, with the participation of Kenya President William Ruto, Malawi President Lazarus McCarthy Chakwera, and Gabon Environment Minister Lee White, and a number of African ministers, representatives of international and regional organizations and HLCs.

 

Mohieldin explained that the initiative is going with all five priorities of COP27 as the African countries keen to implement the initiative through establishing carbon markets that help implement all aspects of climate action including adaptation and mitigation measures, and this reflects the adoption of the climate action holistic approach.

 

He added that the initiative represents regional collaboration and integration, helps in localizing climate action as the results will be felt by farmers and local habitants in Africa, beside the effective impacts of establishing carbon markets on the Africa economies growth in a way that helps provide finance for climate action.

 

Mohieldin referred to the notable growth of carbon markets in the world as it grew by 31% since 2016 while the demand on carbon credits grew by almost 50%, saying that demand on African carbon credits is increasing.

 

He stressed the importance of carbon markets for Africa as it enhances the capability of the continent to finance climate action, and reflects the appreciation of Africa for the value of these kinds of markets.

 

Mohieldin highlighted the necessity of fair distribution and transparency regarding the revenues of carbon markets, and the importance of considering the African economic dynamics to make the most benefit of these markets that represent great opportunity of growth and investments attraction.

 

The African leaders and ministers confirmed during their participation the necessity of establishing and developing carbon markets that suit Africa economies considering the continent's need for sources to finance climate action and green transition.

 

The participants also urged all stakeholders including the private sector to participate in establishing and developing Africa carbon markets in a frame of providing sustainable mechanisms to finance climate action in the continent.