As the African continent battles with the adverse effects of climate change, Nigeria’s Vice President, Prof Yemi Osinbajo has tasked the continent’s leaders to look towards private-sector-led, voluntary carbon markets (VCMs) as they hold major to accelerate economic development and simultaneously curb greenhouse gas emissions.
He spoke ahead of the November 2022 27th Conference of the Parties of the United Nations Framework Convention on Climate Change (UNFCCC) COP27 hosted by the Government of the Arab Republic of Egypt.
He noted that African countries face a major challenge in financing in terms of transforming their economies, even as dependence on financing from the Global North remains more of a promise than a reality. He, therefore, charged the continent’s leaders to take thoughtful and deliberate action toward addressing the challenges of global warming.
He said, “One of the key challenges for Africa in confronting the climate challenge is how to finance the necessary transformation of regional economies. Flows of climate finance from the Global North on the scale required remain more of a promise than a reality.
“Part of the solution, as obtained in other climes, is to unlock the vast potential of carbon markets. The realisation is dawning across Africa that private-sector-led, voluntary carbon markets (VCMs) represent a major opportunity to accelerate economic development and simultaneously curb greenhouse gas emissions. But seizing this opportunity will take thoughtful and deliberate action, including by African governments.
“That’s why we are excited to be taking part in a new initiative to be launched at the COP 27 climate summit at Sharm El Sheikh, Egypt. The African Carbon Markets Initiative (ACMI) seeks to support a dramatic increase in the production of African carbon credits while ensuring that carbon credit revenues are transparent and equitable and create good jobs. Crucially, these must be high integrity credits that are used to supplement direct decarbonization and which deliver real climate action.”
Vice President Osinbajo noted that Africa has not maximised its potential in terms of VCMs in the face of the global demand for VCMs, and urged the governments of Africa to do more.
He further said, “Global demand in VCMs has nearly quadrupled in the last five years, driven principally by companies buying credits to help meet their climate pledges. Demand for African credits is also increasing, but from a low base, and the continent currently produces only a small proportion of its potential.”