With COP29 on the horizon, Africa must seize its unique opportunity to become a leader in the global carbon market. By taking full advantage of Article 6 mechanisms, African countries can drive sustainable growth and ensure their resources work for the continent’s prosperity.
“At COP29 in Baku, this opportunity takes centre stage, and Africa’s leaders must come ready to advocate for frameworks that ensure Africa’s resources serve African interests.”
The stakes at Baku: Africa’s time to lead in the global carbon market
Africa stands at a pivotal moment. With rich natural resources and untapped renewable potential, the continent is primed to take a leading role in climate action, particularly through Article 6 of the Paris Agreement.
At COP29 in Baku, this opportunity takes centre stage, and Africa’s leaders must come ready to advocate for frameworks that ensure Africa’s resources serve African interests.
As Article 6 aims to facilitate international cooperation on carbon reduction, it’s also Africa’s chance to dictate the terms of this cooperation. Countries like Kenya and Gabon have already shown interest in carbon credits, yet many African nations still lack the infrastructure or policies to fully participate.
For too long, foreign powers have dictated the terms, extracting resources without leaving meaningful benefits behind. Africa must now set its own rules, ensuring that carbon markets support African goals—job creation, sustainable development, and a just energy transition.
Building infrastructure and capacity: A path to self-sufficiency
One critical barrier to Africa’s full participation in Article 6 is the lack of infrastructure and capacity for managing carbon credits. Implementing a rigorous greenhouse gas (GHG) inventory, establishing national registry systems, and building robust frameworks are vital steps.
These systems will allow African nations to verify, monitor, and enforce standards that ensure environmental integrity and prevent double counting.
Despite the gaps, African countries do not lack ambition. Rwanda has launched Africa’s first green bond, paving the way for investment in sustainable projects. Still, without substantial infrastructure improvements, Africa will continue to be sidelined, unable to compete on equal footing in the global carbon market.
Rather than relying on foreign-funded solutions, African nations need funding mechanisms that prioritise local expertise and workforce development. This is a moment for African leaders to demand support that strengthens self-sufficiency, not dependence.
Read also: Nigeria calls for more adaptation financing as COP29 climate talks begin
Transparency and fairness: Ensuring Africa’s gains in carbon markets
Participation in global carbon markets under Article 6 presents immense potential but also notable risks. Transparency is a significant concern, with the risk that powerful countries will exploit African resources through opaque agreements.
If Africa is to thrive in the carbon market, African countries must insist on transparent, fair regulations that protect national interests. This includes setting clear authorisation procedures and ensuring that revenue from carbon credits directly benefits African communities.
During the recent Bonn climate talks, negotiators made progress toward consensus on Article 6, bringing hope for fairer, more transparent systems that could benefit Africa. However, real action is required at Baku to solidify these gains. African leaders must be uncompromising in their demand for equitable terms that prioritise Africa’s development goals rather than foreign profit margins. By focusing on strong governance and transparency, Africa can make Article 6 work for its people, securing not only climate finance but a path to resilient economic growth.
From exploitation to ownership: Africa’s untapped potential in carbon markets
Africa holds 60 percent of the world’s uncultivated arable land and vast renewable energy resources, yet the continent has been at the mercy of global markets that rarely align with African interests. The traditional model—where foreign countries control resources, extraction, and profit—has failed to bring meaningful benefits to African communities. Now, with Article 6 mechanisms, Africa has a chance to rewrite this narrative.
Carbon credits offer a tool for Africa to monetise its resources on its terms. From forest conservation projects in Gabon to renewable energy initiatives in South Africa, Africa’s assets could drive the world’s decarbonisation efforts, all while building Africa’s economic future. But for this to happen, African nations must be proactive, setting clear rules that require international partnerships to respect African ownership and objectives. COP29 can be Africa’s turning point, where our leaders refuse to be passive participants in global markets and instead set the agenda that benefits Africa.
Read also:Five major talking points at COP29 climate summit
Conclusion: No more business as usual
COP29 in Baku represents Africa’s moment to demand respect and recognition in the global carbon market. African nations can no longer afford to be sidelined or exploited. The resources on African soil should fuel African prosperity, providing jobs, infrastructure, and a foundation for sustainable growth. By taking ownership of Article 6 mechanisms, Africa can secure climate finance that addresses African needs and priorities.
To achieve this, African leaders must arrive in Baku with a unified stance, ready to negotiate for the frameworks and funding that will support African autonomy in carbon markets. The time for dependence and exploitation is over. This is the time for Africa to lead the way, to take control of its resources, and to shape a future where Africa’s climate action fuels Africa’s development.
Dauda Sulaimon Abiola is an energy economist and ESG professional with an interest in how corporate ESG initiatives shape environmental policy and development. He currently leads the team at Skalable, an environmental consultancy firm, and volunteers for Skill Afrik.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
