28/06/2025
# # Lessons on Carbon Credit Business and Climate Adaptation & Mitigation in Africa
Africa stands at a pivotal moment in leveraging carbon markets and climate finance to address its unique vulnerabilities to climate change while unlocking significant economic opportunities. Here are key lessons from recent developments and initiatives:
1. Understanding Carbon Markets in Africa
- Carbon markets allow governments, companies, and individuals to buy and sell carbon credits, which represent reductions or removals of greenhouse gas emissions. There are two main types: compliance markets (regulated by law) and voluntary carbon markets (VCMs), the latter being especially relevant in Africa under Article 6 of the Paris Agreement[1][2].
- Africa currently generates only about 2% of its potential carbon credits annually, despite vast natural resources and significant mitigation potential[1].
*2. The Africa Carbon Markets Initiative (ACMI)*
- ACMI is a continent-wide effort to amplify Africa’s participation in global carbon markets, aiming to generate 300 million new carbon credits annually by 2030 and up to 1.5–2.5 gigatons by 2050[1][3].
- The initiative focuses on:
- Supporting stakeholders in credit generation, trading, and sales.
- Mobilizing billions in climate finance ($6bn by 2030; $120–$200bn by 2050).
- Creating millions of green jobs (30m by 2030; up to 190m by 2050)[1][3].
- Strategic partnerships, such as between Jospong Group and EKI Energy Services, highlight the importance of collaboration for scaling up carbon credit projects and securing climate finance[3].
3. Climate Adaptation and Mitigation Strategies
- *Mitigation*: Africa is harnessing its abundant renewable energy resources (solar, wind, hydro) to reduce emissions and promote sustainable development. Notable projects include:
- Lake Turkana Wind Power Project (Kenya) – supplies 15% of Kenya’s electricity[4].
- Noor Ouarzazate Solar Complex (Morocco) – world’s largest concentrated solar power plant[4].
- **Adaptation**: Given Africa's vulnerability to climate impacts, adaptation is critical. Strategies include:
- Climate-smart agriculture (CSA) to improve crop resilience and water efficiency, as seen in Ethiopia[4].
- Agroecology, integrating traditional knowledge with ecological principles, boosting resilience in Burkina Faso[4].
- Community-based adaptation (CBA) programs, such as the Africa Adaptation Initiative (AAI), focus on local capacity building and access to climate finance[4].
- Ecosystem-based adaptation (EbA), like South Africa’s Working for Water program, restores ecosystems to buffer against climate impacts[4].
*4. Policy, Governance, and Reporting**
- Effective participation in carbon markets requires robust policies, regulatory frameworks, and transparent measurement, reporting, and verification (MRV) systems[2].
- Training and capacity-building initiatives are crucial for African stakeholders to navigate carbon market standards, project design, and compliance with international protocols[2].
**5. Challenges and Opportunities**
- Africa’s main challenges include limited access to climate finance, underdeveloped carbon market infrastructure, and the need for fair pricing of carbon credits[1][3].
- However, the continent’s vast natural resources, growing expertise, and innovative partnerships position it to become a global leader in both climate adaptation and mitigation[1][3][4].
Africa’s journey in the carbon credit business and climate adaptation/mitigation is marked by ambitious targets, innovative projects, and a growing ecosystem of partnerships. By scaling up carbon market participation, investing in renewable energy and sustainable agriculture, and strengthening institutional frameworks, Africa can turn climate challenges into opportunities for sustainable development and resilience[1][3][4].
[1] https://african.business/2023/07/resources/how-can-africa-get-a-fair-price-for-its-carbon-credits
[2] https://ecasiafrica.org/training-on-carbon-markets-and-trading/
[3] https://www.ncmc.sua.ac.tz/unlocking-africas-climate-finance-billions-in-carbon-credit-potential/
[4] https://www.modernghana.com/news/1322861/climate-change-mitigation-and-adaptation-africas.html
[5] https://www.coursera.org/learn/climate-adaptation
[6] https://ccafs.cgiar.org/resources/publications/climate-change-adaptation-and-mitigation-initiatives-agriculture-east
[7] https://ecasiafrica.org/carbon-accounting-carbon-offsetting-course/
[8] https://www.africatraininginstitute.org/our-short-courses/climate-change-adaptation-and-sustainable-development-course/
[9] https://orbital.co.ke/a-step-by-step-guide-to-understanding-the-carbon-credits/
[10] https://www.iied.org/navigating-climate-adaptation-urban-africa-lessons-kigali
[11] https://verst.earth/africa-carbon-markets-101/
[12] https://www.ifad.org/en/w/explainers/6-lessons-learned-from-a-decade-of-climate-adaptation
[13] https://carboncredits.com/unleashing-africas-climate-finance-with-billions-of-carbon-credit-potential/
[14]https://www.undp.org/sites/g/files/zskgke326/files/migration/africa/CCA-Africa-Executive-Summary-EN.pdf
[15] https://www.worldbank.org/en/topic/climatechange/publication/projects-reducing-emissions-earning-carbon-credits-africa
[16]https://gca.org/wp-content/uploads/2021/10/GCA_State-and-Trends-in-Adaptation-2021-Africa_full-report_low-res.pdf
[17] https://africacarbonmarkets.org/africa-has-a-major-new-carbon-market-initiative-what-you-need-to-know/
[18] https://www.ifc.org/en/stories/2024/kenya-s-carbon-finance-moment
[19] https://saiia.org.za/research/africas-common-climate-response-and-action-plan/
[20] https://www.climateforesight.eu/articles/africa-adaptation-climate-change/
Africa is one of the most vulnerable continents to climate change and variability, a situation aggravated by a low adaptive capacity.
