The Africa Action Plan on Carbon Markets (AAPCM) is a strategic framework that reflects Africa's commitment to addressing the diverse climate challenges facing the continent, including the impacts of climate change on agriculture, water resources, and public health. By establishing a robust and inclusive framework for carbon markets, the AAPCM aims to promote sustainable development, mobilize investment, and generate green employment opportunities, while ensuring that the perspectives and priorities of local communities and marginalized groups are fully integrated into carbon market initiatives. Through this Action Plan, African countries are empowered to harness the potential of carbon markets to reduce greenhouse gas emissions, strengthen climate resilience, and accelerate their transition to sustainable, low-carbon development. Carbon credits in Africa can be generated from nature-based solutions (NbS) like forest and woodland restoration; wetland and mangrove rehabilitation; protected areas management; and technology-based solutions like energy efficiency, renewable energy systems; refrigeration and air conditioning systems; irrigation technologies; fertiliser manufacturing technologies; e-vehicles; waste management technologies. The overall objective of the Action Plan is to provide common understanding, approaches and recommendations on common actions for Member States in engaging in carbon markets. The specific objectives of the Action Plan are (i) optimize returns on investments including co-benefits in carbon markets for African countries; (ii) promote credibility, integrity, human rights and transparency in carbon market; (iii) support capacity development for effective engagement in carbon markets; (iv) enhance regional approaches for participating in carbon markets; (v) strengthen carbon market governance through establishing and aligning policy, regulatory and institutional arrangements. The document encourages the development of national carbon market frameworks to establish the legal and institutional structures needed to align carbon markets with national climate goals. They support the creation of high-quality carbon credits through clear rules on governance, project approvals, carbon rights, ownership, tracking, and reporting. Key functions include approving carbon market activities, regulating carbon credit ownership and transfers while protecting community rights, tracking mitigation outcomes through registries, and managing authorizations and corresponding adjustments under Article 6 of the Paris Agreement to prevent double counting. Governments may also develop carbon pricing mechanisms and domestic compliance markets to support emission reductions and broader climate objectives. Additionally, the AAPCM provides guidelines for African Union Member States to establish and strengthen National Carbon Market Frameworks through 3 key pillars: policy and regulatory frameworks, institutional arrangements, and capacity development. It recommends developing national policies aligned with NDCs and long-term climate goals, establishing clear regulations for carbon trading, project approval, credit tracking, pricing, and MRV systems, while ensuring environmental and social safeguards, including community participation, benefit sharing, and grievance mechanisms. The AAPCM also highlights the importance of strong institutional structures, including Designated National Authorities (DNAs), to oversee carbon market activities and facilitate stakeholder coordination. Finally, it promotes capacity building through training, knowledge exchange, expert networks, and regional cooperation to strengthen African countries’ ability to participate effectively in carbon markets.
2025-02-01