TGS manohar lall

The African climate action: Carbon financing

Carbon finance is a financial mechanism that aims to reduce greenhouse gas (GHG) emissions and promote the transition to a low-carbon economy. In Africa, carbon finance has the potential to support a range of initiatives, including renewable energy projects, energy efficiency improvements, and sustainable land use practices.

One of the main instruments for carbon finance in Africa is the Clean Development Mechanism (CDM), which is a market-based mechanism established under the United Nations Framework Convention on Climate Change (UNFCCC). The CDM allows developed countries to offset their GHG emissions by funding emission reduction projects in developing countries. These projects must be independently verified and registered with the UNFCCC in order to generate certified emission reductions (CERs), which can be sold on the carbon market.

In Africa, the CDM has supported a range of projects, including renewable energy projects such as wind and solar power plants, energy efficiency improvements in the industrial and residential sectors, and sustainable land use practices such as afforestation and reforestation.

Carbon finance has the potential to provide significant benefits to Africa, including the creation of new jobs and the development of new technologies and infrastructure. However, it is important for carbon finance projects to be implemented in a transparent and equitable manner in order to ensure that the benefits are shared fairly among all stakeholders.