Carbon credits have gained considerable global momentum in recent years, with trading volumes rising 164% in 2021 alone as both China and the UK launched trading schemes. So far, Africa – which is on the frontline of the consequences of climate change, but bears minimal responsibility for carbon emissions – has largely missed the potential benefits offered by carbon credits. However, there is optimism that the impetus provided by COP27 can help change this.
A recently-signed agreement between Morocco and Singapore to exchange carbon credits and technical assistance points to this being true. Such inter-government capacity building is “sorely needed” if governments are to make the most of country-to-country trading in carbon credits, writes African Energy senior research analyst, Ajay Ubhi.
Read African Energy analysis of the Morocco-Singapore agreement.
- How can investors buy carbon credits that are credible and how can project developers issue credits in a cost and resource effective way?
- How can markets be made liquid and credits more fungible?
- What impact could a new trading mechanism under the Paris Agreement have on voluntary credit markets?
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We will return to discuss the carbon credit market in the “African Energy in transition” session at November’s Africa Investment Exchange: Power and Renewables 2022 meeting.