Unlocking the Potential of Climate Finance & Carbon Pricing in Africa

GGGI has been involved in many successful implementations of carbon market mechanisms, in particular, the Clean Development Mechanism (CDM) and more recently Article 6 of the Paris Agreement through the DAPA and MATS programs in several countries in Africa. As climate change negotiations intensify in the run-up to COP26, carbon markets are likely to grow and increase investment incentives across the continent. So why is Africa making so little use of carbon finance mechanisms and few proposed carbon pricing initiatives for investments across sectors? Where are the incentives for change and how can they be implemented? Can green bonds help accelerate the transition to a low-carbon economy and mitigate the risk of a climate crisis? How could the introduction of CO2 taxes in all countries contribute to simultaneously reducing carbon emissions and global poverty, especially in Africa?

This session addressed these questions and included discussions from key speakers and high-level representatives from governments, development partners, private sector and research institutes starting with an analysis of available carbon finance instruments/mechanisms and carbon pricing potential in Africa. Finally, the panel session offered concrete recommendations on how African governments and the international community can overcome barriers to carbon finance and take advantage of current carbon finance opportunities.