Mahmoud Mohieldin, UN Climate Change High-Level Champion for Egypt and UN Special Envoy on Financing the 2030 Sustainable Development Agenda said Tuesday that the African Carbon Markets Initiative (ACMI) is one of the most important mechanisms for financing climate action in Africa.
Mohieldin made the remarks during a panel discussion on “Carbon Markets for Global South, featuring ACMI” at the Africa Climate Summit (ACS) in Nairobi.
He said the African Carbon Markets Initiative was launched during COP27 in Sharm El Sheikh after intensive talks and discussions between all actors and potential sponsors on the best innovative mechanisms for financing climate and development action in Africa.
“Since day one, the initiative has received official support from African leaders and governments as well as some regional and international financing institutions, besides the effective participation of private sector, civil society and philanthropies,” Mohieldin said.
He pointed out the need for the African Carbon Markets Initiative to deal with the challenges facing the establishment of carbon markets in general, such as its main objective, technology, the type of the market (compliance or voluntary), and how far the market contributes to achieving energy transition and, thus, reducing emissions.
Mohieldin also called on all actors to intensify work to create a sustainable carbon market in Africa in the long term that suits the continent’s priorities, economies and objectives of environmental and climate action, taking into account the socioeconomic dimension of the continent countries.
He stressed the need to set standards and criteria for the African carbon markets that achieve the continent’s goals and go in line with global market standards.
In a related context, Mohieldin stressed the importance of fighting poverty in Africa by achieving sustainable development and providing financing and technology for development climate projects and infrastructure improvement. He said all of this requires the availability of information and data as well as the legislative framework for making decisions.
Mohieldin also stressed the importance of determining the required finance for implementing climate projects, confirming the need to make optimal use of local financing sources in developing countries in general and African countries in particular, and not to rely on external sources alone. He also called for stimulating the participation of the private sector in financing and implementing climate and development action in the continent.
The climate champion highlighted the importance of scientific research and studies and the role of universities and research centres in this regard in order to find scientific solutions to the climate crisis. He noted that climate initiatives and projects in Africa, including ACMI, need support from researchers as well as cooperation in sharing information at the regional and international levels.
African Carbon Markets Initiative
The African Carbon Markets Initiative is a public-private partnership launched in November 2022 to accelerate the development of carbon markets in Africa. The initiative is led by the UN Climate Change High-Level Champions for Egypt and South Africa and is supported by a coalition of governments, businesses, and civil society organizations.
The ACMI aims to help Africa raise billions of dollars in climate finance by creating a market for carbon credits generated from projects that reduce or remove greenhouse gas emissions.
The African Carbon Markets Initiative will also support the development of standards and regulations for carbon markets in Africa and will work to promote the participation of local communities and businesses in the carbon market.
The African Carbon Markets Initiative is a key part of Africa’s efforts to achieve its climate goals. The continent is particularly vulnerable to the impacts of climate change, and it is estimated that Africa needs to mobilize trillions of dollars in climate finance in order to adapt to the effects of climate change and transition to a low-carbon economy.
The African Carbon Markets Initiative has the potential to play a significant role in mobilizing climate finance for Africa. The initiative has the support of a wide range of stakeholders, and it is well-positioned to help Africa develop a sustainable and equitable carbon market.