Africa’s readiness for carbon markets ‘crucial for climate action’

Continent to contribute to emission reduction goals
Pivotal strides towards global climate solutions were made during COP 28, the EIF said.
Ellanie Smit
Namibia hosted a session at the 28th United Nations Climate Change Conference (COP 28) last week in Dubai to help understand what Africa needs to be ready for carbon markets.
The panel included speakers from Climate Balanced, Perspective Climate Group, the International Emissions Trading Association and the International Carbon Registry, who explored the current and future needs for carbon markets in both private and public sectors.
According to a statement by the Environmental Investment Fund of Namibia (EIF), Africa’s readiness for carbon markets is crucial for effective climate action, considering its unique challenges.
It said the focus should be on understanding specific needs like building skills, creating policies, identifying projects and sharing technology.
“Collaboration, strong monitoring systems, funding access, involving communities, adapting to change and connecting markets are also important.”
The EIF added that this approach positions Africa to contribute significantly to global emission reduction goals while benefitting economically and environmentally from sustainable development initiatives.

Pivotal strides
During the fifth day of COP 28, pivotal strides were made towards global climate solutions, it said.
The high-level roundtable on hydrogen showcased 39 countries endorsing the Hydrogen Declaration of Intent, a collaborative effort to mutually recognise hydrogen certification schemes.
“As part of COP 28’s mission to accelerate climate solutions, a significant highlight was the Energy Day roundtable on the industrial transition accelerator. Key stakeholders in technology, infrastructure, policy-making and finance convened to address challenges and drive joint solutions.”
The EIF added that gender equality and climate action took centre stage with the launch of the COP 28 Gender-Responsive Just Transitions and Climate Action Partnership. A total of 60 countries endorsed this partnership, affirming their commitment to equal opportunities and mainstreaming gender in the implementation of the Paris Agreement.
According to the EIF, the finance, trade and gender equality snapshot from Day 5 highlighted significant contributions, including banks from the United Arab Emirates committing US$272 billion (about N$5.1 trillion at Friday’s exchange rate) in sustainable finance, multilateral development banks unlocking vital climate finance, and the launch of the Global Climate Finance Centre by the Abu Dhabi Global Market.

Cooling pledge
Meanwhile, the Global Cooling Pledge saw over 60 countries pledging to substantially reduce global cooling emissions by 68% by 2050, EIF said.
COP 28’s focus on trade solutions included six panel sessions exploring the importance of scaling trade solutions across borders.
Discussions revolved around accelerating the transition to net-zero economies, addressing the critical role of trade finance and technologies, and ensuring collaboration between public and private sectors for supply chain resilience and human capital development.
Furthermore, a report which was unveiled during the conference, titled the ‘Global Cooling Watch’, presented measures to address the rising challenge of the cooling sector.
“Predicted to more than double by 2050, emissions from the cooling sector pose a significant threat. Key measures, including passive cooling strategies, higher energy efficiency standards and a faster phase-down of climate-warming refrigerants, could cut predicted emissions by 60 to 96%. This could save end-users up to US$1 trillion annually and the power sector up to US$5 trillion.”
However, the EIF said the urgency of action is paramount, given the estimated 2.3 billion people still using polluting fuels for cooking.
Lack of progress in clean cooking is costing more than US$2.4 trillion annually, underlining the critical need for ambitious climate action to enhance health, gender, climate and environmental outcomes.
It added that the Global Cooling Pledge, Gender-Responsive Just Transitions and Climate Action Partnership, advancements in hydrogen initiatives, and recognition of energy transition leaders all contribute to COP 28’s legacy. It aligns with the theme of ‘unite, act and deliver’, echoing the urgent call to address climate challenges collectively, the EIF said.

Transformative change
“COP 28 is not merely a conference; it's a catalyst for transformative change. The commitment shown in endorsements, partnerships and discussions reflects a shared responsibility to mitigate climate change’s impact.
“As COP 28 unfolds, the world unites to act decisively, delivering solutions that resonate beyond borders,” it said.
COP 28 kicked off in Dubai on 30 November and will draw to a close today, 12 December. It brought together global leaders, negotiators and stakeholders at Expo City Dubai.
With over 70 000 participants, including heads of state, industry leaders and experts, it aims to address climate challenges and deliver the inaugural global stocktake as per the Paris Climate Agreement.