This UNU-INRA report on Carbon Market Economies: Crafting a New Narrative of Opportunity and Sustainable Growth for Climate Action in Africa,” critically examines the role of voluntary carbon markets (VCMs) in Africa, highlighting both their promise and pitfalls.
It shows that while Africa accounts for 16% of the global carbon market and initiatives like the Africa Carbon Markets Initiative (ACMI) aim to unlock billions in revenue and millions of jobs, structural inequities, weak governance, and the commodification of nature risk undermining their potential.
Case studies such as Mozambique’s low-priced carbon deals and Kenya’s community-led mangrove projects illustrate both challenges and opportunities. The report stresses that Africa must move from being a passive participant to a leader in shaping carbon markets by strengthening institutional capacity, ensuring transparency, demanding fair benefit-sharing, and aligning carbon trading with sustainable development goals.
This report essentially argues that, carbon markets can support climate action and economic growth only if they prioritise justice, equity, and the empowerment of local communities rather than profit-driven imperatives.
