By Business Insider Reporter
Africa has taken a bold step toward reclaiming its role in the global carbon economy, with the launch of three landmark initiatives by the African Union Development Agency (AUDA-NEPAD) aimed at ensuring climate justice, transparency, and fair access to carbon market revenues.
Announced today during a high-level dialogue in Nairobi, the measures are designed to reshape how Africa engages with carbon markets, ensuring that the continent’s vast carbon sink potential translates into real climate and development benefits for its people.
With the escalating effects of climate change – from floods and droughts to food insecurity and biodiversity loss – these new measures are expected to play a transformative role in boosting climate resilience and unlocking green finance for adaptation and mitigation efforts.
Continental response to a global challenge
AUDA-NEPAD’s announcement includes the African Integrity and Equity Principles for Carbon Markets – a first-of-its-kind framework placing African values and social equity at the heart of carbon trading.
The body is also introducing a Continental Coordinating Mechanism – to harmonise the carbon strategies of all 55 AU member states and ensure Africa speaks with one voice in global negotiations.
There is also a Digital Tracking Platform for Article 6 Readiness – which will monitor real-time progress on implementation, investment, and capacity-building under the Paris Agreement’s carbon trading rules.
These interventions are expected to reverse Africa’s marginalisation in carbon finance, a space where the continent contributes the least to global emissions but suffers the most from climate impacts.
“This is Africa stepping up not just to participate in carbon markets, but to shape them,” said Dr. Deborah Mlongo Barasa, Kenya’s Cabinet Secretary for Environment. “Our integrity principles ensure we don’t just sell credits – we sell impact, fairness, and development.”
Implications for financing gap
According to the African Development Bank, Africa requires more than US$250 billion annually to meet its climate targets, yet less than 4 percent of global climate finance flows to the continent.
By improving coordination and transparency, the new carbon governance system could attract billions in investment – particularly in reforestation, renewable energy, clean cooking, and regenerative agriculture.
For countries like Tanzania, which boasts vast forest reserves and growing interest in voluntary carbon projects, this initiative offers a chance to scale up nature-based solutions while generating revenues for communities and national climate budgets.
Boost to investor confidence
The digital tracking platform and integrity standards are expected to address long-standing concerns over the credibility of African-issued carbon credits – a key reason why global buyers have been hesitant to engage at scale.
“Without a harmonised platform, the risk of fragmented, unregulated markets was high,” said Andrew Ocama, Coordinator of the Eastern Africa Alliance on Carbon Markets. “With this new coordination mechanism, investors can now view Africa as a reliable partner.”
Private sector actors, including developers and advisory firms, welcomed AUDA-NEPAD’s leadership.
Tijani Nwadei, a carbon finance consultant, said the move will accelerate deal flow and help ensure that African countries retain a fair share of revenue, instead of merely serving as project hosts.
Strategic opportunity for Tanzania
For Tanzania, which has signalled its readiness to participate in global carbon markets – including through forest preservation, sustainable tourism, and clean energy – the platform provides an ideal foundation to formalise domestic carbon credit systems; attract investors aligned with AU-endorsed principles and integrate carbon finance into its Vision 2050 green economy ambitions. With large swathes of natural forest and active REDD+ programmes, Tanzania could position itself as a regional leader in carbon offset supply, while enhancing local livelihoods and biodiversity.
