Introduction to Carborn markets - AU
Climate Action Platform for Africa (CAP-A)
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Abstract: This advocacy briefing prepared for the Africa Business Forum explores carbon market mechanisms in Africa and lays out a clear roadmap for enhanced participation and benefit-sharing. Africa?s potential for high-integrity climate projects remains largely untapped, with only a small percentage of credits issued globally. The brief defines voluntary and compliance carbon markets, explains mechanisms under Article 6.2 of the Paris Agreement, and outlines case studies like Ghana's ITMO transaction and Kenya?s KOKO fuel distribution model. Challenges include fragmented data, inadequate eligibility criteria, and lack of regional policy coherence. The document advocates for capacity building, platform innovation, and inclusive project design to ensure local value retention. Financial benefits from carbon credits?such as job creation, infrastructure development, and renewable energy deployment?are emphasized as transformational levers for development. UNDP, IKI, and other actors are highlighted as potential partners to scale Africa?s carbon ambition.