EU CBAM is the first of a range of anticipated mechanisms that charge import levies based on embedded carbon for specific (emission-intense) products. Introduced as a mechanism to avoid carbon leakage in the EU and to create demand pull for green industrialisation globally, CBAM has caused a lot of noise, concern, and discontent in Africa.…
Carbon markets - What is happening? COP29 outcomes created a UN-governed market, and a baseline that will be used for many future market and rule initiatives. COP29 operationalised two key mechanisms of Paris Treaty Article 6: (i) Bilateral trading- Article 6.2- governing country-to-country carbon trading, which is already being implemented in some contexts; and (ii)…
The two most pertinent results of the negotiations at COP29 are further clarity on Article 6 (governing carbon markets) and a last-minute agreement on climate finance, in the New Collective Quantified Goal (NCQG). This note captures the key outcomes and their reception and identifies the key implications and suggested priorities for Africa. Climate finance and…
As the global carbon market rapidly expands, the demand for high-integrity carbon credits—those that effectively drive both climate action and socio-economic development—has never been more pressing. Africa, with its abundant natural resources and vibrant communities, is uniquely positioned to seize this opportunity. However, to unlock its full potential, we must develop Benefit-Sharing Mechanisms (BSMs) that…