An overview of carbon markets as an effective policy tool for mitigating climate change: Policy brief 24

Abstract

There has been growing interest in carbon trading as a solution for both climate mitigation and adaptation. In Africa, this interest has been driven largely by the limited availability of public finance for climate change adaptation at the same time as the costs of weather and climate change are increasing exponentially. This policy brief outlines the role of carbon trading in supporting climate change mitigation policies while promoting sustainable development in Africa, the challenges associated with carbon markets, and makes policy recommendations for decision makers. Carbon markets offer African decision-makers a unique opportunity to tackle climate change, promote sustainable development and unlock economic opportunities. By embracing carbon markets, African countries can attract investment, transfer clean technologies, and contribute to global emission reduction targets. However, filling capacity gaps, putting in place supportive policies and ensuring access to finance are essential to realize the full potential of carbon markets for Africa's sustainable future.