Carbon markets under the Paris Agreement for African Private sector and NGOs: Policy brief 25

Abstract

The Paris Agreement, adopted in 2015, aims to limit global warming to well below 2°C and to continue efforts to limit it to 1.5°C above pre-industrial levels. Article 6 of the agreement emphasizes the role of non-state actors, including the private sector, NGOs and local governments, in achieving this goal. It encourages the participation of the private sector, NGOs and local governments in efforts to reduce greenhouse gas emissions and adapt to the impacts of climate change. It stresses the importance of engaging with non-state actors in the development and implementation of climate policies and encourages partnerships between governments and non-state actors. This brief provides insights for the private sector on the carbon mechanisms under the Paris Agreement, the implications for the African private sector and NGOs, opportunities, benefits, risks, and necessary steps for engagement in carbon markets, emphasizing the importance of leveraging Article 6 to achieve both corporate sustainability goals and national climate targets.