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illuminem summarises for you the essential news of the day. Read the full piece on Business Insider Africa or enjoy below:
🗞️ Driving the news: The African Development Bank (AfDB) has announced the creation of the Africa Carbon Support Facility, an initiative aimed at scaling carbon markets and unlocking climate finance across the continent
• Unveiled at the Bank’s annual meeting in Abidjan, the facility will help African governments develop carbon trading regulations and build the necessary infrastructure to support both supply and demand in carbon credit markets
🔭 The context: Despite contributing less than 4% of global emissions, Africa receives only about 1% of global climate finance
• Its carbon credits — largely generated from forestry, agriculture, and land use — are currently traded in voluntary markets at lower prices than in regions with regulatory frameworks
• The new facility builds on momentum from the African Carbon Market Initiative (ACMI), launched at COP27, which aims to scale carbon credit generation to 1.5 billion annually by 2050
🌍 Why it matters for the planet: Enabling Africa to fully participate in carbon markets could dramatically increase funding for conservation, renewable energy, and land-based climate solutions
• Integrating carbon credits into African stock exchanges could raise credit prices and attract more private capital
• This initiative also represents a major step in recognising and monetising Africa’s natural climate assets, while promoting equity in the global carbon economy
⏭️ What's next: The facility is currently in the design phase, with implementation plans focused on regulatory development, market infrastructure, and capacity-building
• It may set the stage for carbon credits to become tradable commodities on African exchanges
• Close coordination with ACMI, national governments, and international buyers will be critical to scale the market and ensure integrity
💬 One quote: “Through this, we envision a future where carbon credits can become a tradable commodity on Africa's stock exchanges.” — Anthony Nyong, Director for Climate Change and Green Growth, AfDB
📈 One stat: Africa receives just 1% of global annual climate finance, despite being among the regions most vulnerable to climate change
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