· 2 min read
illuminem summarises for you the essential news of the day. Read the full piece on African Business or enjoy below:
🗞️ Driving the news: African carbon project developers face fresh uncertainty as Donald Trump's return to the US presidency threatens funding and demand for carbon credits
• Cuts to USAID are already disrupting project financing, while Trump's climate-sceptic stance may influence US corporate engagement with voluntary carbon markets
🔭 The context: Although carbon markets operate independently of government mandates, the US has played a quiet but crucial role in supporting Africa’s carbon efforts
• USAID funding and net-zero commitments by American firms have underpinned demand and development. Trump's administration is reversing many of these policies
🌍 Why it matters for the planet: Carbon markets are vital for financing emission reduction and carbon removal projects in developing regions
• With Africa potentially earning $100bn annually from carbon markets by 2050, a retreat by US actors could stall progress on climate finance and mitigation
⏭️ What's next: African developers will need to seek alternative funding sources and diversify demand beyond the US market
• The global voluntary carbon market may fragment further as political uncertainty increases investor and buyer caution
💬 One quote: “Trump’s return has cast a long shadow over the fragile progress we’ve made in building African carbon markets,” — Ben Payton, African Business
📈 One stat: The African Carbon Markets Initiative estimates the continent's carbon market potential could reach $100bn annually by 2050
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