Why the legitimacy of carbon credits matters for African businesses

illuminem summarizes for you the essential news of the day. Read the full piece on Financial Times or enjoy below:

🗞️ Driving the news: Valerie Labi, co-founder of the German-Ghanaian startup Wahu Mobility, is advocating for a switch from petrol motorcycles to electric bikes in Ghana's delivery sector  
• This shift is financially supported through the sale of carbon credits, crucial for making the e-bikes affordable for their target market

🔭 The context: Wahu's strategy involves leveraging a bilateral agreement between Switzerland and Ghana, signed at COP27, to sell carbon credits. These credits subsidize the cost of their e-bikes, otherwise too expensive for widespread adoption  
• The broader carbon credit market is divided and scrutinized, with questions over the credibility and effectiveness of such credits.

🌍 Why it matters for the planet: Wahu's initiative reflects a growing trend of leveraging international agreements and carbon credit markets to support environmentally sustainable business practices in developing countries
• This approach can significantly contribute to reducing carbon emissions, especially in the transportation sector, which is a major contributor to global emissions

⏭️ What's next: The future of Wahu's e-bike initiative is closely tied to the stability and credibility of the carbon credit market, which is currently under scrutiny
• The success or failure of such ventures will play a significant role in shaping the role of carbon credits in global environmental efforts

💬 One quote: Valerie Labi on the necessity of carbon credits: "We cannot scale without carbon at that price point."

📈 One stat: The price of carbon offsets has plunged by over 80% in less than two years, illustrating the volatility and challenges faced by the carbon credit market.

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