Global experts advise on how Africa can secure a larger share of carbon market

By Christopher Bendana

Kampala

A well-defined legal framework is key to unlocking Africa’s carbon market potential, according to a leading expert.

Damien Ricordeau, co-founder of Hummingbird, a Paris-based decarbonisation company, told journalists during a webinar on Climate and Carbon Finance on March 12 that African countries with stable regulations would benefit more than those without.

“It is important to have a stable regulatory framework,” he advised.

Ricordeau was one of the presenters at the webinar organized by the Network of African Journalists Specialized in Sustainable Development and Climate Change. Other speakers included Al Hamdou Dorsouma, acting director of Climate Change and Green Growth at the African Development Bank (AfDB), and Jean Paul Adam, director of Policy, Monitoring and Advocacy in the Office of the Special Adviser on Africa at the United Nations in New York.

The webinar aimed to equip African journalists with basic knowledge of carbon markets and credits to improve reporting on the subject.

Currently, many African countries are developing strategies and policies to implement Article 6 of the Paris Agreement, which helps nations fund climate actions outlined in their Nationally Determined Contributions (NDCs). The article provides a basis for trading carbon credits among national governments, voluntary organizations, and international bodies.

Africa Receives Only ‘Crumbs’ from Carbon Markets

Al Hamdou Dorsouma of the AfDB told journalists that Africa receives only a small fraction of global carbon finance on average about 3%. He said this must change.

“Africa has not benefited from carbon markets despite its potential,” he said.

That potential includes vast carbon sinks ranging from the Kibaale Rainforest in Uganda and the Congo Basin to dryland soils in the Sahel. Dorsouma argued that the bank’s climate change strategy is an important tool to help African countries tap into carbon markets.

The AfDB’s Africa Carbon Support Facility aims to unlock climate finance across the continent by providing advisory services for carbon credit projects and building capacity. The facility also supports project developers in preparing Project Information Notes and Project Design Documents, which are requirements under the Clean Development Mechanism and are crucial for commercializing carbon potential.

Compliance Markets vs. Voluntary Markets

Paul Sebastien, director of Africa Carbon Solutions and a member of the African Sovereign Carbon Initiative (ASCI), advises African countries to focus on compliance markets. These are domestic programs that promote decarbonisation and energy transition based on the polluter-pays principle, as envisioned in the Kyoto Protocol.

He cites the European Union’s Emissions Trading System, which generates €95 billion in annual revenue, and Djibouti’s 2023 Carbon Sovereign Initiative as examples.

“Compliance carbon schemes clearly represent a direct opportunity for countries to generate sovereign revenue,” he said, contrasting them with the more promoted but problematic voluntary markets on the continent.

“Voluntary carbon markets are more complex, as they depend on demand from buyers for carbon credits. Africa has significant potential in this area, but it remains underdeveloped. In many countries, there is still a lack of adequate frameworks, clarity in government authorizations, and regulatory certainty to provide comfort to international investors.”

But, voluntary markets are currently providing that extra income to the ordinary tree farmer, and they can do better. There is only a need for robust governance control from national carbon agencies for equity.

A 2025 study by the United Nations Convention to Combat Desertification (UNCCD), Scaling Carbon Finance for Land, Livelihoods and Long Term Resilience, highlights that the absence of a standardized legislative framework in voluntary carbon markets can lead to inconsistencies in how carbon credits are defined, priced, and verified.

In contrast, compliance markets like Djibouti’s are governed by domestic regulations. Djibouti charges a levy of $17 per ton of CO₂ emitted by maritime and aviation businesses transiting through its territory, with revenues financing social services.

Understanding Carbon Markets

Carbon markets trade carbon credits certificates issued after verification that a project developer has reduced or removed one ton of carbon dioxide.

The World Bank categorizes carbon credits into three types:

There are International crediting mechanisms, for example the ones under Article 6 of the Paris Agreement.

There are government crediting mechanisms like the Australian Carbon Credit Unit. Lastly they are Independent crediting mechanisms like Verra, and the Gold Standard

It also defines four market segments:

First there are International compliance; here countries buy credits to meet greenhouse gas commitments.

Then, there are voluntary where private entities buy credits for voluntary mitigation pledges.

There are domestic compliance where companies buy credits to comply with national laws.

Lastly, are results-based finance where governments or international organizations pay host countries for emission reductions.

Examples include improved cook stoves that reduce charcoal use, wetlands that store carbon, and offset programs like Sprout Water in Uganda. Operating in Kyenjojo and Kyegegwa districts, Sprout Water provides ceramic water filters (branded Purifaaya) that eliminate the need to boil water, thus reducing deforestation. Each filter generates two carbon credits, and the organization has distributed over 60,000 filters.

UNCCD Recommendations

The UNCCD calls for private sector investment in high potential but underrepresented carbon projects, including regenerative agriculture in semi-arid regions, mangrove restoration in arid coastal zones, and enhanced rock weathering on degraded soils. These can sequester carbon while combating land degradation.

All carbon projects should support economic development and local communities, restore land, boost biodiversity, and remove CO2 The UNCCD also calls for a more inclusive framework to ensure equitable benefit-sharing and active stakeholder engagement. With fair compensation and alignment with local priorities, carbon finance could drive poverty alleviation, job creation, and rural development.

Local Voices

Kabaka Mutensa, Africa Operations and Engagement Officer at BioCarbon Standard based in Kampala, argues for promoting domestic carbon trading so local people appreciate carbon markets’ role in limiting greenhouse gas emissions.

“There should be a threshold up to which emitters are held responsible for additional emissions,” he said. “Emitters should buy carbon credits for these extra emissions.”

He notes that while countries like Ghana and South Africa are advanced, others still struggle to understand carbon markets. He suggests countries develop regulations according to their level of understanding.

“There is an imbalance some countries are benefiting more than others. Perhaps the African Union should provide guidance,” he said.

Juliet Nanyonga, a carbon project developer with SunCulture in Uganda, echoes Sebastien’s advice: African countries should adopt and operationalize parts of Article 6 of the Paris Agreement.

“International carbon trading under Article 6.2 offers better prices and higher integrity,” she explained. “Through these agreements, other ventures can be opened.”

While carbon markets provide extra income for small-scale farmers in Uganda and across Africa, the verification process remains mathematically complex for many rural people. Many do not understand what a ton of carbon means or how their payments are calculated.

“There is a strong need to close the knowledge gap on carbon markets,” said Mutensa, who organizes Carbon Tuesday a monthly evening meeting in Uganda to discuss carbon market topics.

Compliance markets appear the better option, and countries should work with the African Sovereign Carbon Initiative under the African Union to scale up. The goal is to ensure fair prices so a small-scale farmer in Buhweju, Uganda, earns the same as a farmer in the Netherlands. Only then can Article 6 of the Paris Agreement make sense to ordinary people in the Global South and the concept of carbon colonialism will die.

The story was first published by InfoNile on the on the 9 April 2026.