African states finally team up for a bigger cut of carbon‑market billions

Countries are ramping up efforts to tap carbon markets through regional alliances and sector deals in aviation and shipping.

By Conrad Onyango, One Planet Agency

African countries are accelerating efforts to tap into global carbon markets, betting on regional alliances and targeted sector partnerships to unlock climate finance and strengthen their negotiating power.

The latest push comes from Southern Africa, where eight countries formally launched the Southern Africa Alliance on Carbon Markets and Climate Finance on March 25, 2026, in Zimbabwe.

The bloc — bringing together Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Zambia and Zimbabwe — said in a joint statement that they want to coordinate how individual countries engage with carbon trading under Article 6 of the Paris Agreement.

The move reflects a growing shift away from fragmented national approaches toward collective strategies that can attract investment and improve credibility in global markets.

“Unity of purpose is key to unlock carbon and climate finance while ensuring environmental integrity, achievement of NDCs, and meaningful sustainable development outcomes that benefit people of the region,” said Zimbabwe’s Permanent Secretary for Environment, Climate and Wildlife, Ambassador T.T. Chifamba, during the launch.

Member states said in a joint statement that the Alliance will act as a shared platform to align regulations, build technical capacity and engage private‑sector players and financiers. It is also expected to support peer learning and strengthen institutional frameworks — areas that have historically slowed Africa’s participation in carbon markets.

“The Alliance supports countries in making informed, nationally determined choices aligned with their development priorities,” according to the statement.

Across the continent, there have been growing calls for coordination, with the Committee of African Heads of State and Government on Climate Change (CAHOSCC) advocating for regional blocs to advance Africa’s interests in global climate negotiations.

In East Africa, individual countries are also exploring targeted carbon‑market opportunities in high‑emission industries.

Last month, Tanzania and Djibouti opened talks on a strategic partnership focused on aviation and maritime transport, two sectors on the continent that are under growing pressure to decarbonise.

The discussions bring together Tanzania’s National Carbon Monitoring Centre and Djibouti’s Africa Sovereign Carbon Registry Foundation, with the aim of ensuring airlines and shipping companies contribute directly to climate‑action projects across Africa.

Tanzania sees an opportunity to position itself as a regional hub by leveraging its ports and airports, while Djibouti is offering a tested model.

“The country has already introduced a carbon‑pricing system for ships, requiring emissions reporting and payments in line with international standards. Revenues are being channelled into clean energy, forest conservation and coastal protection,” said Djibouti’s ASCR Secretary General, Ambassador Ahmed Araita Ali.

These talks signal a shift toward African‑led carbon‑finance systems designed to keep more value on the continent.

Analysts estimate that carbon‑credit prices could exceed US$60 per tonne after 2030, up from about US$21 in late 2025, opening up a major revenue stream for African economies.

Africa accounts for about US$200 million in the Voluntary Carbon Market (VCM), representing roughly 8% of global market value, despite generating around 16% of the world’s voluntary carbon credits. Across the continent, about 100 projects in 20 countries produce an estimated 90 million tonnes of emissions reductions each year.

Activity is heavily concentrated in five countries — Kenya, Zimbabwe, the Democratic Republic of the Congo, Ethiopia and Uganda — which together account for nearly 70% of Africa’s carbon‑credit output. Kenya alone contributes about a quarter of the continent’s credits.

Most of these credits come from avoided deforestation and clean‑cooking initiatives, alongside projects in land use, hydropower, wind and solar energy.

The global carbon market is currently valued at roughly US$1 trillion and projected to grow to US$2.4 trillion by 2030, according to the UN.

Regulatory hurdles, however, still stand in the way of unlocking this potential, with recent developments in Kenya offering major lessons on how host‑country rules can determine the success or collapse of projects.

Earlier in the year, clean‑cooking firm KOKO Networks — once generating up to six million Gold Standard credits annually — was forced to shut down after failing to secure government approval for its credits.

But the East African economy is pushing toward a clear regulatory regime, having launched a national carbon registry to manage credit issuance and ensure benefits reach local communities.

OPA News Agency