Africa is fast emerging as a hotspot in the global carbon credit business, with nearly 2,000 projects listed across the continent as of March 2024.
However, while billions are flowing into the voluntary carbon market (VCM), questions remain over who really benefits.
The findings were presented during the 2024 State of Africa’s Environment Report launch held in Nairobi, Kenya, an event organised by the Centre for Science and Environment (CSE) in partnership with the Media for Environment, Science, Health and Agriculture (MESHA).
Journalists from across the country attended the summit which sought to find solutions to health and environmental challenges facing the continent.
According to the report presented by Trishant Dev, CSE’s Programme Officer for Climate Change, Africa’s carbon economy is expanding rapidly, especially in clean cooking and forestry projects.
Across the continent, 821 cookstove initiatives have already generated credits worth 86 million tonnes of CO₂ — three times Kenya’s annual emissions in 2022.
Forestry and land-use projects have contributed another 144 million credits, making carbon trading a potential multi-billion-dollar industry for Africa.
Clean cooking solutions remain a central focus, with developers earning US$70–US$280 per stove in carbon credits over five to seven years, despite production costs as low as US$2–US$20.
However, Dev warned that most households are not receiving a fair share of these revenues, with some communities even paying for cookstoves that generate profits for private developers.
Forestry projects promise environmental and livelihood gains but have also raised concerns about foreign investors dominating profits.
In some cases, African communities signed away carbon rights for 20 years without fully understanding the agreements, receiving only seedlings and training while developers cash in on multi-million-dollar credit sales.
Experts at the Nairobi event urged African governments to establish clear regulatory frameworks, transparent contracts, and equitable benefit-sharing mechanisms to ensure local communities benefit directly from carbon trading.
“With the right safeguards, Africa can lead the world in carbon markets,” Dev said. “Without them, we risk a new wave of exploitation — this time in the name of climate change.”
