African nations could unlock a substantial revenue stream of $82 billion per year through carbon credits, according to insights from the United Nations Economic Commission for Africa. Encouraging African member states at the 2023 COP 28 in Dubai, the commission advocates for the establishment of a comprehensive carbon market. This market, touted as a sustainable financing alternative, aims to replace traditional official development assistance.
.png?width=696&height=464&name=Africas%20$82%20billion%20carbon%20credit%20potential_Aerial%20view%20of%20a%20large%20waterfall%20in%20the%20middle%20of%20a%20lush%20forest%20in%20Ghana_visual%201%20(1).png)
Aerial view of a large waterfall in the middle of a lush forest, Ghana.
The Government of Ghana has taken a significant step by authorising the transfer of mitigation outcomes for a second project to Switzerland during COP 28. This initiative involves Ghana trading carbon credits for payment while retaining developmental benefits domestically. The project focuses on transforming Ghana’s waste sector, generating high-quality organic fertiliser, and creating over 1000 direct jobs, particularly for women.
Read more: Rising demand for nature-based solutions spurs evolution in investment landscape
At COP 28, Dr. Kwaku Afriyie, Ghanaian Minister for Environment, Science, Technology, and Innovation, highlighted the country’s unique position as the sole African country authorising two projects under the same Article 6 agreement with Switzerland. The ‘Integrated Waste Recycling and Composting for Methane Reduction in Ghana’ project, with its formal pre-approval, aligns with Ghana’s emission reduction goals, sustainable waste management, and the creation of green jobs.
During the Africa Day sideline event at COP 28, Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa, emphasised the immense potential of developing the African carbon market. Gatete suggested that nature-based carbon credits, priced at $20 per piece, could generate an annual revenue of $82 billion—highlighting the significant financial opportunity compared to official development aid.
Read more: The power of sustainability: Why investing in sustainability drives faster company growth
In its dedication to developing and implementing comprehensive nature-centric solutions, DGB Group is steadfast in acknowledging the vital role that nature-based credits play in realising a net-zero future while preserving our precious ecosystems. Harnessing the potential inherent in nature, we seize the opportunity to devise approaches that not only address nature conservation but also actively promote the restoration of biodiversity. Through the utilisation of our premium nature-based credits, generated from our nature-focused projects, our aim is to establish a harmonious balance between human progress and conscientious environmental stewardship. This sets the stage for a sustainable and thriving planet. We invite you to join us on this transformative journey, embracing nature-based solutions as a cornerstone of our environmental strategies and contributing to a future where sustainability and flourishing coexist.
Partner with DGB for a flourishing path to nature restoration
