Carbon Credit & Offset Markets

Carbon markets allow investors and corporations to trade both carbon credits and carbon offsets simultaneously. The ASFI Carbon Credit & Offset Markets (CCOMs) cluster focuses on how to develop CCOMs to mitigate Africa’s environmental challenges.

Maximising carbon value

To accelerate the transition to a low-carbon economy, policymakers are increasingly turning to market-based solutions. Central to these efforts are carbon markets and their pricing mechanisms, which are being implemented globally to incentivize emissions reductions. By internalizing the cost of carbon, these markets drive innovation, enhance efficiency, and attract investment in clean technologies.

In this context, corporations and other stakeholders in carbon markets have increasingly focused on Africa. This attention stems from the continent’s vast potential for projects that can generate investable and tradable carbon credits. However, these projects are significantly shaped by country-specific and governance risks, especially given the provisions of Article 6.