Africa Carbon Markets Urged to Turn Potential into Investment and Delivery

October 15, 2026 in Land & Agriculture, Travel & Tourism by Editor

Africa’s carbon market leaders are shifting focus from potential to execution, calling for bankable projects, credible carbon credits, long-term investment and stronger community benefits at the CMAS 2026 summit in Kigali.

 

Africa must turn carbon its market potential into long-term investment, bankable projects and tangible community benefits, policymakers and investors said as the Carbon Markets Africa Summit (CMAS) 2026 opened in Kigali.

The summit, which opened on October 14, brought together representatives from 45 countries, including 21 African nations, amid a growing push to translate the continent’s climate resources into investment, verified emissions reductions and economic development.

Rwanda’s Minister of Environment, Dr Bernadette Arakwiye, said African countries had made progress in establishing carbon market frameworks, authorising projects and negotiating bilateral agreements, but warned that the market remained concentrated in a relatively narrow range of project types.

She called for greater diversification into renewable energy, electric mobility, waste management, industrial decarbonisation, agriculture and nature-based solutions.

“The question before us is therefore no longer simply whether Africa is ready. It is whether we can deliver at scale, with integrity and with innovation,” Arakwiye said.

She identified three priorities for expanding the market: methodologies suited to African conditions, financing to prepare projects for investment, and sustained demand at prices that reflect the value of African carbon credits.

“Trust is the currency of this market,” she said, urging buyers and investors to support credible projects with fair prices, long-term demand and patient capital.

Tanzania’s Minister of State in the Vice President’s Office responsible for Union Affairs and Environment, Hamad Yusuf Masauni, said Africa needed to demonstrate execution rather than continue to be defined by its potential.

He stressed that progress should be measured by the ability to take high-quality projects through verification, credit issuance and offtake agreements, rather than by the number of projects announced or developed.

“Credibility is built one verified tonne, one closed deal and one community that sees real benefit at a time,” Masauni said.

Maxwell Gomera, UNDP Resident Representative in South Africa and Director of the Africa Sustainable Finance Hub, said market infrastructure must ensure that financial value reaches the people and communities involved in carbon projects.

He called for stronger community rights, enforceable benefit-sharing arrangements, early-stage financing and partnerships that connect international buyers directly to local producers.

The emphasis on integrity was reinforced by Perumal Arumugam of the UN Framework Convention on Climate Change (UNFCCC), who said Africa should compete on the credibility and sustainability of its carbon credits rather than price alone.

“Africa should not compete simply by offering the cheapest tonnes,” he said, arguing that success should instead be measured by investment mobilised, emissions reductions achieved, benefits delivered to communities and the extent to which African countries retain control over their climate transitions.

Representing the African Union Development Agency-NEPAD, Esterine Fotabong highlighted the need for predictable project authorisations, functioning carbon registries and credible monitoring, reporting and verification systems. She also called for stronger African capacity in project validation and verification, alongside wider access to carbon finance in sectors such as agriculture.

Quality will determine access to global demand

Lukas Visek, Deputy Head of the European Commission’s Directorate-General for Climate Action Task Force for Carbon Pricing and Carbon Markets, signalled opportunities for international carbon credits in Europe but warned that buyers would demand robust environmental credentials.

“Additionality and permanence are not negotiable,” he said. “Quality, however, will be rewarded.”

The message raises the bar for African developers seeking international buyers, requiring credible evidence that projects deliver additional emissions reductions, maintain those benefits over time and align with national climate priorities.

Financing remained another major concern as representatives of the African Development Bank (AfDB), Development Bank of Southern Africa and Kigali International Financial Centre examined barriers to investment.

AfDB Director of Climate Change and Green Growth Anthony Nyong argued that carbon markets should be assessed through their contribution to development.

“We don’t have carbon projects. We have development projects,” he said.

DBSA Chief Investment Officer Greg Fyfe highlighted the role of development finance institutions in preparing projects, supplying patient capital and sharing risks that might otherwise deter private investors.

The opening sessions highlighted the central challenge facing Africa in turning its climate assets into credible, financeable investments while ensuring that the resulting economic and environmental benefits are shared fairly.

For the continent’s carbon markets, the next test will be whether policy frameworks, project pipelines and international demand can translate into completed transactions and lasting local benefits.