Dr. Mahmoud Mohieldin, UN Climate Change High Level Champion for Egypt and UN Special Envoy on Financing 2030 Sustainable Development Agenda, said that the Africa Carbon Markets Initiative (ACMI) is a model for regional cooperation driven by great potential, official support, and effective private sector participation.
This came during his participation in a session on carbon markets in Africa, within the events of the Africa CEO Forum in the Ivorian capital, Abidjan.
Mohieldin highlighted the progress in the path of activating ACMI, that has been expanding since its launch during COP27 in Sharm El Sheikh, explaining that the HLC, the Egyptian and Emirati presidencies of COP27 and COP28 are working to support the initiative.
Mohieldin stated that financing for climate and development action in Africa and developing countries in general is insufficient, unfair and inefficient, which requires these countries to consider climate finance as a development finance, and also requires African countries to make the most of carbon markets so that they contribute more effectively to climate and development finance.
The climate champion noted that African carbon markets need a regulatory and legislative framework that defines the roles of governments, the private sector and civil society in activating them in a way that maximizes the benefit of them, pointing out the necessity of setting clear governance standards for the performance of the participating parties while obliging them to transparency and disclosure.
Mohieldin said that the vision for African carbon markets should aim to achieve all climate goals including emissions reduction and achieving the goal of NetZero, as well as achieving other goals related to nature, resilience and dealing with the loss and damage resulting from climate change.
He stressed the importance of determining the price of African carbon credits in a way that enhances the ability of the continent to finance climate and development action, and integrating these markets with the whole ecosystems, highlighting the necessity of determining the kind of the carbon market whether it will be compliance or voluntary according to its objective, As well as identifying mechanisms for managing cross-border carbon trade, especially when dealing with countries and entities that have already developed regulatory frameworks for carbon trading such as the European Union.
Mohieldin expressed his happiness with the momentum behind ACMI, and the ongoing work to define its regulatory framework and working mechanisms in a way that achieves the desired benefits.