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Africa Accounts for only 2% of Trading in the Global Carbon Market

According to a World Bank report released last year, “State and Trends of Carbon Pricing 2020”, there has been significant progress in the fight against global warming, but there is much more to be done. More than 70 countries have committed to working toward net zero emissions by 2050, and to enhance their international climate pledges under the Paris Agreement. How these government and private sector pledges will be translated into action will be crucial in ensuring whether global warming can be confined to below two degrees Celsius. Carbon emissions trading, including “cap and trade” systems, are key ways of reducing emissions. Africa accounts for only two per cent of trading in the global carbon market, with South Africa and Nigeria leading the way. There are, however, moves on the continent to increase the number of carbon reduction investment opportunities. The African Development Bank (AfDB) has launched a two-year technical assistance programme – the African Carbon Support Programme – but startups are also beginning to play their part, which is an extremely positive, if still embryonic, development.