| dc.description.abstract | Plagued by the universal challenge of climate change, African states are faced with the dire issue of sourcing climate finance from sources other than government coffers and very limited donor funds. With the advent of the African Continental Free Trade Area (AfCFTA), the region finds itself in a unique position. It possesses the natural resources to scale up voluntary carbon markets, a multi-million dollar industry. Previously, where the structures did not exist to act as one common market, effecting a greater impact on the industry, the AfCFTA could not have come at a more opportune time. After critically examining the current status of voluntary carbon markets, their potential, the study established that there remain gaps obstructing achieving that potential. The main challenge is the fragmented nature of carbon market regulation among African states. This has resulted in uncertainty and lack of credibility of the very viable carbon credits. An efficient solution to this challenge would be to formalize the regulation of carbon markets, which would unify the market on the continent. Moreover, this would tackle issues of lack of credibility and clarity which over the course of time have seen investors reluctant to engage in what promises to be a booming sector. The efforts to formulate a framework, a seemingly tall feat, benefit from the existence of various fully functional carbon markets. The advantage is the ability to critically examine the established carbon trading schemes with an aim to learn from their mistakes and emulate their success, cognisant of the fact that a one size fits all approach would be detrimental. There are various specific market conditions and forces that would have to be taken into consideration such as legal, cultural, historical and in some cases political contexts. | en_US |
