Abidjan, Côte d'Ivoire - From 6 to 8 August 2024, Abidjan hosted a decisive workshop for West Africa's climate future. Organised by the Economic Community of West African States (ECOWAS) Commission, the event brought together representatives from member states, regional institutions and carbon market experts to lay the foundations for a standardised carbon credit market. This initiative aims to make West Africa a key player in the global carbon credit market, while meeting the urgent need to mitigate the effects of climate change in a particularly vulnerable region.
A critical climate context and under-exploited opportunities
Africa, which is responsible for less than 4% of global greenhouse gas emissions, is disproportionately affected by climate change, with extreme events such as droughts, floods and desertification. According to the African Development Bank (AfDB), these impacts could reduce annual economic growth in sub-Saharan Africa by between 2% and 4% by 2040.
Despite this reality, the continent remains under-represented on the global carbon credit market. Only 2% of climate projects financed worldwide result in commercial transactions in Africa.
In her opening speech, Mrs Massandje Touré-Litsé, ECOWAS Commissioner for Economic Affairs and Agriculture, stressed the importance of this initiative for the region, while acknowledging the obstacles to be overcome. ‘Between 2010 and 2023, the ECOWAS region issued only 9% of Africa's voluntary carbon credits, three times less than Kenya alone’, she explained. This lag can be explained by institutional weaknesses, a lack of knowledge of carbon-related financial mechanisms, and asymmetric information between sellers and buyers of carbon credits.
Mr Parfait Kouadio, Director of Cabinet and representative of the Côte d'Ivoire Minister for the Environment, Sustainable Development and Ecological Transition, reiterated the urgent need for action and announced the creation of a Carbon Market Bureau in August 2024, signalling the country's commitment to playing an active part in this regional dynamic.
An ambitious project to capture a share of the global carbon credit market
Aware of these challenges, ECOWAS has taken the ambitious step of creating a standardised market for carbon credits in West Africa. The Abidjan workshop, organised for this purpose, marked a key stage in the development of this market. Discussions focused on the regulatory, institutional and technical foundations needed to put in place a solid framework guaranteeing transparency and efficiency in carbon credit transactions.
The aim of the workshop was to validate a number of crucial technical documents: an analysis of the region's carbon reduction and sequestration potential, a diagnosis of the measures taken by Member States to implement Article 6 of the Paris Agreement, a report on the baseline situation taking into account the relationship between carbon markets (voluntary, regulated, national and international), and a draft regulatory and institutional framework to regulate the regional carbon market.
A regional market, a global challenge
The ECOWAS initiative for a standardised market in carbon credits could transform the climate and economic landscape of West Africa. By valuing efforts to reduce emissions, this market would not only mobilise funding for regional climate projects, but also stimulate sustainable development and innovation.
The Abidjan workshop marks an essential stage in the implementation of this ambitious vision. The rich and constructive discussions clarified the issues, refined the technical documents and strengthened the political commitment around this project. By creating a credible, transparent and inclusive market, West Africa could finally capture a significant share of the global carbon credit market, helping to combat climate change while offering economic opportunities to its people.
The discussions held in Abidjan bear witness to a collective determination to change the paradigm, and with the support of local and international players, West Africa is well on the way to transforming its climate vulnerabilities into economic assets.