Expert views on spinning carbon markets and investments into gold flooded the Africa’s Green Economy Summit (AGES). The investment pitches showcased how companies are tackling climate change and sustainability across the continent, offering a unique glimpse into innovative approaches shaping the future of green finance.
“The US pulling out of the Paris Agreement calls into question whether setting up carbon markets in Africa will find any takers.”
At the heart of discussions was the adaptation of carbon market concepts by African nations, redefining traditional models to suit local needs. Vlinder, a standout participant at AGES, presented its visionary Papariko Mangrove Project in Kenya – aiming to restore degraded mangrove ecosystems while promoting climate resilience and community empowerment through sustainable practices.
“Mangrove ecosystems remove carbon from the atmosphere at a rate 10 times greater than other forests.”
Robin Bartmann, Vlinder’s COO, delved into pricing nature through carbon markets during AGES’s Carbon Markets Masterclass. Bartmann emphasized the crucial role of mangrove ecosystems in sequestering carbon effectively, shedding light on key learnings from initiatives like Papariko. The project highlighted essential strategies such as gender empowerment and blended finance for long-term success.
“Women are central to the solution; they are taking leadership roles in managing and implementing the project.”
Olivia Tuchten, a climate change advisor at Promethium Carbon, echoed the sentiment that nature-based solutions offer substantial opportunities but require distinct business models for success. She urged stakeholders to recognize that ventures in green finance demand a different approach compared to conventional sectors like mining or retail.
“Business models may need to be looked at differently because project developers need to know that returns are different from mines.”
In navigating the complexities of securing carbon credits, Tuchten emphasized the importance of demonstrating “additionality” – showcasing genuine emission reductions beyond standard practices. The process underpins creating impactful projects aligned with sustainable development goals while attracting necessary investments for scaling up operations.
“Additionality has to be demonstrated – emission reductions must go beyond business-as-usual activities.”
Diving deeper into Africa’s climate finance landscape, Olufunso Somorin from AfDB highlighted challenges hindering broader private sector involvement despite immense potential. Emphasizing support for homegrown initiatives through programs like ACSP, he outlined efforts aimed at amplifying African-led projects within evolving global investment frameworks.
Olufunso Somorin stated that only 17 project developers drive most carbon projects on the continent.
As sessions unfolded at AGES, industry leaders grappled with derisking strategies to attract private sector engagement amidst perceived financial uncertainties. Barbara Buchner underscored existing gaps in climate financing on the continent due to risk aversion among investors but also heralded an era ripe with unprecedented opportunities for transformative green investments across Africa.
Barbara Buchner noted that current climate finance covers less than a quarter of what is needed in Africa.
Sanlam Investments’ CEO Carl Roothman painted a promising picture of increased global interest in funding sustainable projects within Africa’s evolving economic landscape. However, he cautioned against complacency and urged stakeholders to envision grander solutions while leveraging international support for bolstering regional sustainability initiatives.
Carl Roothman shared his optimism about global capital inflows energizing African economies towards greener pathways.
Lawrence Cole-Morgan from Standard Bank provided insights into monetizing natural capital systems sustainably while acknowledging evolving banking perspectives around ecosystem services valuation. His remarks stressed careful navigation within nascent sectors like carbon credit trading where innovative financing mechanisms play pivotal roles in driving ecological conservation efforts forward.
Leon van Wyk from Lesedi raised concerns about short-sighted approaches dominating some decarbonization efforts without addressing long-term grid stability challenges critical for ensuring sustained environmental impact over time.
Industry experts convened on addressing critical data deficiencies plaguing effective decision-making processes within African climate finance landscapes as they advocated prioritizing significant investments towards robust data infrastructure development.
The discourse surrounding big data acquisition emerged as a pivotal catalyst shaping informed policy decisions geared towards maximizing environmental preservation efforts across diverse economic sectors.
As stakeholders continue charting pathways towards sustainable development through enhanced financial instruments utilization within emerging markets,
the convergence between environmental conservation imperatives and economic prosperity remains central
to fostering resilient ecosystems capable of supporting thriving communities well into the future.
