Background and Objective
Carbon market participation by Eastern African countries has continued its upward trajectory in recent years. However, many countries aspire to increase their representation in the global carbon market and will require additional technical capacities and regulatory frameworks to make use of novel market mechanisms under Article 6. While many African states had limited participation in past carbon market mechanisms, Uganda has been a notable exception. With over 25 programmes and project activities conducted under the Clean Development Mechanism (CDM), it is one of the most successful CDM host countries in Eastern Africa. Building on that success, Uganda and other Eastern African countries aim to become even more actively involved in Article 6 activities under the Paris Agreement. The Global Carbon Market project supports countries in the region, both in preparing and using market-based instruments and in accessing climate finance to implement their nationally determined contributions (NDCs).
Implementation
Capacity-building in relation to carbon markets and particularly the Paris Agreement’s Article 6 is an important part of the project. Policy-makers are sensitized to market mechanisms and trainings are developed and implemented for regional delegates involved in international climate change negotiations. Strong private sector participation in the global carbon market is also promoted by identifying and disseminating information on nationally appropriate project activities and mitigation technologies. Carbon market instruments such as standardized baselines are developed for use in calculating emission reductions and to enable monitoring, reporting and verification (MRV) of climate action projects. Additionally, project activities focus on deepening the role of women and youth in the sector. Regional dialogue is promoted, and workshops are held to support the formalization of conditions needed to enable the African private sector to effectively participate in the global carbon market. To this end, the Global Carbon Market project supports the operationalization of the Eastern African Alliance on Carbon Markets and Climate Finance in matters concerning climate finance and carbon pricing.
Milestones and Outlook
As part of the project, public, private and civil society representatives from the wider Eastern Africa region have received training on carbon pricing, carbon markets, and climate finance. The project team also assisted countries in the region in establishing the Eastern Africa Alliance on Carbon Markets and Climate Finance with the aim of intensifying both regional cooperation and readiness to use new market mechanisms. Studies and blueprints have been published to provide guidance for countries of the Eastern Africa Alliance on key institutional decisions and actions regarding Article 6 as well as to provide relevant information for further private sector engagement in the region. Negotiators from Eastern Africa have been supported to actively participate in international climate negotiations through the development of a negotiators handbook on Article 6, and by conducting COP preparatory and debriefing workshops. The project has supported training courses and conferences specifically targeting youth and women, and has launched a mentorship program for young women entering the sector. The project also works to advance the enabling regulatory environment for carbon markets, for example, by developing standardized baselines for multiple Eastern African countries and supporting the Ugandan government with its long-term climate strategy and NDC update.