ESG African Summit: Experts Explore Opportunities and Challenges for Transforming Africa into a Carbon Credit Hub
Today, at the ESG African Summit, experts from various backgrounds explored the opportunities and challenges for transforming Africa into a carbon credit hub.
Historical Background of the Carbon Market
Afef Jaafar, energy and climate expert at the Tunisian Ministry of Industry, introduced the topic by recalling the historical background of the carbon market. She discussed the Clean Development Mechanism (CDM) of the Kyoto Protocol, which allowed industrialized countries to offset their emissions through projects in developing countries.
The Shift to Bilateral Carbon Credit Exchanges
With the Paris Agreement, carbon credit exchanges have become bilateral, involving commitments from all countries, including developing ones. However, Jaafar emphasized the need for vigilance to avoid "overselling" and respect Nationally Determined Contributions (NDCs). This framework reinforces opportunities while imposing increased caution in managing climate commitments.
Carbon Credits as a Pillar of ESG Strategies
Adrian Mill, CEO of ESS, presented carbon credits as a pillar of ESG strategies. He detailed three main approaches: reducing carbon footprint, investing in sustainable technologies, and offsetting unavoidable emissions through impactful projects.
Future Obligations and Regulatory Frameworks
Although these initiatives are currently voluntary, they are expected to become future obligations, anticipated by emerging regulatory frameworks in regions like Singapore and North America.
The Importance of Regulating the Voluntary Carbon Market
Anita Wieja-Caruba, from the Dubai Financial Services Authority, stressed the importance of regulating the voluntary carbon market to ensure its credibility. She mentioned international efforts, including those of the Iosco, to establish solid principles.
Long-term Inclusion of SMEs and the Role of CBAM
In the long term, Wieja-Caruba foresees a progressive inclusion of SMEs in these mechanisms, with tools like the Carbon Border Adjustment Mechanism (CBAM) playing a key role in incentivizing emission reduction.
Implications of CBAM for Tunisian Exporters
Mahjoub Languer, CEO of Polina Holding Group, highlighted the implications of CBAM for Tunisian exporters. Without adapted measures, these companies risk losing competitiveness in international markets.
The Need for Sectoral Carbon Balances and Improved Data
Languer emphasized the importance of establishing sectoral carbon balances and improving available data to identify priority sectors.
Seizing the Opportunity for Regulatory Frameworks and International Financing
According to Languer, Tunisia should view these constraints as an opportunity to structure an effective regulatory framework and attract international financing.
