Africa’s carbon market has huge investment potential which is capable of impacting the continent’s socioeconomic development.
This was the summary of the interface and discussion sessions at the just concluded Pan-African Private Sector Environmental, Social, and Governance (ESG) Forum held in Lagos.
The ESG is a leading platform designed to champion sustainable business practices across Africa, concluded its 2024 edition with a resounding call to action for the sector to leverage the carbon market as a catalyst for investment to drive a greener, more inclusive future for Africa.
The 2024 ESG Forum with the theme “The Carbon Market: Driving Investment for a Sustainable Africa,” held on Wednesday, November 6, 2024 at the Civic Centre, Lagos, brought together prominent business leaders, policymakers, and sustainability experts to explore how the carbon market can unlock transformative opportunities for the continent.
Managing Director of BAT West & Central Africa, Yarub Al-Bahrani, set the tone for the day’s discussions in his welcome address, emphasising the private sector’s crucial role in addressing the climate crisis and driving sustainable development.
“Africa stands at the crossroads of unprecedented opportunity and pressing environmental challenges. As the world transitions to a low-carbon economy, the carbon market offers Africa a unique chance to lead in climate action while attracting much-needed investment for sustainable growth.
“By leveraging the carbon market, we can generate economic opportunities that uplift communities, advance clean technologies, and build more sustainable industries,” said Al-Bahrani.
Special Adviser to the Lagos State Government on Sustainable Development Goals (SDG),Dr Oreoluwa Finnih, who represented the Lagos State Governor, Babajide Sanwo-Olu, shared the state’s commitment to sustainability and good governance practices.
“Lagos state recognises the importance of ESG principles in driving a green and resilient economy. The state has taken several steps to advance ESG priorities, including pioneering waste-to-energy projects that convert solid and liquid waste into renewable energy sources, and establishing the Lagos carbon registry,” said Dr Finnih.
She also highlighted the state’s commitment to leading by example in transparency through its public-private partnerships in areas like infrastructure, healthcare, and waste management, which aim to reduce bureaucratic delays and improve citizen access to services.
During his keynote address, CEO Africa Carbon Market Initiatives, Paul Muthaura, expressed the need for collaborative actions to driving sustainable development.
He said “The carbon market stands as an opportunity for Africa businesses. It is a tool that enables us to harness our rich natural resources while driving investments that empower communities and protect our environment. Together, we can transform the challenges of climate change into pathways for economic growth, ensuring that Africa leads the world in creating a sustainable future”.
The forum featured a series of insightful panel discussions that delved into the multifaceted impact of climate change on African businesses, the financial challenges and solutions for decarbonisation projects, and the intricacies of the carbon market and carbon credits.
The speakers shared valuable insights on how companies can navigate the risks and seize the opportunities presented by climate change, as well as the innovative financing mechanisms and business models that can make decarbonisation more viable and attractive to investors.
Key speakers at the event included: Director General/CEO of National Environmental Standards and Regulations Enforcement Agency (NESREA), Dr. Innocent Bariate Barikor; Director General, Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kabir; CEO, Africa Carbon Markets Initiative, Kenya, Paul Muthaura; Special Adviser to the Lagos State Government on Climate Change, Titilayo Oshodi; President/CEO, Oando Clean Energy, Ademola Ogunbanjo; Director, Governance & Sustainability, Sahara Group, Ejiro Gray; Project Manager Africa, Green Bond Corporation, Cameroon, Jocelyne Landry Tsonang; Senior Deal Lead/Business Opportunity Manager, Shell Energy Nigeria, Afolabi Akinrogunde; Head of Strategic Partnerships, TGI Group, Habiba Suleiman among many others.
Part of the highlight of the event was the announcement of the Young Professional Mentorship Programme, aimed at gathering young sustainability enthusiasts to expand awareness and build capacity on ESG.
“This programme is a transformative step towards empowering the next generation of young sustainability leaders by fostering a community of passionate young professionals, we are not only expanding awareness around ESG but also building the capacity needed to drive meaningful change across Africa. Collaboratively, we can cultivate innovative solutions that will shape a sustainable future for our continent,” said Odiri Erewa-Meggison, Director, External Affairs BAT WCA & Chairman, ESG Forum Technical Committee.
The forum also emphasised the responsibility of the private sector, policymakers, and the broader stakeholder community to integrate sustainable practices into their operations and strategies.
At the close of the event, participants collectively pledged to be more responsible to ESG practices. This aimed at uniting stakeholders in the race for accountability in driving sustainable progress and addressing pressing environmental and social challenges.
According to the Africa Carbon market investment roadmap report, the continent has the potential to scale its carbon credit market 19-fold by 2030, supporting up to $6 billion of revenue and 30 million jobs. Beyond these opportunities, carbon credits also present a scalable option for effective climate finance in Africa that will materially aid decarbonisation on the continent, a crucial task in this decade.
