Carbon Credits: A Beacon of Hope for Forest Restoration in Africa

Carbon financing, through the instrument of carbon credits, has emerged as a promising solution in the fight against climate change. The concept is simple: a carbon credit represents a reduction or removal of one ton of carbon dioxide emissions. Companies can offset their emissions by purchasing these credits, thereby financially supporting projects that reduce or capture greenhouse gases.

The Plight of Africa's Forests

Africa is home to some of the world's most diverse and unique natural ecosystems. In 2020, Africa accounted for over 600 million hectares representing 16 percent of the world’s forested areas. A significant proportion, 46.5 percent, of these forested lands is situated in eastern and southern Africa, while 48 percent is found in western and central Africa, and a relatively smaller segment, 5.5 percent, is located in northern Africa.

The Food and Agriculture Organisation's?(FAO) Forest Resources Assessment published (2020) shows that Africa had the largest annual rate of net forest loss between 2010 and 2020, at 3.9 million hectares of forests every year. This is a huge jump from a net loss of 3.28 million hectares per year in 1990, which is further exacerbated by the fact that Africa has the least share of planted forests globally at 2 percent. Key among the problems facing African forests at the governance level is the lack of proper funding and management plans.

Carbon Financing as a Catalyst for Forest Restoration

All is not doom and gloom, Africa has shown an improvement in the conservation of mangroves over the past decade with the average annual rate of loss of mangroves dropping from 6,610 hectares in 1990 to 2000, to 2,330 hectares in 2010 to 2020. This has been made possible by the support of financing raised through carbon credit issuance. For instance, the Mikoko Pamoja Mangrove Project in Gazi Bay, Kenya, is a community-led initiative focused on conserving and restoring mangrove forests. The project utilizes carbon financing by generating carbon credits through mangrove conservation, which are then sold on the voluntary carbon market. The revenue from these credits is reinvested in the project and the local community, empowering women and creating sustainable livelihood opportunities.?

The project has successfully protected 117 hectares of mangroves, sequestering significant amounts of carbon dioxide and supporting biodiversity. It serves as a model for community-based mangrove conservation and has received international recognition for its innovative approach. The Mikoko Pamoja Mangrove Project demonstrates the power of carbon financing in supporting forest restoration and conservation initiatives, as well as supporting livelihoods and communities.

Carbon financing presents a powerful tool to support these forest restoration initiatives. It provides a financial incentive for maintaining and enhancing forest ecosystems. When a project successfully reduces or captures carbon emissions - for instance, through reforestation or improved forest management - it can generate carbon credits. These credits can then be sold on carbon marketplaces like Verst Carbon, providing funds to support the project's ongoing operations and further expansion.

Moreover, carbon financing can stimulate local economies. It often involves working with local communities, providing them with income opportunities such as planting and caring for trees. This not only supports forest restoration but also contributes to local socio-economic development. These additional benefits that go beyond greenhouse gas emissions (GHGs) avoidance and removal, such as positively impacting communities and biodiversity, are known as Co-benefits. Co-benefits improve the quality of a carbon credit and contribute towards unlocking additional financing to support forest restoration initiatives. This is a key consideration for us at Verst Carbon because we believe tangible benefits serve as an additional incentive for community members to participate in restoration activities.

The Future of Forest Restoration with Carbon Financing

In conclusion, carbon financing holds immense potential to support forest restoration initiatives in Africa. It provides financial resources, encourages sustainable practices, stimulates local economies, and promotes social well-being. While challenges remain, such as ensuring the transparency and effectiveness of projects, organizations like Verst Carbon are committed to overcoming these hurdles through the application of digital monitoring, reporting, and verification (dMRV).

Several projects in Africa have already demonstrated the potential of carbon financing. The Kasigau Corridor REDD+ Project in Kenya, for instance, has protected over 200,000 hectares of forest and generated millions of carbon credits. The project provides jobs to the local community and supports education and health initiatives. This success story illustrates how carbon financing can drive both environmental and social benefits.

We have also seen initiatives from African governments aimed at reversing this worrying trend. Kenya recently passed a presidential directive to raise the country’s tree cover to 30% by 2032, this is to be done through the planting of 15 billion trees. Whether or not this will be achieved remains to be seen, however, it is certainly a step in the right direction and something to be emulated across the continent if we are to reverse this trend and ensure a sustainable future for Africa and the world at large.