Harnessing Africa’s Carbon Markets to Advance Climate and Development Goals
Africa Bulletin | July 2024

Harnessing Africa’s Carbon Markets to Advance Climate and Development Goals

Editor's Note

Welcome to your July edition of the Africa Bulletin.

This month, we look into Africa's carbon markets and how countries are harnessing it to advance their climate and developments goals. As the global community intensifies its fight against climate change, Africa is emerging as a key player in the global carbon markets. While still in the nascent stages, the continent’s engagement with carbon trading is growing, driven by innovative initiatives and a burgeoning recognition of the economic and environmental benefits.

Across the region, we focus on ALN Kenya's 70 years of impact, growth, and unwavering commitment to positioning their clients as industry leaders shaping regional and continental development. The firm has evolved alongside Kenya, expanding its clients and their reach across borders and making history in the process.

Our focus also delves into major African business headlines impacting the region and the globe at large. These stories combine with comprehensive reports centred on Africa's trade and economic outlook, sustainable development, infrastructure and urban rail corridors.

As always, we've curated news stories to navigate you through today's business environment, offering a global perspective on the legal issues relevant to your industry.

We are ALN. One region, One vision, One ALN.


Top Story

Harnessing Africa’s Carbon Markets to Advance Climate and Development Goals

As the global community intensifies its fight against climate change, Africa is emerging as a key player in the global carbon markets. While still in the nascent stages, the continent’s engagement with carbon trading is growing, driven by innovative initiatives and a burgeoning recognition of the economic and environmental benefits. According to the African Development Bank Group, carbon markets encompass a diverse set of systems regulated across different jurisdictions for trading greenhouse gas pollution rights.

These rights -?called allowances or permits -?are globally traded commodities and give the bearer the right to emit an equivalent amount of CO2 emissions. Carbon Trading in Africa, are generated from avoiding, reducing, or removing greenhouse gas emissions...Read more .


Top Business News making Headlines across Africa

  1. Africa | AfDB Tops 2024 Global Aid Transparency Rankings for the Second Year - The African Development Bank’s sovereign portfolio was recently acclaimed as the most transparent in the 2024 Aid in the 2024 Aid Transparency Index, released by the global advocacy...Read more.
  2. West Africa | ECOWAS Set to Unveil Single Currency - The ECOWAS currency is aspired to become a cornerstone of economic integration, streamlining trade and bolstering monetary stability across the region. Plans recently reached an advanced stage to launch the...Read more
  3. East Africa | EA Businesses Expand Footprints in Kenya - East African Community businesses are increasingly expanding into Kenya’s key sectors, including service, manufacturing, agriculture oil and gas, bucking a trend where Kenyan firms have long dominated...Read more
  4. Ethiopia / South Sudan | Ethiopia and South Sudan Greenlight Construction of Joint Oil Infrastructure - Ethiopia and South Sudan recently agreed to collaborate on the development of their oil sectors via a construction project. They resolved the idea during a key...Read more
  5. Egypt | Egypt’s USD 10 Billion Wind Farm Poised to Break Ground in 2026 - Egypt is taking a significant stride towards its renewable energy goals with the construction of a massive USD 10 billion wind farm, set to commence in March 2026. This ambitious project, poised...Read more
  6. Kenya | Kenya Among Top African Countries in AI Investment Inflows - Kenya’s Artificial Intelligence sector received USD 15 million in funding in 2023, a new report shows, pipping Nigeria’s which got USD 2.9 million. The two nations, however, trailed South Africa...Read more
  7. Nigeria | Nigeria Set to Host USD 5 Billion African Energy Bank - Nigeria recently won the bid to host the headquarters of the newly established USD 5 billion African Energy Bank in Abuja Abuja. Nigeria emerged as the preferred host nation amidst stiff competition from...Read more
  8. Tanzania | TIC Targets Ambitious USD 10 Billion in Investment Capital - The Tanzania Investment Centre has set an ambitious target of attracting nearly USD 10 billion in capital investments in 2024. This goal builds on five consecutive years of impressive...Read more


Reports

African Trade and Economic Outlook 2024 | Afreximbank

Courtesy of Afrieximbank

The report provides an in-depth analysis of the current global and African macroeconomic environment, trade patterns, and sovereign debt sustainability dynamics, as the basis for trade and economic projections for 2025. Through the examination of historical trends, existing and emerging risks, as well as opportunities, the report seeks to foster a deeper understanding of the factors driving Africa’s economic performance and trade patterns, to inform policy design.

It also singles out the implementation of the African Continental Free Trade Area and other initiatives as critical to accelerating industrialisation and promoting sustainable growth across the continent.

Click here to download and read the report.


Africa Sustainable Development Report | UNECA

Courtesy of United Nations Economic Commission for Africa

This report utilises unique country perspectives and evaluates the advancements made by African countries in achieving the 2030 Agenda for Sustainable Development and the African Union Agenda 2063.

The report reflects the commitment of the United Nations, the African Union, and the African Development Bank to support the implementation of the two Agendas in Africa, by taking stock of progress and actionable solutions by member states. Together, these agendas present a cohesive vision and platform for a unified multilateral and regional response to the ongoing global crises that have disproportionately affected African economies.

Click here to download and read the report.


State of Africa’s Infrastructure Report | Africa Finance Corporation

Courtesy of Africa Finance Corporation

This report elucidates a stark reality: despite decades of achievement, the pace of Africa’s infrastructure development has not kept up with the growing needs of the population. Most of the core infrastructure is centred around legacy redundant pit-to-port models. Such conclusions must spur Africa to reassess its approach and build infrastructure that will instead catalyse economic and structural transformation.

The continent possesses the resources essential for renewable energy technologies and electrification, both critical to the global shift towards a less carbon-intensive future, as well as a resourceful youth ready to drive this change.

Click here to download and read the report.


Developing Urban Rail Corridors in African Cities | World Bank

Courtesy of the World Bank

This report attempts to relate the policy and good practice literature on urban and suburban passenger rail, much of which originates from high- or middle-income countries to the context of developing cities in Africa. It includes case studies from three African cities- Lagos, Maputo, and Nairobi to identify and provide guidance on key issues for developing effective urban rail services in Sub-Saharan Africa.

All three cities use existing railway right-of-way for part or all of their networks. Improving the established right-of-way and assets provides a faster and less costly option than building new ones if coordination challenges can be overcome.

Click here to download and read the report.


ALN Across The Region

Shaping Kenya’s Green Energy Future

Lake Turkana Wind Power Farm

Over the past seven decades, ALN Kenya’s expertise across the Projects and Infrastructure industry has empowered clients to navigate complex legal landscapes with confidence. Their unwavering commitment to excellence has not only earned them the trust of their clients but also continues to have a lasting impact on the economy.

In the development of this project, ALN Kenya acted for the sponsors of the 300MW Turkana wind power project, the largest power generation project in Kenya, including structuring, negotiating and drafting the equity financing agreements, guarantees by the Government of Kenya and the ADF, advising on the debt financing with nine funders, reviewing and negotiating various engineering, procurement and supply agreements, advising...Read more .


Thank you for being a part of our community, and we hope you find this edition of the Africa Bulletin informative and inspiring.

Zale Tabakman

Founder, Indoor Vertical Farming financed with Green Bonds

3 个月

20% of all GHG emissions are created by moving food from where it's grown to where it's eaten. 15% of the World's Natural Gas is burnt to make fertilizer. 66% of fertilizer never reaches the plants wasting 10% of the world's Natural Gas. Growing food in Indoor Vertical Farms reduces GHGs and provides food security through fresh healthy vegetables free of pesticides. Local Grown Salads is launching 200 Indoor Vertical Farms financed by Green Bonds certified to be aligned with the UN SDGs. Investors in the issuing company are expected to obtain a 10x return. DM me for details.

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