At a time of increasing urgency for climate finance, Africa is emerging as a global leader in carbon markets. In this context, the African Development Bank hosted a high-level dialogue on De-risking and Scaling Carbon Market Investments in Africa, held on the sidelines of the 2025 African Development Bank Group Annual Meetings in Abidjan, Cote d’Ivoire.
The event gathered senior Bank leadership, heads of institutions, policymakers, development financiers, private sector leaders, and civil society to discuss Africa’s growing role and untapped potential in global carbon markets.
Moderated by Prof. Anthony Nyong, Director of Climate Change and Green Growth at the African Development Bank, the dialogue began with opening remarks from Dr. Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the Bank. Dr. Kariuki highlighted the urgency of this moment for Africa’s development trajectory, describing the dialogue as a space “where ideas meet action, principles meet policy, and financing meets Africa’s future.” His remarks set the tone for a bold conversation on how Africa finances development, monetizes its natural capital, and shapes the future of global carbon markets.
Central to the discussion was the Bank’s flagship initiative: the Africa Carbon Support Facility (ACSF). This first-of-its-kind instrument is designed to catalyse the development of high-integrity carbon markets across the continent by providing targeted financial, policy, and technical support.
The Africa Carbon Support Facility aims to unlock billions in climate finance while ensuring benefits for African communities. It aligns with the African Union’s Carbon Market Strategy and is underpinned by five strategic pillars: de-risking supply, stimulating demand, building market infrastructure, strengthening policy ecosystems, and crowding in private capital.
The event also featured remarks from Mr. Ibrahima Cheikh Diong, Executive Director of the Fund for Responding to Loss and Damage, who emphasized the strategic importance of carbon markets in securing long-term resilience and economic opportunity for African countries. In a video message, Mr. Paul Muthaura, CEO of the Africa Carbon Markets Initiative, emphasized the need for coordinated action and investment to ensure Africa becomes a key player in global carbon finance. Their contributions reflected the growing momentum behind Africa’s carbon market agenda and the critical need for strong partnerships, scalable solutions and investment.
"When global emissions are reduced, there is less loss and damage. In Madagascar and elsewhere, disasters give climate change a human face. But there are non-economic losses. Global solidarity is one of the levers; in less than two years, we have launched a fund of $766 million in voluntary contributions. We must promote complementarity; no single institution can do everything.", added Diong.
As the dialogue deepened, a panel discussion, moderated by African Development Bank Vice President Solomon Quaynor, shifted focus to the critical role of financial institutions in unlocking the full potential of carbon markets. Panelists included Mr. Olympus Manthata (Development Bank of Southern Africa), Mr. Derek Chime (ARM-Harith), Dr. Hanan Morsy (UNECA), Mr. Zeph Kivungi (Children’s Investment Fund Foundation), and Mr. Wale Shonibare (AfDB).
Hanan Morsy, Deputy Executive Secretary (Programme) and Chief Economist at the United Nations Economic Commission for Africa stated: “Development partners need to collaborate to ensure the data needed for verifiable, investible and trustworthy carbon credits is available and reliable. Income streams should also trickle down to communities.”
The discussion emphasized a shared belief that financial institutions must take a central role in shaping and leading Africa’s carbon markets. Panelists emphasized the need to embed carbon finance within national development strategies to drive climate resilience and economic transformation. They called for stronger local capital markets, clearer regulatory frameworks, and smarter risk-sharing tools to help de-risk carbon investments and crowd in private capital. The panel also highlighted the importance of ensuring that carbon revenue flows back into communities, supporting equity, transparency, and long-term sustainability. A recurring theme was the need for an ecosystem approach that connects policy, capital, technology, and community impact, moving away from fragmented efforts toward a unified, integrated system. The panelists expressed strong support for the Africa Carbon Support Facility (ACSF), viewing it as a catalytic platform to bring coherence, credibility, and momentum to Africa’s carbon market ambitions. The dialogue made clear that Africa is ready to lead a new era of climate finance—one that is equitable, ambitious, and rooted in Africa’s own priorities and people.
Source: AfDB