By Wezzie Gausi:
The Ministry of Finance and Economic Affairs has said time has come for the country to invest heavily in the carbon market for economic growth.
This follows the African Development Bank (AfDB) joining the African Carbon Markets Initiative to enhance climate change.
The AfDB announced its official membership in the African Carbon Markets Initiative on May 30.
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This strategic move is set to empower African countries and the private sector in securing additional resources to combat climate challenges.
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Finance Minister Simplex Chithyola Banda outlined Malawi’s unique approach to the carbon market through investments in renewable energy projects, enabling countries and corporations to gain carbon credits.
He said through carbon markets, the country can boost its economy.
“It is high time we started utilising the carbon market where this nation can be able to generate more forex. With the AfDB joining the market, we are certain that this market will be of more benefit, especially in issues of climate change,” Banda said.
AfDB Vice President for Power, Energy, Climate and Green Growth, Kevin Kariuki, highlighted the necessity of financial innovation and the immense potential of raising climate finance through carbon markets.
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He urged African countries to seize opportunities for trading carbon credits under the Paris Agreement’s compliance markets, where prices for emission reductions are significantly higher than in voluntary markets.
“I am pleased to announce that the African Development Bank is now an official member of the African Carbon Markets Initiative. Through this decision, the bank is committed to establishing a mechanism to support carbon market initiatives across our continent,”Kariuki said.
A carbon market is a specialised type of financial market through which carbon credits can be bought and sold. Carbon credits are essentially permits that allow the purchaser to emit a certain amount of carbon dioxide or other greenhouse gas.
