As the 79th United Nations General Assembly (UNGA) convenes, climate change and its profound impact on humanity and life on Earth is at the forefront. This year’s theme, “Leaving no one behind”, underscores the global inequalities that define climate vulnerability, especially in developing countries.
The world now looks toward COP29 in Baku, hoping for a more ambitious climate finance goal that reflects the severity of the climate crisis. As the global community deliberates on solutions, one glaring issue stands out: while the Global North remains the primary polluter, the Global South, particularly Africa, carries the burden of offsetting emissions. This imbalance raises questions about the fairness of the carbon credit trading system and whether it truly benefits those most affected by climate change.
Carbon credit trading has become a key tool in the global effort to reduce emissions. In 2023, the carbon market’s value reached $909 billion, a 7% increase from 2022. Africa continues to emerge as a critical player, accounting for 16% of global carbon credits—up from 15% in 2022, according to the World Bank. Carbon credits allow entities in the Global North to offset their emissions by purchasing credits generated through projects—mainly in the Global South—that reduce or absorb emissions. These projects include reforestation, renewable energy initiatives, and sustainable land use.
While this system is intended to mitigate climate impacts, critics argue it enables polluting nations in the Global North to continue their high-emission practices with minimal disruption. As Nobel laureate Joseph Stiglitz notes, “Carbon credits are, in essence, a license to pollute.”
Africa’s diverse ecosystems and renewable energy potential make it an attractive hub for carbon offset projects. However, the implementation of these initiatives often raises concerns about justice and equity. Kenya, for instance, has become a major player in carbon offsetting through reforestation projects like those in the Mau Forest. While these projects have been instrumental in generating carbon credits, indigenous communities have been displaced, sparking debates over land rights and the real benefits for local populations.
In Zimbabwe, the Kariba REDD+ project has garnered significant international attention for its scope—covering over 780,000 hectares and generating more than 20 million carbon credits to date. Yet, less than 10% of the profits from these credits trickle down to local communities, exacerbating inequalities.
Similarly, Rwanda’s efforts in carbon trading—such as the Kigali Cooling Efficiency Program and the Lake Kivu methane capture project—highlight the complexities. These projects, while environmentally beneficial, often reinvest earnings into the energy sector or repay international investors, leaving local communities with limited financial gain.
The growing carbon credit market presents new opportunities for Africa, but it also reveals a fundamental inequity. Countries in the Global North, responsible for the majority of historical carbon emissions, continue to rely heavily on offsets instead of making meaningful reductions at home.
The Carbon Majors Report estimates that just 100 companies, mostly from the Global North, are responsible for 71% of global emissions. By relying on offsets from Africa, the Global North can evade the difficult task of reducing their carbon footprint. Environmentalist George Monbiot criticizes this practice, stating that “The carbon trade is a gigantic con job… It’s a way for the rich to keep polluting while pretending to be green.”
Even more troubling are allegations that powerful financial institutions, including the IMFand World Bank, are pressuring African governments to adopt policies that prioritize land for carbon projects over local ownership. Critics argue that these policies—disguised as climate action—may lead to mass land dispossession.
As Africa plays an increasingly central role in the global carbon market, reforms are needed to ensure that the system works for the continent and its people. Key challenges include:
- Fair Revenue Distribution: Local communities should receive a more equitable share of the financial benefits from carbon offset projects.
- Stronger Accountability: Ensuring that carbon offset projects deliver real, long-term environmental and social benefits is crucial. Transparent mechanisms must be in place to verify the results of carbon sequestration initiatives.
- Increasing the Price of Carbon Credits: African credits are still undervalued on the international market, often priced 30-50% lower than credits from developed countries. Higher prices are essential to incentivize large-scale, impactful projects.
For carbon credit trading to be fair and effective, it must address the inequalities that exist between the Global North and South. The Global North must commit to deeper emission reductions and more equitable financial arrangements for the carbon credits they purchase. Furthermore, local African communities need to be at the heart of carbon project planning, ensuring that their rights and livelihoods are protected.
Climate justice demands global solidarity, with every nation sharing responsibility for protecting the planet. It is time for the Global North to stop using the Global South as a carbon dumping ground and take meaningful action to reduce emissions at home.
