At the ongoing COP29 climate conference in Baku, Azerbaijan, environmental advocacy group Greenpeace Africa has strongly criticized the increasing reliance on carbon markets as a solution to the climate crisis. The group argues that these market-based mechanisms, which allow for the trading of carbon credits, are a flawed approach that undermines real climate action and disproportionately harms Africa.
Fred Njehu, the Pan-African Political Strategist for Greenpeace Africa, expressed concerns that carbon markets perpetuate a dangerous form of “carbon colonialism” across the African continent. He highlighted the ongoing exploitation of Africa’s resources, pointing to the displacement of local communities and indigenous peoples by offset projects primarily benefiting corporations from the Global North.
“We’ve witnessed widespread resource exploitation and land grabs across the continent, where local communities and indigenous people are displaced by offset projects that primarily benefit corporations from the Global North,” Njehu said. “This system allows wealthy nations to continue polluting while outsourcing their climate responsibilities to Africa, effectively turning our lands into carbon dumps while failing to address the root causes of the climate crisis.”
Carbon markets, as defined by the United Nations Environment Programme (UNEP), are pricing mechanisms that enable governments and non-state actors to trade greenhouse gas (GHG) emission credits. These credits are purchased to offset emissions, theoretically allowing businesses and nations to meet their climate commitments by investing in projects that reduce emissions elsewhere. While the carbon market trade has surged in recent years, reaching a valuation of $949 billion by the end of 2023 according to the London Stock Exchange Group, Greenpeace Africa believes the focus should shift from market-based solutions to more comprehensive and locally led initiatives.
One of the central criticisms of the carbon market system is that it allows wealthy nations and corporations to maintain their high levels of pollution without making significant changes to their operations. Rather than curbing emissions at their source, these entities can purchase carbon credits, often linked to projects in developing countries like those in Africa. This has led to concerns about the fairness and effectiveness of such a system, as it often involves the exploitation of land and resources in the Global South to meet the climate goals of the Global North.
Greenpeace Africa is advocating for an alternative approach that emphasizes accountability for polluters and prioritizes the needs of African communities. Murtala Touray, Program Director at Greenpeace Africa, argued that rather than relying on carbon markets, the international community should implement a “Climate Damages Tax,” which would ensure that polluting nations pay for the damage they have caused to the climate. Additionally, Greenpeace calls for a stronger focus on adaptation, loss, and damage in the New Quantified Goal on Climate Finance, recognizing that Africa is among the most vulnerable regions to climate change.
“We propose that the New Quantified Goal on Climate Finance includes issues of adaptation, loss and damage that are a priority to the African continent,” Touray said. “Investing in renewable energy, enhancing climate adaptation and resilience, and supporting community-led conservation efforts are more effective and equitable solutions. These approaches not only reduce GHG emissions at the source but also empower local communities to lead in the fight against climate change.”
The criticisms of carbon markets come amid growing concerns about the long-term effectiveness of these mechanisms in addressing the climate crisis. While carbon trading has become a prominent part of the global climate strategy, Greenpeace Africa argues that it often serves as a distraction from the urgent need for systemic changes. Instead of relying on markets that may disproportionately benefit wealthy countries, the organization calls for climate solutions that are more grounded in justice and equity, with an emphasis on the empowerment of local communities.
As COP29 continues, the debate over the future of carbon markets remains central to the discussions on how to address the climate crisis. Greenpeace Africa’s stance highlights the need for climate solutions that prioritize the people and regions most affected by climate change, and for a system that holds the biggest polluters accountable for their actions.
