AfCFTA can contribute to reduction in greenhouse emissions
Experts have forecasted that establishing carbon markets in African countries through the African Continental Free Trade Area (AfCFTA) may have the effect of significantly reducing Greenhouse emissions.
The full implementation of the AfCFTA in the coming years is expected to facilitate trade and provide more trading options on the continent without proving detrimental to climate change, the Economic Commission for Africa (ECA) reported.
Industry expert while presenting their respective research paper on the area at the African Economic Conference (AEC), 2023 in Ethiopia agreed that the full and strategic implementation of AfCTA together with its operational units could be a catalyst for carbon markets.
“Although there is a trade-off between reducing GHG emissions and spurring economic benefits, establishing an African carbon market is particularly effective at reducing GHG emissions, while largely preserving foreseen economic benefits from AfCFTA,” Simon Mavel, an economist at the ECA said.
Trade & Industrial Policy Strategies (TIPS) economist, Seutame Maimele also said, “The African Union within the AfCFTA could lead to the creation of a regional carbon market which can be utilized for selling carbon credits. This market can also be used to retain the funds collected by the EU from the continent.”
