The Untapped Potential of Great Green Wall Voluntary Carbon Market Projects 2024

2.8 Policy environment A lack of coherent and consistent policy on carbon markets within many GGW countries provides a challenge for investor confidence. As highlighted by Abatable’s Voluntary Carbon Market Investment Attractiveness Index,50 a strong national carbon policy framework is a major factor in investment decision-making. Risk mitigation: Good progress has been made over the past year in the development of carbon market regulations in Africa.51 Organizations such as the Africa Carbon Markets Initiative and the West African Alliance are leading work in this space for establishing supportive policy environments in the region through government collaboration via capacity building and technical assistance.52 Countries including Ethiopia, Nigeria and Senegal are working to roll out fully transparent and coherent policy frameworks. While many countries in the GGW do not currently have formal policies, this is down to a lack of capacity rather than an unwillingness to welcome carbon investments. Despite the lack of policy framework in countries such as Mali and Burkina Faso, investment has been possible and bespoke agreements with government have been made. Capacity building and access to finance critical to a just climate transition BOX 7 The United Nations Economic Commission for Africa (UNECA) is working to empower and transform African and GGW countries. Its work includes helping to support policy and capacity development in relation to climate change, climate finance, carbon markets and a just transition. UNECA also supports access to innovative financing mechanisms for adaptation and resilience, with a strong emphasis on community engagement and equitable outcomes that reach women and youth.53Through its work in the region, UNECA has highlighted the Sahel’s unique potential. In fact, despite perceptions to the contrary, economic growth in the Sahel region has been among the highest in Africa, itself the continent with the second highest growth rate in the world.542.7 Political instability The Sahel is one of the most politically challenging regions in the world, with significant instability, including conflicts, insurgencies and violence. This situation, which has left 94 million people in need of humanitarian assistance,49 has been exacerbated by the climate crisis. Instability can disrupt project activities, deter investment and pose safety risks for project staff and local communities. Risk mitigation: The risk of political instability has no immediate solution, but it is important not to let this be an absolute determining factor for investing in these areas through carbon finance. Organizations such as Tree Aid, the International Centre for Research in Agroforestry (ICRAF), SOS Sahel, World Vision and others have demonstrated it is possible to continue successfully operating in these areas, despite the contextual challenges, and deliver for communities on the ground. Maintaining reputable practices and relationships with local actors for project implementation is key to the continuation of operations. For countries, engagement in the carbon market can connect local to global with the sale of credits helping to mitigate some of the socio-economic challenges caused by conflict. Furthermore, improvements in monitoring, reporting and verification (MRV) tools can help to reduce the need for extensive physical data collection, as previously required by existing standards. Maintaining reputable practices and relationships with local actors for project implementation is key to the continuation of operations. The Untapped Potential of Great Green Wall Voluntary Carbon Market Projects 20