The Africa Carbon Markets Initiative (ACMI) is driving the growth of carbon markets in Africa with a focus on integrity, equity, and transparency. In its first year, ACMI has advanced initiatives across the carbon market value chain by engaging diverse stakeholders and collaborating with governments to create supportive policies. The initiative also works with financial institutions to develop de-risking solutions, unlocking private-sector investments for impactful carbon projects across the continent.

In 2024, carbon markets faced significant credibility challenges, with major concerns about overstated emissions reductions in key project categories like deforestation avoidance (REDD+) and cleaner cookstoves. These issues are particularly impactful in Africa, where such projects represent 90% of recent credit supply. Accusations of greenwashing and fears of land loss for carbon credit initiatives have fueled skepticism about their true climate benefits. Transparency and equity questions have further eroded trust, contributing to a global demand drop of 22% and significant price declines. These challenges are shaping the future of Africa’s carbon markets, emphasizing the need for high-integrity, impactful solutions.