The United Nations Development Programme (UNDP) and analytics company Sylvera have launched a new carbon data platform aimed at offering African nations access to Article 6 carbon credits.
The Carbon Data Access Partnership (CaDAP) initiative aims to provide African governments with comprehensive carbon credit data, enabling them to participate more effectively in carbon markets, particularly under Article 6 of the Paris Agreement, and attract much needed carbon finance.
Agreed at COP29, Article 6 aims to provide trusted and transparent carbon markets for countries, allowing them to trade credits to meet their climate targets. It also positions carbon markets as a vital investment channel for developing countries.
Africa, which received only $52.1bn or 3.3% of global climate finance flows in 2021-2022, faces a significant funding gap, with flows needing to increase fourfold annually until 2030 to meet 2030 targets, according to Climate Policy Initiative.
Although Africa holds immense potential for high-integrity carbon projects, the continent’s carbon credits have often been undervalued due to limited access to reliable data and standardised rating mechanisms, the press release notes.
Other key challenges include inconsistent or insufficient verification of carbon offset projects and the risk of greenwashing, where offsets fail to deliver real or additional emissions reductions.
While Article 6 is a step in the right direction of bolstering governance structures and reducing risk for carbon credit investors in the global south, there is no silver bullet to these problems, even if Article 6 projects enjoy UN accreditation, Alex Godfrey, investment director of Natural Capital at Octopus Investments, told Net Zero Investor.
By giving participating countries’ governments access to insights on over 21,000 projects, the partnership will enable African government officials to have full sight of existing and planned carbon projects within their territories. In addition to helping countries engage more effectively with carbon markets, it is hoped the data will inform policymaking decisions, contribute to host country’s readiness, and foster more favourable regulatory environments that are crucial for attracting investment.
Allister Furey, CEO of Sylvera, said: “Africa has a critical role to play in the journey to net zero with the continent at the forefront of driving meaningful climate action.”
Ahunna Eziakonwa, assistant UN secretary general and director of UNDP Regional Bureau for Africa noted: “UNDP is committed to the utilisation of credible, up to date and comprehensive data, critical for informed policy and investment decisions to maximise benefits from carbon markets for African countries.”
Could the voluntary and compliance carbon credit markets merge?
After the SBTi row: do carbon credits have a future in institutional portfolios?
