Akinwumi Adesina, the outgoing president of the African Development Bank, has raised alarms about foreign firms underpaying for carbon credits sourced from African forests.
Speaking to The Financial Times, Adesina compared the situation to past land grabs, warning that Africa is being exploited in what he calls “carbon grabs,” Yale Environment 360 reported on Monday.
During the U.N. climate summit in Azerbaijan last year, Adesina pointed out the stark price differences for carbon credits.
While carbon can fetch as high as $200 per ton in Europe, it can drop to just $3 per ton in Africa.
This significant disparity, he argued, results in African countries relinquishing large portions of their forests for carbon removal, ultimately losing control over their land.
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A 2022 report from the African Development Bank valued the carbon removal potential of African lands at $66 billion.
The report concluded that Africa is “nature rich and cash poor,” suggesting that a more accurate valuation of the continent’s natural resources could unlock much-needed capital.
In Baku, Adesina called for Africa’s green wealth to be properly measured, emphasizing that the continent should not only be “green rich” but also “cash rich.”
His remarks underscore the need for equitable carbon market practices and a fairer compensation system for Africa’s natural assets.
Adesina, formerly Nigeria’s Minister of Agriculture and Rural Development, has been head of the African Development Bank since 2015.
