Tuesday, October 21, 2008

Africa should do more to attract Low-carbon Investments

 

Although sub-Sahara Africa is responsible for only 2 percent of global GHG emissions it should not loose out on the sustainable development market. "Only about two percent of the entire CDM projects worldwide are in Africa which is unacceptably low in contrast to 45 percent located in China, 16 percent in India and 13 percent in Chile," head of Nigeria-based International Centre for Energy, Environment and Development Ewah Otu Eleri said recently. To date Africa has just 53 of 3,902 projects worldwide -- just 1.4 percent of the total, and nine times smaller than its share of global carbon dioxide emissions, according to a World Bank study released in Dakar on Wednesday September 3 2008.

Critics have argued that Africa gets a small fraction of the CDM intervention because it offers smaller emissions reduction potential compared to Asia and Latin Americai.e., countries with higher economic growth also attract more investment.

That the CDM benefits the great emerging economies of China and India, among others, more than Africa because of their fast rate of development and stable conditions for investment.

 Africa must grasp funds generated by carbon credit trading to pay for cleaner low carbon energy and help fight climate change that threatens to undo years of economic development, Yvo de Boer, the UN climate chief said on Wednesday. Speaking at the first pan-African carbon-trading forum designed in part to match specialist investors with low-emission projects in Africa, de Boer added "If you look at the potential impacts of climate change those are likely to undo many of the investments that have been made to eradicate poverty, so I think dealing with climate change is an economic imperative,"

 Experts see a market for carbon dioxide allowances and emission reduction credits eventually developing into the world's largest commodities exchange, rivalling oil trading.

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