Opportunities, Progress and Challenges in Carbon Emission Pricing and Markets for East and South African Regions

Abstract In this study, we focus on (i) CO2 emissions among selected Southern and West African countries from 1990–2019 (ii) the relevance of carbon pricing and markets to regional economic growth and climate change mitigation, especially in Sub-Saharan Africa. We then (iii) document progress made in the Southern and Eastern African carbon emission pricing and markets in line with the Paris Agreement 2015, as well as recent achievements regarding long expected replenishment of the Green Climate Fund (GCF); (iv) provide some policy designs and pitfalls against effective carbon pricing system in Southern and Eastern Africa. The study used an in-depth review of relevant literature and secondary sources from the CCAFS NDC sub-sector database 2021. Data were classified and quantified by sub-sector measurement. The results found reasonable progress in the Eastern and Southern African regions to advance Carbon Pricing with magnitudes surpassing the West African regions. South Africa leads in terms of implementing initiatives that will establish carbon pricing. Although not well harnessed and modified, there are considerable opportunities in carbon trading in Africa. However, noted that several initiatives aimed at ensuring green economic growth that can be linked to carbon prices exist in the study region, and they primarily include incentives including: carbon taxes, levies, and taxes, the establishment of trading platforms to sell carbon credits, research funding to deepen knowledge and awareness on carbon trading status among other legislative initiatives. Challenges repressing growth and development of carbon pricing in the regions include poor political will and frameworks on climate change mitigation evidenced in the insufficient number of legislations addressing the issue; inadequate capacity of the policymakers and countries experts to conceptualize and implement carbon pricing policies, and a general lack of financial systems and financial resources to promote climate change mitigation activities. Five relevant recommendations were made based on the findings.