The Growth of Clean Development Mechanism in Africa
The Clean Development Mechanism Africa is a system which allows emission-reduction projects earn CER credits, especially in developing countries. These CERS, or certified emission reduction credits, are traded and sold to industrialized countries. The said countries use CERs to meet their emission reduction targets. The Clean Development Mechanism is part of the Flexible Mechanisms in the Kyoto Protocol, an international treaty formulated to reduce greenhouse gas emissions effectively.
The mechanism is convenient both for highly industrialized countries as well as developing ones. To meet emission requirements, industrial nations practice emission trading which in turn promotes economic activity in developing countries.
Last 2010, the issue of little CDM activity in Africa was raised at the Africa Carbon Forum. The forum identified main obstacles such as lack of financing, technical skills and experience, monitoring difficulties, and complexity of the CDM rules. After discussion regarding global successes like the Ethiopian Humbo Regeneration Project, optimism was raised, and participants found more motivation to pick up on Clean Development Mechanisms in Africa.
Africa accounts had only been worth 2 percent of the total 2,060-plus Clean Development Mechanism projects globally. In 2007, there were only 42 projects overall. It increased to 75 in 2008, 116 in 2009, and finally, 122 CDM projects in Africa come 2010. The continued rate of growth encourages further development in projects revolving around the mechanism.
Some project developers are even prepared to pay a premium for offset credits originating in Africa, no doubt because they are confident in the long-term growth prospects for CDM on the continent.”
Africa’s slow start in the Clean Development Mechanism area was more of a matter of finding the right approach to match projects with sectors that Africa specialized with, rather than concern on incompatibility.
There are now present movements for the aim of generating funding for African CDM accounts. Economic entities are looking at fund sources such as reward-based, equity-based and lending-based crowd funding.
There are many choices in Clean Development Mechanism projects in Africa, including energy supply, manufacturing, mining, agriculture, forestry, transport and communications. Startups and developed financial entities alike will benefit from the high-level interest of Africa toward CDM-centered investments.