A new report by African climate think tank Power Shift Africa is sounding the alarm: Carbon markets—long championed as tools to fight climate change—could actually fuel emissions, deepen global inequality, and leave Africa grappling with long-term environmental and social consequences.
Titled Why Carbon Markets Are a Dangerous Distraction for Africa, the policy brief argues that schemes like carbon offsets are allowing major polluters—mostly in the Global North—to continue business as usual, while offloading responsibility for climate solutions onto African nations.
The report estimates that voluntary and uncontrolled carbon market initiatives could trigger an additional 1.5 to 2.5 gigatonnes of emissions every year—more than the entire continent’s current fossil fuel and agricultural emissions combined.
“Carbon markets are nothing more than a smokescreen for polluters,” said Mohamed Adow, Director of Power Shift Africa and the report’s lead author. “They let corporations burn fossil fuels while claiming climate responsibility through offsets. It doesn’t cut emissions—it just shifts the burden onto Africa.”
A Dangerous Distraction
Supported by over 20 African civil society organizations—including AFRODAD, AFSA, Green Faith Africa, and FEMNET—the report dismantles the myth that carbon trading is a fair or effective climate solution for Africa. Instead, it likens carbon credits to “pollution permits”, enabling industries to continue emitting greenhouse gases under the guise of climate action.
Critics argue that carbon markets often exploit African land and resources for offset projects, leading to land grabs, loss of food sovereignty, and displacement of local communities. Meanwhile, genuine climate solutions—like decentralized renewable energy, sustainable agriculture, and community-led adaptation—remain underfunded and overlooked.
A Call for Real Climate Finance
Rather than relying on speculative markets and corporate-led greenwashing, the report calls for a dramatic shift toward public investment, debt relief, climate reparations, and local empowerment. Key recommendations include:
- Establishing national climate funds governed transparently by local stakeholders
- Prioritizing community-led agroecology and food systems
- Expanding access to decentralized renewable energy
- Demanding accountability from polluting nations and corporations
“True climate justice means ending emissions—not trading them,” said Meryne Warrah of GreenFaith Africa. “Africa must not become a carbon sink for industries that refuse to change.”
Voices from the Frontlines
Bridget Mugambe of AFSA warns that carbon trading schemes often allow the richest polluters to continue emitting, while African communities suffer the consequences.
“This is climate injustice in its purest form,” she said. “Africa must reject these false climate solutions and demand direct financing that serves our people, not corporate shareholders.”
Jason Braganza, Executive Director of AFRODAD, echoed the need for a new global financing model:
“Carbon markets misallocate resources and entrench inequality. What Africa needs is climate reparations and debt cancellation—not market tricks that keep us locked in dependency.”
What’s at Stake
As the world hurtles toward climate tipping points, African nations face mounting pressure to join carbon trading platforms like the African Carbon Markets Initiative (ACMI). But this report urges caution, warning that embracing carbon markets could derail the continent’s opportunity to lead with climate-smart, justice-driven solutions.
“The illusion that carbon markets reduce emissions is dangerous,” said Adow. “Africa has the opportunity to leapfrog into a clean, renewable future. We must not waste it by chasing false solutions.”
