The African Development Bank (AfDB) has announced the establishment of the Africa Carbon Support Facility in an effort to enhance economic resilience and combat climate change.

The objective of this initiative is to improve carbon markets throughout the continent by assisting governments in the development of carbon trading policies and the reinforcement of the infrastructure for carbon credits.

Carbon credits, which are presently obtained through emission-reducing initiatives such as renewable energy and reforestation, are traded on voluntary markets.

The AfDB aims to incorporate these certificates into African stock exchanges, which could potentially increase their value by tenfold and provide a new revenue stream for African nations.

Africa is subject to severe climate impacts, such as droughts and cyclones, despite its minimal contribution to global climate emissions.

The Carbon Support Facility is a prime example of the innovative solutions that are required to unleash new financial opportunities, as the continent presently receives only 1% of global climate finance.

The AfDB also announced the appointment of Sidi Ould Tah, a former Mauritanian Finance Minister, as its new president.
It is anticipated that his leadership will be instrumental in navigating the bank through this period of uncertainty and in the implementation of initiatives such as the Carbon Support Facility.