African countries have been challenged to prioritise transparency in commitments and agreements that are tied to carbon offset projects and climate related issues to ensure Africa’s vast resources, both natural and economic, are harnessed in a way that achieves tax justice and aligns with global climate goals.
This was the clarion call from the Sustainable Climate Finance and Taxation in Africa Civil Society Learning Event in Nairobi, Kenya that was organised by TJNA.
The meeting brought together over 40 civil society actors across Africa focused on tax justice, climate justice, and natural resource justice and sought to create a platform for collective advocacy for sustainable climate finance reform in the region. The meeting also sought to define carbon fraud and how it undermines the credibility of the continent’s participation in global climate financing efforts.
Speaking during the opening session, TJNA Executive Director Chenai Mukumba urged governments to adopt rigorous qualitative and quantitative reviews of carbon offset projects to ensure that they not only meet environmental goals but are also free from corruption and manipulation.
“African countries must work together to fully maximise the potential of the resources within their borders. With the urgent need to tackle the threats posed climate crisis to the continent, governments need to step up to ensure transparency and accountability in carbon offset projects and mineral extraction,” Ms Mukumba added.
During the meeting, experts and participants made a clear call for action on several fronts: climate finance, critical mineral management, and international trade agreements. It was agreed that the challenge of tackling climate change in the region will require a multi-faceted approach. Climate finance, critical mineral management, and international trade agreements are deeply interconnected and must be coordinated to create a just and sustainable future for the continent.
As the world accelerates towards renewable energy adoption, ensuring equitable access to climate finance, managing critical resources sustainably, and fostering international cooperation in trade will be key to achieving global climate goals.
In his remarks, Project Manager at the Ministry of Environment, Climate, and Forestry, Fredrick Ouma called for African governments to integrate carbon taxes and environmental tax structures in alignment with the Paris Agreement, to ensure that climate policies are not only aspirational but actionable.
“It is importance to align Africa’s mineral policies with the Paris Agreement, specifically Article 2.1c, which calls for efforts to “enhance support for developing countries” in managing natural resources sustainably,” Mr Ouma said.
“To maximize the benefits from Africa’s mineral wealth, there is a need for value addition within the continent and progressive taxation structures that will ensure the revenues from these resources are used to fuel sustainable development.,” Mr Ouma added.
In her remarks, TJNA Policy Officer, Everlyn Muendo noted that the European Union’s Carbon Border Adjustment Mechanism (CBAM) is another major challenge that could lead to a staggering 25% revenue loss for Africa’s economy. She added that although Africa is rich in critical minerals crucial for the global shift to renewable energy, the region is grappling with significant illicit financial flows (IFFs), with nearly 40% of these flows connected to mineral extraction.
“CBAM contradicts the principle of Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC) outlined in the Paris Agreement. The potential backflow of climate finance from Africa to the EU, along with its impact on investment, employment, and competitiveness, means that this policy is set to disproportionately harm African countries. Therefore, African governments must halt the unprecedented economic reforms to comply with CBAM and instead demand a critical reassessment of the policy’s impact on their economies,” Ms Muendo said.
Participants also called for a renewed focus on continental trade adding that by aligning with the Lagos Plan of Action and the African Continental Free Trade Area (AfCFTA), Africa can create stronger internal markets, reduce dependency on external trade policies, and drive inclusive economic growth. Therefore, governments must take swift action to implement transparent policies, reform critical mineral industries, and critically assess international trade agreements that threaten the continent’s prosperity.