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Would 'Cap and Trade' during 'Downturn' hurt Africa?

Sara Wolcott | Tuesday 3rd March 2009

'Cap and Trade', the Kyoto Protocol's carbon Trading program, is generally proposed as an initiative that will benefit developing countries. However, between Africa's general lack of technical know-how and money and the current economic downturn (which might undermine investment in low-carbon investment in African countries), Uganda and other countries are increasingly concerned that Africa will not benefit from a Cap and Trade agreement. While the global carbon market was worth 116 billion at the end of 2008, and is generally expected to keep growing, most of that money has not been focused in Africa.

Of the over 850 clean development mechanism projects around the world only 23 are in Africa. According to a recent report on allAfrica.com, poor farmers do not have the technical knowledge of how the carbon trade market works nor the financial means to invest in a greener system. Most of the carbon trading projects go towards larger emerging markets, such as Brazil, which have greater technical knowledge, expertise and bargaining powers. It's not the first time that money and resources tend to flow along the routes that they are already going, which does little to balance out the needs of a continent like Africa..

There is general fear about what the financial crisis will do to Africa - from trade, aid, remissions, and investments - and lack thereof and how it will impact countries' ability to meet their Kyoto agreements.

Climate Change does not pay attention to economic downturns. The solutions needed are needed now - and if Cap and Trade doesn't work, other solutions are needed.

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