African carbon markets expand through new regulations and climate finance

African carbon markets are entering a phase of regulatory strengthening and increased focus on climate finance. The Carbon Markets Africa Summit (CMAS) 2026 is scheduled for October 13–15 in Kigali, Rwanda, to address how high-integrity markets can attract investment and deliver social and economic benefits. The summit is hosted by Rwanda’s Ministry of Environment, with the United Nations Development Programme (UNDP) and African Development Bank (AfDB) as host organizations.

As countries transition toward implementing Article 6 of the Paris Agreement, the African Union is rolling out its Africa Action Plan on Carbon Markets. Nations such as Ghana are already developing project pipelines and authorization systems. Efforts led by AUDA-NEPAD are emphasizing governance, transparency, and community benefit-sharing to build market confidence.

However, challenges remain regarding policy implementation and technical capacity. In Eswatini, the Eswatini Stock Exchange has warned that significant regulatory and capacity gaps could undermine the country’s ability to participate in the global carbon economy. Experts suggest that for a credible market to emerge, governments must establish enabling environments, conduct national assessments, and implement safeguards to prevent issues like poor-quality credits and unfair revenue distribution.