Carbon markets
Carbon markets

Japan donates N$16 million to Namibian carbon project

Ellanie Smit
Namibia is taking the lead among sub-Saharan countries to pilot and support the development of a region-wide framework for carbon market mechanisms.

Environment minister Pohamba Shifeta has launched the promotion of a carbon market project in Namibia which the government of Japan has funded with N$16 million.

The project is for the enhanced implementation of the Nationally Determined Contributions (NDCs) towards net-zero emissions and climate resilient development in response to the climate emergency.

It is being implement through the United Nations Development Programme (UNDP) as the implementing entity and the ministry as executing partner.

Robust targets

Shifeta said the Paris climate agreement under the United Nations Framework Convention on Climate Change requires parties to formulate robust and ambitious targets to fight climate change.

"One of the vehicles to achieve such targets is the use of market and non-market-based approaches to trade carbon emissions globally."

Shifeta said that over the past year, carbon markets have witnessed an increase in the volume of carbon credits transacted.

"Carbon markets can support climate change mitigation efforts by creating an economic incentive for reducing emissions from various sectors in a cost-effective manner."

Taking the lead

He said that this enables countries to raise their climate ambitions, while also supporting a transition towards a low-carbon and climate-resilient global economy.

A recent study has indicated that recognising the importance of carbon markets could save US$250 billion per year and result in 50% more emission reductions if countries work together rather than with individual actions.

Shifeta added that Namibia is implementing its updated NDC, which resolutely commits the country to the Paris agreement, and taking practical and ambitious economy-wide actions to reduce emissions.

He said that this project is designed to establish the enabling environment for Namibia to pursue carbon market-based options to allow for more stakeholders to participate in addressing climate change.

"This will place Namibia in the lead among the sub-Saharan African countries to pilot and support the development of region-wide frameworks for carbon market mechanisms."

Continued support

The UNDP resident representative, Alka Bhatia, said that by entering carbon markets, Namibia can advance its socio-economic development while transitioning to a low-carbon economy in a cost-effective way that puts a price on carbon, allows for carbon trading, and stimulates new market opportunities for the private sector.

Hisao Nishimaki, the Ambassador of Japan to Namibia, indicated that Japan would like to continue providing technical assistance to countries, including Namibia, to further develop their carbon markets, including achieving net-zero targets.

He also announced that the government of Japan will donate US$200 million to the Middle East and African countries, inclusive of Namibia, to address the food price hike as a result of the Russia-Ukraine war.

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Namibian Sun 2022-12-04

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