Climate Finance Readiness and Carbon Markets in Congo Basin Member States

Abstract

In 2020, the presidents of six Central African countries took part in a webinar called "Towards COP 26: Using Carbon Finance to Accelerate Development in Congo Basin Member States," which brought together nearly 200 experts, practitioners, and stakeholders. The author of this essay took part in the webinar and has been invited by Central African government representatives to contribute. This essay examines, in particular, 'climate finance readiness' and the potential of 'carbon markets' in the region today. The essay is accompanied by a report written by the author, which presents the underlying analysis of the topics at the level of each of the six Central African states. For each country, the report provides data and context regarding the socioeconomic and environmental trends and direction of their National Determined Contributions (NDCs); legitimacy of the state; readiness of the local private sector; capacity of local financial institutions; direct role of the state in climate finance; and greenhouse gas emission profiles as suggested by the data. 

This essay provides a synthesis of these reports, conducted for each country at independent and stand-alone levels, to give a view of the region. First, the essay describes climate finance readiness and why it matters. The second half of the essay examines the state, potential, and prospects for Congo Basin representatives to access the power of 'carbon markets' in their transition. It is this potential that the six Congo Basin Member States are eager to rise to – trying to create a favourable environment for ENGIE because it is the most significant 'carbon sink' in the world.