Carbon removal efforts to fight climate change while promoting sustainable development are increasingly taking center stage in efforts to mitigate and adapt to climate change.
Attention is turning to Africa’s untapped economic potential as a global carbon sink, driven by its abundant natural resources, from volcanic rocks to regenerative farms.
While the continent currently accounts for 12% of the world’s issued carbon credits, it is only utilizing 2% of its maximum annual capacity. This immense potential is positioning Africa as an emerging leader in carbon dioxide removal (CDR) technologies.
Why CDR?
The Intergovernmental Panel on Climate Change indicates that, to limit global warming to 1.5°C, global CO₂ emissions must reach net zero by the early 2050s. In this regard, CDR is essential for offsetting emissions from sectors that are challenging to decarbonize, such as agriculture and long-distance transport.
CDR methods are either Nature-based Solutions or Technology-based solutions. Nature-based solutions leverage natural processes to sequester Carbon dioxide, such as afforestation and reafforestation, soil carbon sequestration through regenerative agriculture, and restoration of wetlands and mangroves.
Nature-based solutions are cost-effective and provide co-benefits like biodiversity conservation. Technology-based solutions involve Direct Air Capture (DAC) (machines that extract carbon dioxide directly from the air), and Bioenergy with Carbon Capture and Storage.
According to the IPCC, while reducing emissions is crucial, CDR is necessary to offset residual emissions from hard-to-decarbonize sectors and achieve net-negative emissions to stabilize the climate. Consequently, there is a need for scalable, permanent solutions beyond emissions cuts.
Opportunity for Africa
Africa’s global competitive advantage is its pathway to prosperity. These are its demographics, arable land, freshwater, and access to rare earth minerals, and it also has 60% of the world’s solar resources, yet it only has 1% generation capacity.
Globally, companies are under pressure to translate net-zero targets into tangible action, and the demand for carbon credits is projected to reach $50 billion by 2030, while currently, the demand exceeds the supply.
For instance, recent regulatory tailwinds, including CORSIA deadlines, are bolstering demand for carbon credits.
Corsia requires airlines to monitor and report their emissions, allowing them to purchase emission reduction units if they exceed a set baseline. For the pilot phase (2021–2023), the deadline for compliance was January 31, 2025. For phase I (2024–2026), the deadline is January 31, 2028. To meet these deadlines, airlines should plan credit purchases well ahead to avoid any risks.
Africa can profit from global decarbonization by shifting energy-intensive solutions to Africa. According to Caitlin Wale, director at Client Earth and a carbon removal venture investor, Sub-Saharan Africa has the resources to facilitate CDR.
There is a growing demand for tech- and nature-based carbon removal solutions. While nature-based solutions like reforestation projects are cheaper, they often lack the data required for credible tracking and scalability. On the other hand, tech-based solutions, such as Direct Air Capture (DAC), are still nascent and expensive to scale but hold immense potential.
African startups are harnessing local resources to develop cost-effective direct air capture (DAC) technologies, advancing global carbon removal efforts. Octavia Carbon, Africa’s first DAC company, operates a facility in Naivasha, Kenya, removing 1,000 tons of CO₂ annually. In partnership with Cella Mineral Storage, the captured CO₂ is mineralized and stored in volcanic rocks. Powered by Kenya’s geothermal energy, the project aims to produce certified carbon credits under the Puro.earth standard.
“Our mission is to position Kenya as a climate change vanguard by making Octavia Carbon a leading force in reversing climate change and ending the fossil fuel age,” says Martin Freimüller, CEO of Octavia Carbon.
CDR projects offer new revenue streams for farmers and local communities through carbon credits, promoting sustainable agriculture and land use. However, addressing key issues surrounding carbon offsets, such as regulations and market fragmentation, is essential to instill confidence among investors and founders, thus driving innovation in carbon technologies.
“Cooperative aggregation approach and buyer diligence are critical to see the market grow,” says Caitlin.
Ebby Mwihaki, an associate at Lateral Frontiers, a venture capital company investing in Africa’s Climate Tech, emphasizes the importance of understanding the sector and context of investment.
“Despite geopolitics affecting venture capital in terms of policy, conversation will not move away from climate and CDR but will shift,” she adds, highlighting the United States’ withdrawal from the Paris Agreement.
However, experts are warning that overreliance on CDR, particularly land-based methods like afforestation, could divert attention from the urgent need to reduce fossil fuel.
Dr. Kate Dooley of the University of Melbourne emphasizes that, “Carbon dioxide removal into land and forests cannot legitimately be used to offset continuing fossil fuel emissions.”
Moreover, a working paper from Stanford University highlights concerns that some organizations may exaggerate their carbon mitigation achievements, thereby engaging in a form of greenwashing that undermines genuine sustainability efforts.
As the market is still developing in the region, Africa has the opportunity to leverage local resources and develop cost-competitive CDR technologies, contributing to the global carbon removal effort.
