Unveiling the role of impact investing in carbon markets

Securing the financial resources needed for a sustainable future is a critical challenge for East Africa. Carbon markets offer a potential solution, but navigating this complex landscape requires careful consideration. CNBC Africa spoke to Anete Garoza, Co-founder & Chief Climate Officer of 1MTN, on the role of impact investing in unlocking the potential of carbon markets for climate finance and green growth in the region. The launch of the East Africa Carbon Markets Forum signals a new era for the region's approach to climate finance. Different countries in East Africa are at varying stages of preparedness in terms of regulations for carbon markets, but the forum aims to provide a model that can bring these nations together to harness opportunities. Anete expressed excitement for the potential in Uganda, citing ongoing regulatory developments as a positive sign for unlocking opportunities in the country. The event serves as a platform to address market credibility concerns and ensure the integrity of voluntary carbon markets in East Africa. Anete outlined three key pillars to achieve this: robust regulations, innovative climate financing products, and embracing technology for transparency and accountability. These pillars are crucial in building trust and credibility in the carbon markets. The forum brings together stakeholders from around the world to deliberate on these essential aspects of the market. Climate finance opportunities go beyond carbon offsets and present a pressing need for East African nations. Anete highlighted the importance of unlocking climate capital by addressing trust issues, supporting innovation, and promoting transparency in the market. The potential benefits extend to local communities, offering socio-economic advantages alongside carbon sequestration. Green growth in East Africa can be catalyzed by leveraging carbon finance to create new jobs and economic opportunities. Anete stressed the need to involve the region's young population and innovative ideas in shaping a sustainable future. Public-private partnerships are essential to ensure that climate financing benefits those on the ground the most. Nature-based solutions hold significant potential for East African nations in unlocking billions in climate finance. Projects in sustainable tourism, land restoration, and conservation present ample opportunities for growth. Digitalization plays a crucial role in monitoring and verifying these solutions, with technologies like satellite monitoring and AI enhancing efficiency and transparency. The combination of nature-based solutions and digital tools can set the stage for a scalable and trustable carbon market in the region. Looking ahead, the forum aims to facilitate ongoing dialogue among private stakeholders and translate their needs to the public sector. Continuous engagement and collaboration will be key to driving the next steps in advancing climate finance in East Africa. The forum will become an annual event, providing a platform for stakeholders to address pressing issues and shape the future of the region's carbon markets. A market statement will be released following the discussions, outlining the key takeaways and action points for stakeholders to follow through on their commitments. The East Africa Carbon Markets Forum marks a pivotal moment in the region's journey towards sustainable development, with impact investing playing a central role in unlocking the vast potential of carbon markets for climate finance and green growth.