Capoor said African countries could greatly benefit from the carbon market if the rules of the Kyoto Protocol and other regimes would allow credits from forestry and agriculture sectors. "These are the most important sectors for African economies and poor people's livelihoods," said Capoor. According to the report, Africa's share in the world carbon market was only 5.1%.

"Areas that could bring major opportunities for Africa to participate in the carbon market are either not eligible under the Kyoto Protocol and other carbon reduction regimes, or are difficult to access," he added.

Africa could take advantage of the carbon trade through afforestation, for example. In Kenya, an NGO, the Greenbelt Movement, founded by the 2004 Nobel peace laureate Wangari Maathai, this week signed an agreement under Kyoto Protocol's Clean Development Mechanism to reforest 1,800 hectares of indigenous tree species in the Mount Kenya and Aberdares areas of central Kenya.

The Kenyan electricity generating company, KenGen, has also signed an agreement with the World Bank Community Development Carbon Fund, which will buy emission reductions at the Olkaria II geothermal project estimated as the equivalent of 900,000 metric tons (MT) of carbon dioxide up to 2014. KenGen is expanding the Olkaria project in the Kenyan Rift Valley to generate an additional 35 megawatts of electricity. The Olkaria geothermal project is expected to displace electricity produced by fossil-fuel powered plants in the electricity grid equivalent to 150,000 MT of carbon dioxide per year.

Copyright (c) UN Office for the Coordination of Humanitarian Affairs 2006

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Copyright (c) 2006 UN Office for the Coordination of Humanitarian Affairs