KEY POINTS
- Proper valuation of Africa’s natural resources can drive economic growth.
- Fair carbon pricing will help Africa benefit from its green wealth.
- Green GDP promotes sustainable policies and global investments.
African Development Bank (AfDB) President Akinwumi Adesina has called on African countries to properly value their green resources to boost their economies and attract global investments.
Speaking at COP29, a United Nations climate event in Baku, Azerbaijan, Adesina stressed the need to include Africa’s environmental assets in its GDP to unlock their true financial potential.
“It’s time for Africa’s green resources to be properly priced,” Adesina said. “This can help turn our massive green wealth into real economic gains by including it in what I call ‘green GDP.’”
Africa’s natural wealth holds untapped value
Africa is home to a vast amount of natural resources crucial for the global green energy transition. These include 50 percent of the world’s cobalt reserves, 40 percent of manganese reserves, and over 80 percent of platinum reserves. These materials are key for making batteries, electric vehicles, and renewable energy technologies.
Adesina explained that properly valuing these assets could boost Africa’s economic output. For example, the AfDB estimates that Africa’s GDP in 2022 could have increased by $66.1 billion if carbon sequestration alone had been included.
“By recognizing the real value of our carbon sinks and environmental resources, African countries can generate significant revenue to address debt and fund sustainable development,” he said.
Fixing carbon pricing for fair gains
According to a report by Newsday Zimbabwe, Adesina also highlighted unfair carbon pricing as a major challenge. While carbon credits sell for as much as $200 per ton in Europe due to strict regulations, African countries often sell theirs for just $3 to $10 per ton.
“This price gap is a big issue,” Adesina said. “Selling carbon credits at such low prices provides quick cash but undervalues Africa’s long-term potential.”
He urged African nations to develop stronger carbon markets and push for fairer prices that reflect the true value of their environmental resources.
Green GDP: A path to prosperity
Adesina believes adopting a “green GDP” approach will help Africa secure investments, create better policies, and promote sustainable industries. With the global value of electric vehicle and battery systems expected to grow from $7.5 trillion to $59 trillion, Africa’s mineral wealth positions it as a key player in the future of green energy.
By properly pricing its resources, Africa can ensure a more sustainable and prosperous future while reducing its reliance on undervalued carbon markets. “This is a chance for Africa to take control of its green wealth and drive real economic progress,” Adesina said.
