Background

Cameroon is actively exploring carbon pricing instruments to reduce greenhouse gas (GHG) emissions and mobilize climate action resources. Carbon pricing is an economic approach to reducing emissions, incentivizes investment in climate-friendly solutions, contributing to the achievement of Nationally Determined Contributions (NDCs) and Long-term Low-carbon Development Strategies (LT-LEDS). Despite its potential, there remains a need to build key stakeholders' capacity to understand carbon pricing and make informed decisions. In this light, Cameroon with support from the CIACA initiative is exploring various carbon pricing strategies.

Objective

The workshop provided stakeholders with the knowledge needed to guide decisions on carbon pricing and through a consultative process assess the feasibility of various carbon pricing instruments in the context of Cameroon. The workshop highlighted the role of Article 6 of the Paris Agreement in NDC implementation.

Key Themes

1. Detailed understanding of carbon pricing and its application in Cameroon.
2. Benefits of carbon pricing for mitigation measures and low-carbon development.
3. Revenue utilization through carbon pricing for NDC implementation.
4. Overview of Article 6 of the Paris Agreement and its implications for national climate action.
5. Linkages between carbon pricing, climate finance, MRV, and cooperative action under Article 6.

The way forward

Participants expressed their enthusiasm for carbon pricing initiatives but highlighted several key concerns. These included Cameroon’s current low emission levels (which could limit carbon market opportunities), low carbon credit prices in the region, and challenges with the emissions monitoring methodology. These methodological challenges stem from their sophistication and limited capacity to apply them in sectors like agriculture and forestry, as well as reporting and verification issues.

Participants also raised concerns about potential double-counting of emissions, alongside low technical capacity, and the need for stronger involvement of the banking sector. Ensuring local communities benefit from carbon pricing and carbon market gains was also stressed.

Representatives from the private sector expressed their commitment to collaborating with the government in designing a carbon pricing instrument suitable to Cameroon’s context.

Throughout the workshop, Cameroonian officials demonstrated a robust intention to explore carbon pricing instruments, with the ability to limit emissions growth and increase revenue for climate action.

Based on the workshop outcomes, RCC WAC Africa and the Government of Cameroon, together with national stakeholders, will prepare a feasibility report on carbon pricing instruments for the country.

RCC WAC Africa will continue to assist Cameroon in designing and developing carbon pricing instruments for implementing its NDC.