(Bloomberg) -- Benin is preparing to tap global carbon markets for the first time to help meet its climate-financing needs.
The West African nation is implementing a “carbon-monetization strategy” backed by 2.5 million carbon credits, mainly from energy and regenerative agriculture projects, according to the finance ministry. The initiative will be managed by the National Carbon Registration Authority.
“Leveraging our experience in international capital markets, such as our 2021 sustainable development goals bond framework, we aim to catalyze private investment to drive climate action,” Finance Minister Romuald Wadagni said in a statement.
Benin needs an additional $10 billion to meet targets enshrined in the 2016 Paris climate accord by 2030, according to the finance ministry. Its carbon credit mechanism is backed by the World Bank, through its SCALE Trust Fund and the Global Green Growth Institute’s Carbon Transaction Facility. The Global Center for Adaptation is supporting Benin with an initial contribution of $1 million to unlock additional adaptation financing.
--With assistance from John Ainger.
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