Last week, top leaders in Africa came together for three days in Kenya’s capital to discuss climate financing that resulted in a proposed global carbon tax regime. The inaugural African Climate Summit wrapped up with the Nairobi Declaration, a joint document that calls for new global tax frameworks and accountability from major polluters to assist less-affluent countries (Reuters). African leaders intend to use this document during their negotiations at the COP28 Summit in November (BBC). Despite being a region severely impacted by climate change, Africa receives only 3% of global climate finance (Guardian). 

Summit organizers heavily emphasized market-based solutions such as carbon credits, but ultimately the declaration called on global financial institutions and countries “to rally behind the proposal for a global carbon taxation regime including a carbon tax on fossil fuel trade, maritime transport and aviation, that may also be augmented by a global financial transaction tax” (Reuters). These actions have the potential to fund more climate-related projects in Africa and allow for more affordable borrowing rates.

The summit also saw commitments of $23 billion from international governments, development banks, private investors, and philanthropists for green projects, including a significant contribution to a carbon markets initiative. However, African leaders recognized that such investments only scratch the surface of the continent's financial requirements, emphasizing the necessity for more systemic changes (BBC).

Human rights activist Graça Machel hailed the declaration as a significant step forward, asserting that Africa plays a pivotal role in addressing climate change and should not be seen as merely needing assistance, but as offering investment and solutions (BBC).