OPINION: Somalia’s carbon market awakening - A new chapter in climate leadership

Somalia has signalled a bold shift in its climate ambition with the First National Carbon Markets Conference, held in Mogadishu on 7 October 2025.

Speaking at the opening, Lt. Bashir Mohamed Jama, Minister of Environment & Climate Change (MoECC), reaffirmed the government’s commitment, noting that “carbon markets must serve resilience, sustainable development, and justice for our people.”

The landmark event showcased the nation’s determination to build the systems and partnerships needed to unlock high-integrity climate finance and drive a just green transition. From the outset, the message was clear: Somalia is stepping into global carbon markets on its own terms, with strong governance, community inclusion, and national pride.

Mogadishu, Somalia — A Personal Reflection on a Defining Moment

Standing in Mogadishu on 7 October 2025, surrounded by ministers, technical experts, development partners, and young Somali innovators, I could feel a renewed sense of national ownership and pride.

The National Conference on Unlocking Somalia’s Carbon Market Potential was more than a policy event; it was a declaration that Somalia is ready to lead its own climate future. The discussions, energy, and collaboration reflected a country no longer waiting to be helped, but one shaping its own destiny, with clarity, confidence, and commitment. Somalia is proving that climate ambition and national pride can go hand in hand.

A Testament to National Leadership

Under the leadership of the MoECC, Somalia is advancing institutional foundations for climate finance and policy reform. The Ministry’s coordination and foresight were widely commended, highlighting a transition from donor-driven interventions to Somali-owned solutions.

Through this leadership, Somalia is emerging as a pioneer in Africa’s carbon market, translating national ambition into policy, partnerships, and people-centred outcomes. As one participant noted, “We can feel Somalia taking charge of its environmental destiny.”

From Aid Dependence to Climate Opportunity

For decades, Somalia’s development story has been tied to humanitarian aid. But today, a new narrative is emerging, one that moves from aid to agency.

Anchored in National Transformation Plan I (NTP I, 2025–2029), Somalia is advancing ecosystem restoration, renewable energy, sustainable land use, and blue carbon development as drivers of green growth and resilience. In this context, carbon markets are a powerful tool to support jobs, livelihoods, and local economies.

Turning Ambition into Action

Somalia’s updated Nationally Determined Contribution (NDC 3.0), submitted in June 2025, pledges to reduce emissions by 34% below Business-as-Usual by 2035 — a clear signal of leadership.

Achieving this ambition requires USD 11.5 billion over the decade, with only USD 274 million available domestically. Carbon markets offer a pathway to mobilise results-based finance aligned with Somalia’s priorities, including clean cooking, sustainable rangelands, and blue economy opportunities.

“A well-governed carbon market is not only about reducing emissions, it’s about empowering communities with jobs, resilience, and sustainable growth,”- Lionel Laurens, UNDP Resident Representative in Somalia.

Institutional Readiness and Forward Thinking

Somalia has taken significant first steps in establishing the Designated National Authority (DNA) under Article 6 of the Paris Agreement as the official focal point for carbon governance.

In collaboration with line ministries and institutions such as the Somalia Development and Reconstruction Bank (SDRB), the government has completed a national readiness assessment, identifying priority actions to unlock access to carbon finance. The next phase includes developing a National Carbon Market Strategy, a carbon registry, and digital Monitoring, Reporting and Verification (MRV) systems.

“The First National Carbon Markets Conference marks a historic milestone for Somalia,” said Ayan Harare, Climate Finance Unit Coordinator and Article 6 DNA Representative.

“Carbon markets may be complex, but with the right systems we can guarantee transparency, trust, and integrity, ensuring each carbon credit delivers real benefits for communities and advances our national climate goals.”

Africa’s Shared Opportunity

Africa has enormous potential for high-integrity carbon credits. The Africa Carbon Markets Initiative (ACMI) estimates the continent could generate USD 6 billion annually and create 30 million jobs by 2030, yet it currently generates only around 2% of its potential.

“Sound, predictable and enforced regulation is the cornerstone of a credible carbon market,” said H.E.Steen Sonne Andersen, Ambassador of Denmark to Somalia.

“Fair and transparent revenue-sharing between investors, communities, and government, both federal and state, is essential. Somalia has a unique opportunity to learn from global experiences and get it right from the start.”

Regional Integration and East African Leadership

Somalia’s recent accession to the East African Community (EAC) adds new momentum to regional green integration.

The country’s vast coastline, blue-carbon ecosystems, and renewable energy potential can strengthen East Africa’s climate finance architecture through harmonised standards, cross-border project development, and shared carbon market infrastructure.

A Spirit of Ownership and Optimism

What stood out throughout the forum was the sense of Somali leadership and ownership. The agenda was driven by Somali officials, youth, private sector voices, and experts, a clear sign that Somalia’s carbon vision is being authored at home.

As one youth delegate noted, “This isn’t just about carbon credits — it’s about creating a greener, fairer Somalia.”

A Path Forward

Somalia’s carbon market journey has only begun, but the foundation is strong. With sustained leadership from the Ministry of Environment and Climate Change (MoECC) and inclusive collaboration across all stakeholders, Somalia is building a carbon market that reflects integrity, equity, and national ambition.

“Carbon credits have the potential to be an essential component of child-responsive climate finance and can contribute to adaptation and mitigation efforts that directly benefit children,” said Georges Tabbal, Chief of Water, Sanitation and Hygiene, UNICEF Somalia.

Somalia’s story is no longer one of fragility, it is becoming a story of resilience, reform, and renewed confidence.

Farhiya M. Farah – Independent Consultant specializing in Climate Action; CEO of Earth Story Africa; Advisor to the Somali Climate Action Platform (SCAP).

Ayan Harare – Climate Finance Unit Coordinator, Ministry of Environment & Climate Change (MoECC), and Article 6 Focal Point for Somalia.

Contact: Ayan.harare@moecc.gov.so |ffarah@earthstoryafrica.org