Africa is poised to become a global leader in carbon markets by 2025, driven by robust policy initiatives, substantial investment opportunities, and a commitment to sustainable development.

Nigeria’s Strategic Initiatives:

• Carbon Market Activation Policy (NCMAP): Nigeria has introduced the NCMAP, aiming to unlock a carbon market valued between $736 million and $2.5 billion by 2030. This policy is expected to create up to 2.3 million green jobs and attract both local and international investments.
• Emission Trading Framework: The country has developed its own Emission Trading Framework to facilitate participation in the global carbon market, enhancing transparency and investor confidence.
• Subnational Carbon Exchange: In March 2025, Lagos State, in collaboration with GreenPlinth Africa, launched Africa’s first subnational carbon exchange. This initiative includes the deployment of 80 million clean cookstoves, aiming to generate over 1.2 billion tonnes of carbon offsets and create approximately 3.5 million green jobs.
• Continental Efforts and Potential:
  African Carbon Market Initiative (ACMI): Launched at COP27, ACMI aims to scale up carbon credit production across Africa. Nigeria is a key participant, with projections to generate 30 million carbon credits annually by 2030, potentially supporting over 3 million jobs.
• Investment Needs: The United Nations Development Programme (UNDP) reports that Africa requires approximately $250 billion annually by 2030 to meet its climate objectives. However, current funding meets only 10% of this need, highlighting the importance of carbon markets in bridging the investment gap.

Challenges and Recommendations:

• Credibility and Infrastructure: Stakeholders emphasize the need to enhance the credibility of African carbon credits by strengthening regulatory frameworks, improving project design, and building verification capacity. Addressing these issues is crucial for attracting higher prices and greater investment in the carbon market.
  

With these concerted efforts, Africa, and particularly Nigeria, is well-positioned to lead in the global carbon market, leveraging natural resources and policy frameworks to drive sustainable economic growth and climate resilience.

Source: EnvironNews