Africa’s Voluntary Carbon Market (VCM) is projected to evolve into a $1.5 trillion industry by 2050, presenting remarkable economic prospects for the continent. This potential was underscored by experts from the University of Nigeria, Nsukka (UNN), during a stakeholders’ workshop.
Professor Polycarp Emeka Chigbue, Acting Vice Chancellor of UNN, highlighted the impressive growth trajectory of the VCM, with global revenues already reaching $2 billion in 2021. Unlike regulated carbon markets, VCM transactions are driven by private-sector initiatives, enabling businesses to engage in offsetting emissions while supporting global sustainability goals under the Paris Agreement’s Article 6.
Professor Nnaemeka Chukwuone, Director of the Resource and Environmental Policy Research Centre at UNN, explained how the VCM could revolutionise Nigeria’s sustainability efforts. He noted that the market could help the country achieve its Nationally Determined Contribution (NDC) targets while unlocking over $2 billion in revenue by 2030.
Chukwuone emphasised that investments in sectors such as forestry, agriculture, and energy have the potential to create sustainable jobs and attract substantial funding. He highlighted forestry as a particularly lucrative sector, capable of driving significant economic and environmental benefits for Nigeria.
Having been active for over two decades, the VCM has become an essential tool for businesses to participate in climate action. Experts at the workshop stressed that by expanding carbon market initiatives, Africa could establish itself as a global leader in carbon trading, tackling environmental challenges while boosting economic growth.
With countries like Nigeria and South Africa collaborating to expand carbon market frameworks, the VCM holds the promise of sustainable development, reduced emissions, and economic empowerment for local communities.