Nigeria Launches Carbon Market Framework Aiming for $3 Billion by 2030

President Bola Tinubu has approved the comprehensive implementation of Nigeria’s carbon market framework, a significant initiative expected to generate at least $3 billion annually by 2030. The announcement was made on Thursday by Dada Olusegun, the Special Assistant to the President on Social Media, through his official X handle. This policy aims to position Nigeria as a key player in global carbon trading.

The carbon market framework is designed to facilitate large-scale transactions in emission allowances across several critical sectors of the economy. By doing so, it not only aims to create new revenue streams but also supports Nigeria’s climate objectives. The government will implement a national carbon registry and mandate emissions reporting for companies, alongside phased compliance mechanisms that align with Nigeria’s climate commitments. These commitments include reducing emissions by 2035 and achieving net-zero emissions by 2060.

The new framework offers incentives to attract investment in the carbon market. Notably, it includes tax exemptions on carbon-credit revenue for up to ten years, along with accelerated capital allowances for low-carbon assets. Additionally, companies engaged in emissions-reduction projects will benefit from research and development deductions. These measures are intended to remove long-standing structural risks that have previously hindered investments in carbon markets.

Nigeria’s commitment to establishing a climate-smart economy is reflected in this policy. By creating a robust carbon market, the government aims to attract green finance and foster sustainable development across the nation. This initiative has the potential to not only enhance economic growth but also significantly contribute to global efforts in combating climate change.

With these developments, Nigeria is taking a proactive approach to environmental sustainability, showcasing its dedication to a cleaner future while simultaneously seeking economic advancement.