By Faridat Salifu
West African countries are looking to carbon markets as a potential new source of funding as the region faces an estimated $294 billion financing requirement for climate action and sustainable development.
The Economic Community of West African States (ECOWAS) is working to establish a regional carbon market platform that could help member states attract investment, strengthen their participation in international carbon trading and generate additional revenue for climate projects.
Christophe Deguenon, ECOWAS director of environment and natural resources, said the region’s climate financing needs are expected to increase as countries strengthen their climate commitments.
He said implementation of Article 6 of the Paris Agreement, which provides frameworks for countries to cooperate in reducing greenhouse gas emissions, could open additional financing opportunities for West African countries.
The proposed regional market is also intended to help countries overcome limited technical and institutional capacity that has prevented some member states from fully participating in international carbon markets.
ECOWAS has been developing a harmonised carbon market framework since 2024, with discussions focusing on common standards, transparency, environmental integrity and governance.
The initiative could allow countries to pool technical expertise and create a more coordinated market, potentially making the region more attractive to investors seeking carbon credits and climate-related projects.
Nigeria, which hosted a three-day validation workshop on the proposed platform in Abuja, is already developing its own carbon market infrastructure.
Iniobong Abiola-Awe, director of the Department of Climate Change at Nigeria’s Federal Ministry of Environment, said Nigeria has launched a national carbon market framework and is developing a carbon market registry.
She said the regional platform could complement national markets by creating opportunities for knowledge-sharing and coordination among ECOWAS member states.
Beyond raising climate finance, the proposed market could support nature-based solutions, emissions-reduction projects, private-sector investment and green job creation across the region.
However, the success of the regional market will depend on whether ECOWAS can establish credible rules that protect environmental integrity while ensuring that countries and communities generating carbon credits receive a fair share of the economic benefits.
Technical experts at the Abuja workshop are reviewing the proposed platform’s scope, technical architecture, regional carbon register and transaction mechanisms.
The meeting is expected to produce a validated framework and roadmap for implementing the regional platform.
