Professors at the University of Nigeria, Nsukka (UNN) have highlighted the significant economic potential of the Voluntary Carbon Market (VCM) for Africa and Nigeria.
Speaking at a stakeholders’ workshop on VCM, Professor Polycarp Emeka Chigbue, Acting Vice Chancellor of UNN, noted that global revenue from the market reached $2 billion in 2021, with projections for Africa exceeding $1.5 trillion by 2050.
“While the voluntary carbon markets (VCM) encompass all transactions of carbon offsets not purchased under a regulated carbon market, compliance carbon markets are marketplaces through which regulated entities obtain offsets under regulatory regimes,” he explained, as cited by Nigerian daily The Sun.
Chigbue emphasized that VCM has been active for over two decades, primarily driven by private-sector initiatives, and is now recognized as a key mechanism for achieving emission reduction targets under Article 6 of the Paris Agreement.
Professor Nnaemeka Chukwuone, Director of the Resource and Environmental Policy Research Centre at UNN, outlined the benefits of VCM for Nigeria.
The first gain is to reduce emissions and help Nigeria achieve its targets in the Nationally Determined Contribution (NDC), in line with the Paris Agreement’s goals.
Chukwuone also highlighted economic opportunities, stating that the carbon market could generate over $2 billion in revenue for Nigeria by 2030 while creating jobs in sectors like forestry, agriculture, and energy.
“If you have offsets in the forestry sector, you will have a lot of money coming from carbon markets and people working in that sector,” he explained.
By leveraging the VCM, Nigeria has the potential to advance its climate goals, generate significant revenue, and create sustainable employment opportunities.
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