Yemi Osinbajo, the vice president of Nigeria, claimed that by 2030, his country may generate up to 30million carbon credits annually.
For the Nigerian carbon market, 30 million carbon credits, valued at $20 each, would be worth more than $500 million yearly. Fluctuating carbon prices have increased Africa’s financial vulnerability for investments in adaptation and mitigation; because of excess emission allowances and overlaps in energy and climate policy.
Lack of political will, insufficient regulatory monitoring, the complexity of carbon markets, and a lack of ability among potential participants and regulators are some of the major obstacles preventing African nations from participating fully in the carbon market.
The global market for carbon emissions might grow from $300 million in 2030 to over $1 trillion in 2050; if emerging nations like Nigeria continue on emission trajectories that predict a later peak in carbon emissions; which significantly depends on the combination of national climate objectives.