A new report titled 2025 Africa Carbon Market Outlook (ACMO 25) reveals that Africa is on track to emerge as a global leader in both voluntary and compliance carbon markets. Thanks to its vast natural resources and ecosystems, the continent is expected to witness strong growth in carbon credit projects, with the market projected to grow by 15% to 20% annually. The report forecasts up to 30 million green jobs by 2030 and a potential market revenue of $120 billion by 2050, reinforcing Africa’s critical role in the global fight against climate change.
Importantly, the report highlights Africa’s unique opportunity to shape a carbon market rooted in climate justice and social equity. With growing scrutiny over the social and environmental impact of carbon offset projects, African nations are seen as being in a prime position to push for more inclusive, community-centered development. The expansion of carbon markets here isn’t just about emissions—it’s about aligning green growth with real-world improvements for people and the planet.
According to the report’s lead author Dr. Okeh Austine Sadiq, countries like South Africa, Kenya, Ghana, Zimbabwe, and Tanzania are leading by example, implementing carbon taxes, emissions trading systems, and national registries. There’s also a surge of interest from the private sector, with international investors and development banks betting on Africa’s clean energy, agriculture, and forest conservation sectors. These investments could help drive sustainable innovation at scale.
Still, the report warns of major hurdles. Many local, smaller-scale carbon projects face barriers like limited financing, lack of infrastructure, and technical expertise. For Africa to fully realize its leadership potential, the report calls for democratizing access to carbon markets and ensuring regional integration supports community-led initiatives. With the right governance and investments, Africa’s carbon market boom could fuel both climate action and economic transformation.
Source: This day