Tinubu launches carbon market policy, eyes $2.5bn climate investment by 2030

President Bola Ahmed Tinubu has announced the finalization of Nigeria’s Carbon Market Activation Policy, a landmark climate initiative projected to unlock as much as $2.5 billion in high-integrity carbon credits and related investments by 2030.

The policy aims to position Nigeria as a leading hub for climate-smart finance in Africa and a key player in the global green economy.

The announcement was made on Wednesday through a statement signed by Bayo Onanuga, Special Adviser to the President on Information and Strategy.

Tinubu made the remarks during a high-level virtual dialogue on climate and energy transition, co-hosted by UN Secretary-General António Guterres and Brazilian President Luiz Inácio Lula da Silva, in the lead-up to COP30, scheduled to be hosted in Brazil.

According to the statement, “As part of the broader energy reforms architecture, President Tinubu announced the finalisation of the Nigeria Carbon Market Activation Policy in March 2025.

This policy will unlock up to $2.5 billion by 2030 in high-integrity carbon credits and related investments.”

The policy is a critical component of Nigeria’s ongoing energy transition strategy and is backed by the nation’s commitment to updating its Nationally Determined Contributions (NDCs).

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A comprehensive revision of the NDCs is expected by September 2025, aligning Nigeria’s climate actions with the United Nations Framework Convention on Climate Change (UNFCCC).

The high-level climate dialogue brought together leaders from 17 countries, including representatives from the African Union, ASEAN, the Alliance of Small Island States, China, and the European Union. The dialogue served as a strategic platform to galvanize global political will ahead of COP30 and accelerate momentum toward the 2030 climate goals.

Addressing participants from Abuja, President Tinubu stressed the need for aligning climate goals with economic growth. “The global climate emergency demands our collective, courageous, and sustained leadership. For Nigeria, the urgency of this moment is clear: we view climate action not as a cost to development, but as a strategic imperative,” he said.

Tinubu highlighted Nigeria’s Energy Transition Plan (ETP), which outlines a pragmatic pathway to achieve net-zero emissions by 2060. The ETP targets five priority sectors—power, cooking, transportation, oil and gas, and industry—and is expected to require $410 billion in investments to meet its ambitious goals.

To support the plan, the federal government is aligning regulatory frameworks, offering fiscal incentives, and restructuring key institutions to ensure cohesive progress in expanding energy access, reducing emissions, and enhancing national competitiveness.

In his remarks, the president also spotlighted Nigeria’s leadership role in the Mission 300 initiative—a partnership with the World Bank and African Development Bank aimed at electrifying 300 million Africans by 2030.

Additionally, Tinubu revealed plans to establish a Global Climate Change Investment Fund, designed to leverage both public and private capital. The fund will aim to de-risk green infrastructure projects and finance scalable, clean energy solutions across Nigeria and the broader region.

The president reaffirmed Nigeria’s commitment to the National Energy Compact, which outlines clear targets to expand clean energy access, especially in rural areas, and boost the adoption of clean cooking technologies.