.
The Economic Community of West African States (ECOWAS) is advancing plans for a regional carbon market as the bloc seeks to close an estimated $294 billion climate finance gap and attract greater investment into climate-related projects across West Africa.
The initiative comes amid growing concerns over the region’s exposure to climate change, with ECOWAS warning that about 32 million West Africans could face internal displacement as climate impacts intensify.
Regional Carbon Market Takes Shape
ECOWAS Commissioner for Economic Affairs and Agriculture, Dr. Kalilou Sylla, disclosed the plans at a regional workshop in Abuja convened to validate the framework for a West African carbon market platform.
Sylla, represented at the event by ECOWAS Director for Environment and Natural Resources Christophe Deguénon, said the proposed platform is intended to improve West Africa’s participation in international carbon markets.
The framework is expected to create a more coordinated regional approach to carbon trading and help countries attract financing for projects that reduce emissions, protect ecosystems and strengthen climate resilience.
West Africa Has Large Carbon-Credit Potential
According to ECOWAS, the region possesses significant natural resources that could support the generation of high-quality environmental and social carbon credits.
The bloc has more than 350 million hectares of agricultural land, alongside extensive forests, mangroves and degraded landscapes that could be restored through climate-focused investments.
However, West Africa remains underrepresented in international carbon markets because of gaps in regulation, technical expertise, monitoring and certification.
ECOWAS believes a harmonised regional framework could help address these limitations and make projects across member states more attractive to international climate investors.
Climate Finance Needs Estimated at $294bn
ECOWAS said its Regional Strategy for Access to and Mobilisation of Climate Finance, adopted in 2022, estimated the region’s climate financing requirements at approximately $294 billion.
The funding requirement has increased further following the submission of Nationally Determined Contributions (NDCs) 3.0, as member states have raised their climate ambitions and consequently require more resources to implement them.
The regional strategy had already identified the need for a framework to operationalise Article 6 of the Paris Agreement, which provides mechanisms for international cooperation in achieving emissions-reduction targets.
ECOWAS subsequently began developing a harmonised regional carbon-market framework in 2024, aligning the initiative with ECOWAS Vision 2050 and the African Union’s Agenda 2063.
Climate Risks Threaten Millions
The push for additional financing comes against a worsening climate outlook for the region.
ECOWAS said temperatures across West Africa could rise by between 1.5°C and 3°C by 2050, increasing pressure on economies, food systems, livelihoods and ecosystems.
The bloc cited World Bank estimates that nearly 32 million people in West Africa could be forced into internal displacement because of climate-related impacts.
Nigeria’s Minister of Environment, Balarabe Lawal, said West Africa is bearing a disproportionate share of climate-related consequences despite the region’s relatively limited contribution to global emissions.
He stressed that the shared nature of the challenge requires coordinated regional responses.
Nigeria’s Carbon Market Adds Momentum
The ECOWAS initiative comes as individual countries, including Nigeria, accelerate efforts to develop domestic carbon markets.
In January 2026, President Bola Tinubu approved the implementation and operationalisation of Nigeria’s carbon-market framework. The Federal Government expects the market could generate at least $3 billion annually by 2030.
The National Council on Climate Change has said the framework is intended to strengthen Nigeria’s participation in carbon trading and facilitate emissions-allowance transactions across different sectors.
Globally, the market is also expanding. The World Bank reported that revenues from carbon-pricing mechanisms exceeded $107 billion in 2025, demonstrating the growing financial importance of carbon markets.
Turning Climate Assets Into Investment
For ECOWAS, the proposed regional market represents an attempt to turn West Africa’s natural and environmental assets into a larger source of climate finance.
A functioning regional framework could help standardise carbon-market operations, improve the credibility of carbon credits and make it easier for investors to identify and finance projects across national borders.
The initiative could also provide an additional funding channel for renewable energy, conservation, sustainable agriculture, waste management and land-restoration projects.
As climate pressures increase and governments face limited fiscal space, ECOWAS is betting that a deeper regional carbon market can help mobilise private capital while supporting the bloc’s broader climate and development objectives.
