ECOWAS Moves to Build Regional Carbon Market to Unlock Climate Finance

August 14, 2026
By Mintesinot Nigussie

The Economic Community of West African States is moving to establish a regional carbon market platform as governments across the bloc seek new sources of financing for climate action and sustainable development.

A three-day validation workshop in Abuja is bringing together representatives of member states, regional and international institutions, development partners and technical experts to finalise a framework for the proposed platform. The initiative is intended to improve access to climate finance, strengthen national expertise and help West African countries capture more value from carbon markets.

The region faces an estimated climate financing requirement of 294 billion US dollars, according to ECOWAS’ 2022 Regional Strategy for Access to and Mobilisation of Climate Finance. That requirement is expected to rise as member states increase their climate commitments, Christophe Deguenon, ECOWAS director of environment and natural resources, said at the opening of the workshop.

Carbon markets and the implementation of Article 6 of the Paris Agreement could provide additional channels for meeting those financing needs, Deguenon said. West Africa’s natural capital gives the region potential to generate carbon credits, but developing a functioning market will require common standards and safeguards.

ECOWAS has been working since 2024 on a harmonised regional carbon market framework based on transparency, environmental integrity and inclusive governance. The proposed system is also intended to recognise the climate efforts of individual member states while reducing duplication and transaction costs.

The regional approach could help attract investment by pooling technical expertise and strengthening investor confidence, Deguenon said. It is also expected to support countries that have limited institutional capacity to participate effectively in international carbon markets.

Nigeria, which hosted the workshop, has already begun developing its own carbon market infrastructure. Iniobong Abiola-Awe, director of the Department of Climate Change at Nigeria’s Federal Ministry of Environment, said the country has launched a national carbon market framework and is developing a carbon market registry.

She said a regional platform could complement national systems by facilitating peer learning, knowledge-sharing and coordination among member states. The initiative could also support emissions reductions, nature-based solutions, private-sector investment and green jobs, she said.

Technical discussions at the workshop are examining how the proposed framework would align with the ECOWAS Regional Climate Strategy and Article 6 of the Paris Agreement. Participants are also reviewing provisions covering the platform’s scope, technical architecture, regional carbon register and transaction mechanisms.

The meeting is expected to produce a validated framework and a regional roadmap setting out the roles, responsibilities and implementation steps for national and regional institutions.

The initiative forms part of ECOWAS’ climate policy agenda under its Regional Climate Strategy, ECOWAS Vision 2050 and the African Union’s Agenda 2063. Once validated, the framework is expected to provide the basis for the adoption and gradual implementation of a regional carbon market platform across West Africa.

Source: FSX Business News