Africa’s Extractive Sector Eyes Emissions as New Revenue Stream
Omolabake Fasogbon
Stakeholders in Africa’s extractive industry are positioning carbon markets as a viable new revenue stream and exploring how emissions reduction can be converted into economic value under regulated, high-integrity frameworks.
The stakeholders which recently gathered at the 14th Sustainability in the Extractive Industries (SITEI) Conference, convened virtually by CSR-in-Action Group, examined the continent’s emerging role in the global carbon economy.
They equally explored how extractive companies can monetize emissions reductions through credible carbon accounting, trading and offsetting mechanisms, while delivering measurable social benefits.
Speaking at the conference, Chief Executive of CSR-in-Action and SITEI Convener, Dr Bekeme Olowola said Africa must take greater control of its carbon market architecture, as global demand for high-quality credits grows.
“Africa is no longer a peripheral player in the climate economy. Our natural capital and emerging carbon market ecosystem place the continent at the centre of global attention. The task before us is to define our own standards, shape the rules and ensure that carbon markets work for communities as well as investors,” she said.
Also, Co-Founder of Kike AI, Femi Oye identified that reliable carbon accounting remained paramount to unlocking value in the sector.
“Global demand for carbon credits is projected to reach about 300 million tonnes by 2030, representing a potential annual revenue of up to six billion dollars for Africa. But this opportunity depends entirely on accurate measurement. For extractive industries, carbon accounting is the bedrock of credible credits and a pathway to generate value from environmental responsibility,” she added.
From a policy perspective, Deputy Director at the Central Bank of Nigeria’s Strategy and Innovation Management Department, Esther Essien stressed that regulatory clarity is essential to scaling carbon markets in Nigeria and across the continent.
She expressed Nigeria’s readiness to greenhouse gas emissions by 20 per cent unconditionally and up to 47 per cent with international support, with a net-zero target by 2060.
“Achieving this requires strong carbon integrity standards, effective flaring and methane regulations, and fiscal incentives that support cross-border carbon and energy trade,” she said.
As for Head of Sustainability at Verod Capital Management, Chigozie Ejimogu, he believed that structured frameworks could unlock climate finance and support development goals.
The conference also saw the sealing of partnership between CSR-in-Action, SMEFunds and Carbon Credit Network Africa (CCNA) to develop a technology-driven, community-focused carbon accounting system.
Olowola said the collaboration was designed to ensure that carbon projects deliver both financial returns and tangible community benefits.
