Lagos launches carbon credit project for 80 million households in Nigeria

The Lagos State government has launched a programme to deploy 80 million improved cookstoves, generating up to 1.2 billion tonnes of tradable carbon credits.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The Lagos State government announced on June 2 the launch of Africa’s largest clean cookstove initiative under a carbon credit mechanism aligned with the Paris Agreement. The initiative targets the distribution of 80 million improved cookstoves nationwide and could generate up to 1.2 billion tonnes of emission credits, usable in both domestic and international carbon markets.

Initial rollout of 6 million units

Titilayo Oshodi, Special Adviser to the Lagos State Governor, stated during the launch event that the first phase of the project would begin this month with the distribution of six million cookstoves. The project falls under Article 6.4 of the Paris Agreement, which allows entities to reduce emissions in one country and transfer the resulting credits to another country through regulated offset mechanisms.

This system enables governments or companies from industrialised countries to purchase these credits to offset a portion of their own emissions while financing projects in low-income countries. According to data from S&P Global Commodity Insights, credits generated from household devices, including improved cookstoves, are currently priced at just $3 per tonne of CO₂ equivalent.

A pressured market despite growing demand

Improved cookstoves aim to replace traditional cooking methods involving charcoal, firewood or agricultural waste, which are widespread in sub-Saharan Africa. These practices not only generate high emissions but also contribute to numerous premature deaths due to indoor pollution. The distributed equipment uses cleaner fuels and offers improved energy efficiency.

However, similar programmes have recently faced criticism for overestimating their benefits, leading to excessive issuance of credits. This issue has contributed to a drop in the value of credits linked to such devices. Market observers note that the reliability of avoided emissions data remains a key issue for the mechanism’s credibility.

A closely watched initiative by the markets

This programme represents a large-scale first attempt by a Nigerian state to actively engage in global carbon markets through certified reduction mechanisms. The integration of this initiative into Nigeria’s domestic carbon market, still in its formative stages, could serve as a model for other African governments.

According to announced projections, if the project meets its targets, Nigeria could become one of the world’s leading suppliers of domestic and transferable carbon credits, depending on the evolution of verification methodologies and international market demand.

Japan and Malaysia have signed a preliminary cooperation protocol aiming to establish a regulatory foundation for cross-border carbon dioxide transport as part of future carbon capture and storage projects.
Green Plains has commissioned a carbon capture system in York, Nebraska, marking the first step in an industrial programme integrating CO₂ geological storage across multiple sites.
The price of nature-based carbon credits dropped to $13.30/mtCO2e in October as a 94% surge in September issuances far outpaced corporate demand.
Driven by the energy, heavy industry and power generation sectors, the global carbon capture and storage market could reach $6.6bn by 2034, supported by an annual growth rate of 5.8%.
Article 6 converts carbon credits into a compliance asset, driven by sovereign purchases, domestic markets, and sectoral schemes, with annual demand projected above 700 Mt and supply constrained by timelines, levies, and CA requirements.
The GOCO2 project enters public consultation with six industrial players united around a 375 km network aiming to capture, transport and export 2.2 million tonnes of CO2 per year starting in 2031.
TotalEnergies reduced its stake in the Bifrost CO2 storage project in Denmark, bringing in CarbonVault as an industrial partner and future client of the offshore site located in the North Sea.
The United Kingdom is launching the construction of two industrial carbon capture projects, backed by £9.4bn ($11.47bn) in public funding, with 500 skilled jobs created in the north of the country.
Frontier Infrastructure, in partnership with Gevo and Verity, rolls out an integrated solution combining rail transport, permanent sequestration, and digital CO₂ tracking, targeting over 200 ethanol production sites in North America.
geoLOGIC and Carbon Management Canada launch a free online technical certificate to support industrial sectors involved in carbon capture and storage technologies.
AtmosClear has chosen ExxonMobil to handle the transport and storage of 680,000 tonnes of CO₂ per year from its future biomass energy site at the Port of Baton Rouge, United States.
The Dutch start-up secures €6.8mn to industrialise a DAC electrolyser coupled with hydrogen, targeting sub-$100 per tonne capture and a €1.8mn European grant.
Japan Petroleum Exploration is preparing two offshore exploratory drillings near Hokkaidō to assess the feasibility of CO₂ storage as part of the Tomakomai CCS project.
The Singaporean government has signed a contract to purchase 2.17 million mtCO2e of carbon credits from REDD+, reforestation and grassland restoration projects, with deliveries scheduled between 2026 and 2030.
The Canadian government is funding three companies specialising in CO2 capture and utilisation, as part of a strategy to develop local technologies with high industrial value.
European carbon allowance prices reached a six-month high, driven by industrial compliance buying ahead of the deadline and rising natural gas costs.
Zefiro Methane Corp. completed the delivery of carbon credits to EDF Trading, validating a pre-sale agreement and marking its first revenues from the voluntary carbon market.
Hanwha Power Systems has signed a contract to supply mechanical vapour recompression compressors for a European combined-cycle power plant integrating carbon capture and storage.
A prudent limit of 1,460 GtCO2 for geologic storage reshapes the split between industrial abatement and net removals, with oil-scale injection needs and an onshore/offshore distribution that will define logistics, costs and liabilities.
Frontier Infrastructure Holdings drilled a 5,618-metre well in Wyoming, setting a national record and strengthening the Sweetwater Carbon Storage Hub’s potential for industrial carbon dioxide storage.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.