Lagos launches subnational carbon exchange, clean cookstoves project

The Lagos state government says it has launched Africa’s first subnational carbon exchange and clean cookstoves project.

A carbon exchange is a market where carbon credits are bought and sold to reduce greenhouse gas emissions.

The initiative, in collaboration with GreenPlinth Africa and international partners, aims to attract climate capital, de-risk low-carbon investments, and position Lagos as a leader in clean energy access.

The project was unveiled on Tuesday at the 80-million Paris Agreement crediting mechanism (PACM) compliant clean cookstoves project implementation retreat, themed ‘Clean Cooking Access for Africa: Leaving No One Behind’.

Babajide Sanwo-Olu, Lagos governor, was represented by Bode Agoro, the state’s head of civil service.

The governor said Lagos will distribute six million clean cookstoves at no cost to beneficiaries, through the state’s office of climate change and circular economy (OCCCE).

“At its core lies the world’s largest PACM-compliant Clean Cookstoves Project — a groundbreaking effort that transcends environmental impact to drive economic growth and accelerate social development,” he said.

“By generating 1.2 billion tons of compliance-grade carbon offsets, this project unlocks multi-billion-dollar green revenue streams and creates 35 million green jobs over its lifespan.

“Lagos State will serve as the anchor, distributing 6 million clean cookstoves at no cost to beneficiaries through the office of climate change and circular economy under the ministry of economic planning and budget.”

Sanwo-Olu said the subnational carbon exchange is the second globally after California, adding that it aims to integrate climate action with economic growth.

He described the compliance carbon markets as “the next trillion-dollar economy” that would facilitate green investments.

He urged all stakeholders to demonstrate leadership in reshaping Africa’s climate and economic future ahead of the conference of parties (COP30) in Brazil.

“Today, we also celebrate a historic milestone: Lagos, in partnership with GreenPlinth Africa and global collaborators, unveils Africa’s first subnational carbon exchange,” he said.

“This pioneering platform will establish Lagos as Africa’s hub for compliance carbon markets, attracting billions in climate capital while de-risking investments in low-carbon development.

“For too long, Africa has been on the sidelines of the global carbon economy. That changes now. Lagos will lead by setting a standard for subnational governments across Africa and the global south.

“This exchange will catalyze green investments, decarbonize fiscal and asset balance sheets, and create a self-sustaining green economy.

“This initiative is more than an environmental commitment — it is a strategy for sustainable infrastructure, clean energy projects, and economic resilience.

“By leveraging compliance carbon credits, Lagos will secure cleaner cooking energy for millions while positioning itself as a global hub for ESG investments and green industrial growth.”

The project is part of Lagos’ THEMES++ agenda, with the distribution of clean cookstove to commence in June 2025 in Makoko.

Beneficiaries will participate in a “pay-to-cook” initiative, receiving a monthly stipend of N10,000 throughout the project. Additionally, each household will benefit from free health insurance coverage.