How Greenplinth is leading Africa’s first carbon exchange in partnership with Lagos

Greenplinth Africa, in partnership with the Lagos State government and other global collaborators recently marked an historic milestone in the journey towards a self-sustaining green economy.

This was on the back of the recent unveiling of Africa’s first Subnational Carbon Exchange —the second globally, after California.

It is expected that the exchange will catalyse green investments, decarbonise fiscal and asset balance sheets, and create a self-sustaining green economy for Nigeria, with Lagos as a pilot point.

“In a momentous leap forward for Africa, I am thrilled to announce the launch of the Lagos Carbon Exchange (LCX) in June 2025—the first of its kind in Africa and only the second globally after California,” Olawale Akinwumi, president/CEO, Greenplinth Africa (the company driving the initiative).

According to him, the Lagos Carbon Exchange (LCX), which is going to be Africa’s first subnational Carbon Exchange, is expected to commence by the second half of the year.

This pioneering platform, housed within the Office of Climate Change & Circular Economy (OCCE) under the Lagos State ministry of budget and economic planning, will establish Lagos as Africa’s hub for compliance carbon markets, attracting billions in climate capital while de-risking investments in low-carbon development.

The LCX will establish a structured, compliance-driven carbon trading framework, and unlock new green financing mechanisms to decarbonize Lagos’s fiscal and infrastructural assets.

“This pioneering initiative, extensively discussed during our February 28, 2025, visit to Mr. Governor, will place Lagos at the epicenter of Africa’s compliance carbon economy,” Akinwumi disclosed.

Closely linked to the carbon exchange is the 80M clean cookstoves project pioneered by Greenplinth Africa. Under the project, 80 million clean cookstoves will be distributed across Nigeria under the Paris Agreement Crediting Mechanism (PACM).

The 80M clean cookstoves project is currently regarded as the largest clean cooking initiative in the world, considered as a bold economic, social, and environmental blueprint that will unlock and open Nigeria up for green financing.

Read also: Greenplinth Africa, CarbonAi to partner on clean cookstove programme in Nigeria

Akinwumi said that Greenplinth Africa will deploy 80 million highly efficient, clean cookstoves across Nigeria to generate a minimum 1.2 billion tonnes of compliance carbon offsets.

Speaking during a recent 3-day implementation retreat for the 80 million clean cookstoves initiative, themed, ‘Clean Cooking Access for Africa – Leaving No One Behind,’ in Lagos; Akinwumi said that the initiative will lead Nigeria’s climate and economic transformation.

“We gather here not just to discuss another climate initiative, but to witness the launch of a historic, game-changing project that will place Nigeria at the forefront of the compliance carbon markets under UNFCCC’s Article 6.4ER framework,” Akinwumi said.

According to him, the initiative is expected to create over 3.5 million green jobs on the back of establishing a forex-denominated, sovereign green endowment fund for sustainable development.

Akinwumi also disclosed that the project will help to improve the health and well-being of Nigerians, especially women and children that would be directly impacted under the 80 million clean cookstoves initiative.

“This project is rooted in Nigeria’s pioneering work under CDM2711, a UNFCCC-registered clean cookstove initiative that demonstrated improved cooking technology’s economic and climate benefits. Today, we scale up that legacy with an ambitious plan to provide free clean cookstoves to vulnerable households across Nigeria, ensuring lasting economic and social transformation,” he said.

To ensure the success of the initiative, Akinwumi disclosed that Greenplinth Africa will collaborate with Olaniwun Ajayi Law Practice and other international partners to develop a robust regulatory and market infrastructure that attracts global Certified Emissions Reduction (Offset) off takers.

He also disclosed that the project has already attracted major international interest to deepen compliance and project deliverables. “Today, we proudly announce an agreement in principle between GPA and McAlpha Inc., Canada, to establish a state-of-the-art, green manufacturing and assembly facility in Lagos, prioritizing local job creation, industrialization, and technology transfer.”

Akinwumi also disclosed plans to expand the initiative in taking Nigeria’s compliance carbon market future beyond Lagos, with 19 states already committed to supporting the project.

“We encourage similar partnerships across finance, infrastructure, carbon finance, and supply chain development to maximize Nigeria’s leadership in the compliance carbon markets.”

According to Akinwumi, the initiative is the first in Nigeria in over 12 years to receive an endorsement from the Nigerian Climate Change Council (NCCC), signifying its importance to the country’s Nationally Determined Contributions (NDCs) under the Paris Agreement.

“To ensure economic and social prosperity, we must shift focus away from unreliable voluntary markets and position compliance carbon trading as Nigeria’s primary climate finance pathway,” Akinwumi said.

Babajide Olusola Sanwo-Olu, Lagos State governor, represented by Bode Agoro, the state’s head of service, said that the initiative was more than an environmental commitment. According to him, it is a strategy for sustainable infrastructure, clean energy projects, and economic resilience.

He stated that 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.

“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,” Sanwo-Olu said.

According to Sanwo-Olu, the compliance carbon market represents the next trillion-dollar economy, and Lagos is poised to lead. “The opportunity before us is immense. However, success demands boldness, collaboration, and unity across government, private sector stakeholders, development institutions, and civil society.”

Speaking directly to the 80 million clean cookstove, Sanwo-Olu disclosed that the distribution will commence in June 2025, and that beneficiaries will participate in a ‘pay-to-cook’ initiative with a monthly stipend of ₦10,000 throughout the project’s duration. Additionally, he disclosed that each beneficiary household will receive free health insurance coverage.

“In alignment with our THEMES++ agenda, clean cookstove distribution will commence in June 2025 in Makoko. This project will address climate-induced socio-economic challenges by improving health outcomes and economic conditions for millions,” Sanwo-Olu stated.

According to the governor, the initiative also includes planting 300 million economic trees across Badagry, Epe, and Ikorodu—creating 80,000 jobs—and establishing a state-of-the-art clean cookstove manufacturing facility that will add 13,000 permanent jobs to Lagos economy.

“Workers employed by Greenplinth Africa will earn a minimum monthly wage of ₦100,000—43 percent above national standards—while every community will benefit from seven ESG-aligned development projects and an annual ₦750 million green development fund distributed across all LGAs and LCDAs,” Sanwo-Olu stated.

Furthermore, the governor commended Titilayo Oshodi of the Office of Climate Change & Circular Economy and the Ministry of Economic Planning & Budget for their leadership in spearheading the transformative initiative.

“I also extend my gratitude to Greenplinth Africa for their innovative approach to climate adaptation that aligns with local needs while advancing Africa’s socio-economic trajectory.”

In their individual goodwill messages, Victor Fodeke, vice president/group managing director, GreenPlinth Africa; Daniel Galadima, director general, Niger State Agency for Green Initiatives/representative of the Niger State Governor; Titi Oshodi, special adviser to the Lagos State Governor on Climate Change and Circular Economy, among other dignitaries, commended the visionaries and expressed the optimism that the initiative would achieve its objectives.