Lagos unveils carbon exchange, leads $80m clean cookstove drive

The governor of Lagos State, Babajide Sanwo-Olu, has reaffirmed the state’s commitment to integrating economic prosperity with global sustainability goals, marking a transformative shift that merges climate action with economic development.

Speaking 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,” he stressed Lagos’s leadership in clean energy access and climate finance innovation.

The initiative, the world’s largest PACM-compliant Clean Cookstoves Project, is set to generate 1.2 billion tons of compliance-grade carbon offsets, unlocking multi-billion-dollar green revenue streams and creating 35 million green jobs.

As the anchor state, Lagos will distribute six million clean cookstoves free of charge, ensuring both environmental impact and economic empowerment.

Beyond clean cooking, Lagos is making history with the launch of Africa’s first subnational Carbon Exchange, the second globally after California.

Developed in partnership with GreenPlinth Africa and international collaborators, the platform will establish Lagos as a hub for compliance carbon markets, attracting billions in climate capital and driving low-carbon investments.

Represented by the Head of Service, Bode Agoro, Sanwo-Olu stated that Africa can no longer afford to be sidelined in the global carbon economy.

Lagos, he said, will set a new standard for subnational governments across Africa and the Global South, pioneering green investments, decarbonising public assets, and fostering a self-sustaining green economy.

He described the initiative not just as an environmental commitment but as a strategic approach to sustainable infrastructure, clean energy projects, and long-term economic resilience.

With Lagos positioning itself at the forefront of the trillion-dollar compliance carbon market, the governor called for bold collaboration between government agencies, private sector stakeholders, development institutions, and civil society.

The project’s implementation phase will kick off in June 2025, with the first batch of clean cookstoves set for distribution in Makoko.

The initiative also includes a “pay-to-cook” programme, providing beneficiaries with a ₦10,000 monthly stipend and
free health insurance coverage.

Furthermore, the project will drive reforestation efforts with the planting of 300 million economic trees across Badagry, Epe, and Ikorodu, creating 80,000 jobs.

A state-of-the-art clean cookstove manufacturing facility will generate an additional 13,000 permanent jobs, with workers earning a minimum monthly wage of ₦100,000—43 percent above the national standard.

Each community will benefit from seven ESG-aligned development projects supported by an annual ₦750 million green development fund distributed across all LGAs and LCDAs.

Sanwo-Olu commended Mrs. Titilayo Oshodi of the Office of Climate Change & Circular Economy and the Ministry of Economic Planning & Budget for their leadership in driving this transformative initiative.

He also applauded GreenPlinth Africa for its forward-thinking approach to climate adaptation, which balances local needs with Africa’s broader socioeconomic growth.

With COP30 approaching, he urged stakeholders to support this initiative, positioning Lagos as a global leader in climate finance and sustainable development.

President & CEO of GreenPlinth Africa, Dr. Olawale Akinwumi, described the launch of the 80M Clean Cookstoves Project as a historic step that will position Nigeria at the forefront of compliance carbon markets under the UNFCCC’s Article 6.4ER framework.

He said that the project is designed to improve the health and well-being of millions, particularly women and
children. Rooted in Nigeria’s pioneering work under CDM2711, the initiative builds upon past successes to provide free clean cookstoves to vulnerable households, fostering long-term economic and social transformation.

Akinwumi highlighted GreenPlinth Africa’s leadership in the project, backed by a team of seasoned professionals in global carbon markets.

He said, “Dr. Victor Fodeke, the Group Managing Director and Vice President, brings extensive experience as Nigeria’s first-ever Designated National Authority under the Clean Development Mechanism.

“His expertise in overseeing climate projects recognized by the UNFCCC adds credibility to the initiative. With a governance team boasting over 200 years of combined experience in carbon finance and sustainability, GreenPlinth Africa ensures strong leadership and expert execution.”

To uphold the highest standards of Measurement, Reporting, and Verification (MRV), GreenPlinth Africa has partnered with Carbon AI, Canada, a global leader in carbon data assurance and metering technologies.

Through the cutting-edge “Spark” metering system, the project will introduce real-time monitoring and accountability frameworks, enhancing investor confidence and regulatory compliance.

Additionally, the initiative has secured key international partnerships, including an agreement in principle with McAlpha Inc., Canada, to establish a state-of-the-art green manufacturing and assembly facility in Lagos.

This development is expected to drive local job creation, industrialisation, and technology transfer, reinforcing Nigeria’s leadership in compliance carbon markets.

Akinwumi revealed that 19 states have already pledged their support for the project beyond Lagos. To ensure transparency and accountability, a robust governance structure has been established.

The Project Advisory Board will be chaired by Lagos State Governor Babajide Sanwo-Olu, with Niger State Governor Mohammed Umar Bago serving as Deputy Chairman.

The Project Compliance Team, led by Mrs. Titilayo Oshodi, Special Adviser on Climate Change & Circular Economy, will oversee implementation and stakeholder engagement.

As Nigeria takes bold steps toward sustainable economic growth and climate resilience, the 80M Clean Cookstoves Project and the Lagos Carbon Exchange mark a pivotal moment in Africa’s green transition.