Africa’s carbon markets are on the cusp of transformative growth, with projections showing a potential annual growth rate of 15%–20% and the creation of 30 million jobs by 2030. This is according to the 2025 Africa Carbon Market Outlook (ACMO 25), a new report released by the Africa Carbon Trade Network. The full report will be formally launched online on Wednesday, May 14, at 10 am GMT.
With its vast natural ecosystems and renewable energy potential, Africa is uniquely placed to become a global hub for both voluntary and compliance carbon credit trading. However, the report emphasises that this growth must be underpinned by social and environmental integrity, aligning with the continent’s broader commitment to climate justice.
“African countries are taking ambitious steps to establish robust frameworks for carbon markets,” said Dr Okeh Austine Sadiq, lead author and CEO of Carbon Free Africa Network. “The introduction of carbon taxation, emissions trading systems, and national registries are driving this momentum.”
Countries like South Africa, Kenya, Zimbabwe, Tanzania, and Ghana are already leading efforts to harmonise their policies with global carbon pricing systems. Meanwhile, strong interest from the private sector—especially in renewable energy, sustainable agriculture, and forest conservation—is accelerating investment in offset projects across the continent.
Despite the optimism, the report outlines persistent challenges, including limited financing for small-scale projects and technical barriers in carbon project development. Dr Sadiq warns that without inclusive governance and increased liquidity, the benefits may bypass local communities.
“The democratisation of Africa’s carbon markets is essential,” he added. “With the right investments and support, Africa can drive both climate mitigation and sustainable development through high-integrity carbon offsetting.”
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