Stakeholders in Nigeria are calling for regulatory reforms to unlock domestic financing for carbon markets, aiming to accelerate investments in clean cooking, renewable energy, and nature-based projects. The push came during a PRISM Nigeria workshop themed 'Unlocking Domestic Finance for Carbon Markets,' which seeks to integrate carbon-linked revenues into the country's financial system as credible, investable assets. Key proposals include developing carbon credit-linked bonds, incentivizing loans for carbon projects, and integrating carbon credit data into climate risk databases. Nigeria has issued 25 Letters of Authorisation since May, a milestone for monetizing carbon assets, but experts stress that a credible monitoring, reporting, and verification (MRV) system is essential for investor confidence. The workshop identified 15 priority regulatory interventions targeting institutions like the Central Bank of Nigeria and the Securities and Exchange Commission. The goal is to shift from relying on slow international validation to using domestic capital for climate projects, particularly in clean cooking and renewable energy.
