In the global fight against climate change, carbon markets stand as one of the most powerful financial mechanisms to drive emissions reductions and promote sustainable innovation. Yet, despite the continent’s vast resources, talent, and untapped potential, Africa has largely been left out of this $1.4 trillion market opportunity - a gap that bold innovators are now racing to fill.

As a venture builder focused on Sub-Saharan Africa, Kinjani is at the forefront of this effort. By supporting African-led science-driven regenerative solutions, we aim to transform the region into a hub for high-quality carbon removal and biodiversity credits with co-benefits such as enhanced livelihoods, water access, and biodiversity restoration. Recent insights from experts Julio Friedmann, Robert Höglund, and Siddarth Shrikanth shed light on the incredible market opportunities and practical steps for seizing them.

The Carbon Market Opportunity

"Carbon markets are evolving rapidly, and the demand for high-quality, durable carbon removal credits is surging," said Julio Friedmann, Chief Scientist at Carbon Direct, during Kinjani’s recent (Ad)venture Builder Programme. "Africa is uniquely positioned to supply these credits, given its rich natural resources and entrepreneurial talent."

Despite this promise, Africa’s participation in global carbon markets remains minimal. However, the demand for credits that deliver measurable and additional climate benefits is growing, particularly for solutions combining carbon sequestration with co-benefits like biodiversity enhancement and improved community livelihoods.

Key Market Drivers:

1. Nature-Based Solutions: Africa’s expansive forests, wetlands, and mangroves are ripe for restoration projects that not only sequester carbon but also protect critical ecosystems. "Projects like reforestation or mangrove restoration have immense potential to meet the growing demand for nature-positive carbon credits," Friedmann emphasised.

2. Engineered Removals: Emerging technologies such as biochar production, direct air capture (DAC), and enhanced rock weathering are gaining traction. At Kinjani, for example, we support ventures like Proxima Green, which combines biochar with minerals to create climate-smart fertilisers.

Overcoming Challenges

"Access to capital remains one of the biggest barriers for African founders," Friedmann noted. "But with a bulletproof business plan and strong partnerships, the market opportunity is within reach."

Practical steps for founders include:

• Securing Financing: Develop detailed plans with robust revenue projections and engage with buyers early to establish offtake agreements.

• Navigating Regulations: Africa’s governments must actively engage with frameworks like the International Civil Aviation Organisation’s (ICAO) CORSIA scheme, ensuring local projects are eligible for compliance markets.

• Leveraging Resources: Projects must evaluate the availability of land, feedstock, and energy early, prioritising ventures that can operate sustainably.

The Biodiversity Connection

“We’re in the midst of a sixth mass extinction, and biodiversity markets are one of the most promising tools to reverse the trend,” said Siddarth Shrikanth, a global leader in biodiversity and nature-based solutions. “African founders have a unique opportunity to pioneer scalable, high-impact projects in this nascent space.”

Biodiversity credits are emerging as a powerful complement to carbon markets, enabling investments in conservation and ecosystem restoration. Voluntary markets, though still in their infancy, are gaining traction as companies seek nature-positive outcomes to enhance their Environmental, Social, and Governance (ESG) strategies.

Opportunities for Innovators:

• Advanced Monitoring: Technologies like satellite imagery, bioacoustics, and environmental DNA (eDNA) are revolutionising biodiversity tracking, making credits more measurable and reliable.

• Scalable Solutions: Projects such as wetlands restoration not only sequester carbon but also mitigate floods and improve water quality, creating multifaceted value.

Africa Is A Global Climate Powerhouse

From arable land and minerals to clean energy potential, Africa is home to vast undeveloped resources that are critical for delivering global net-zero goals. With the continent’s population projected to reach 2.5 billion by 2050, its industries are poised for unprecedented growth, offering a unique chance to embed sustainability at scale.

"Africa’s entrepreneurial spirit and natural assets create the perfect environment for high-quality climate solutions," said Robert Höglund, a carbon removal expert. "What’s needed is the right support to turn potential into action."

At Kinjani, our approach addresses this gap through tailored venture-building programmes, early-stage funding, and partnerships with universities to support science-driven innovation. By empowering local talent, we’re unlocking transformative opportunities that extend beyond carbon markets to biodiversity enhancement, water security, and economic development.

Partnering for Systemic Change

For corporates and carbon buyers, the time to act is now. By investing in high-quality African carbon and biodiversity credits, you’re not just offsetting emissions, you’re driving systemic change, empowering communities, and building resilience against the global climate crisis.

For universities and research institutions, collaboration with African innovators offers a unique chance to co-develop cutting-edge solutions that combine scientific rigor with local insights. Join us in creating a thriving ecosystem of climate innovation, built in Africa, by Africans.

Together, we can redefine climate action, unlocking Africa’s potential as a global leader in carbon and biodiversity markets while delivering meaningful co-benefits for both people and the planet.