By Adéṣẹ́gun Ọṣìbánjọ́
Global energy demand continues to rise sharply, even as nations struggle to balance sustainability goals with economic growth. For developing countries, especially across Africa, this tension has created a new policy dilemma — how to industrialise without being penalised by global decarbonisation targets.
According to the Adéṣẹ́gun Nexus Foundation, in partnership with the United Nations, the solution lies in adopting the Circular Carbon Economy (CCE) framework — a pragmatic model that treats carbon as a resource to be managed, reused, and recycled, rather than simply eliminated.
CCE offers a new path for economic diversification, industrial expansion, and job creation, while still aligning with global net-zero ambitions.
Driving Economic Growth through Smart Carbon Management
At its core, the Circular Carbon Economy operates on four key principles: Reduce, Reuse, Recycle, and Remove. By embedding these in industrial policy, countries can turn carbon into value — producing new markets for captured CO₂, driving innovation in manufacturing, and opening opportunities for carbon-credit trade and investment partnerships.
Adéṣẹ́gun Ọṣìbánjọ́, President of the Foundation, says the approach “bridges the gap between environmental responsibility and economic progress.”
“Energy transition must not mean economic stagnation,” he explains. “By investing in clean carbon technologies like CCUS (Carbon Capture, Utilisation and Storage), developing nations can expand industrial output and protect jobs while meeting global sustainability targets.”
Boosting Local Industries and Jobs
CCE holds strong potential for Africa’s industrial base. The integration of carbon recycling and storage systems can stimulate new industries in cement, steel, chemical, and construction sectors — areas that currently account for more than one-third of global emissions.
According to Foundation estimates, such industries could contribute over $50 billion annually to Africa’s GDP by 2035 through carbon reuse and export-linked innovations.
It also creates jobs across value chains — from carbon technology engineering and pipeline infrastructure to data analytics and environmental services.
Attracting Sustainable Investment
With the right incentives, Circular Carbon projects could attract significant inflows from Green Climate Funds, ESG-focused investors, and international carbon markets.
Ọṣìbánjọ́ advocates for new financial instruments within the IMF’s Resilience and Sustainability Trust and the World Bank’s Climate Investment Funds to back carbon capture facilities in emerging economies.
“These funds must prioritise measurable results — not ideological posturing,” he adds. “The goal is to create industries that generate revenue and reduce emissions simultaneously.”
Securing Energy Stability
While renewables remain essential, CCE recognises that fossil fuels will continue to play a major role in global energy supply for decades. Rather than demonising hydrocarbons, the model focuses on cleaner extraction, efficiency, and reinvestment of carbon profits into renewable systems.
READ ALSO: OPEC Keeps Global Oil Demand Growth Projections Steady for 2025, 2026
“This dual approach ensures that no country is left behind in the global shift,” Ọṣìbánjọ́ says. “Energy stability is a prerequisite for economic stability.”
Global Cooperation and Market Integration
The Foundation also calls for integration of carbon capture credits into international trade systems under Article 6 of the Paris Agreement. This would allow nations to sell or exchange verified carbon credits derived from geological storage or industrial reuse — turning responsible carbon management into a tradable economic asset.
If adopted, analysts say, the CCE framework could become a multi-trillion-dollar global industry, rivaling renewables in investment potential and long-term economic impact.
A Balanced Future
For countries like Nigeria, where oil and gas still account for a major share of export revenue, the Circular Carbon Economy represents an opportunity to restructure the energy sector without collapsing it.
“It’s time to view carbon as capital, not catastrophe,” Ọṣìbánjọ́ concludes. “The world’s next economic boom will belong to nations that master the balance between growth and green innovation.”
Adéṣẹ́gun Ọṣìbánjọ́, B.Eng, MBA, is President of the Adéṣẹ́gun Nexus Foundation, and an advocate for sustainable industrialisation and equitable climate policy in Africa.