Abstract

This study evaluates the prospects and challenges of implementing a carbon market in Anambra State, Nigeria, as a tool for climate change mitigation. Using a multiple linear regression model and stakeholder surveys, the research identified several barriers to market implementation, with awareness and education emerging as the most significant factor influencing stakeholder perceptions (p = 0.033). Other barriers, such as corruption (Mean = 4.27) and financial constraints (Mean = 3.64), were recognized but did not significantly impact perceptions of the market’s viability. Despite these challenges, stakeholders showed broad support for the proposed nine-step framework for carbon market implementation (Mean = 3.94), indicating confidence in the potential success of a phased approach. However, the overall prospects for successful implementation were rated moderately low (Mean = 2.69), primarily due to concerns over public awareness and engagement. The findings suggest that while technical, financial, and institutional barriers are present, the key to a successful carbon market lies in addressing knowledge gaps and building stakeholder engagement. This study contributes to understanding the dynamics of carbon market implementation in sub-national regions of developing countries and highlights the importance of tailored strategies to improve public education and trust in government commitment.