The Touba project in Senegal is a public-private partnership between SONAGED (the Government of Senegal’s waste management company) and the fund. It was the world’s first privately-funded project to invest in the generation of country-to-country credits under Article 6 of the Paris Agreement.
CGP and the Government of Senegal entered into this innovative public-private partnership in November 2022 at the United Nations’ COP27 in Egypt. The project will produce high value UN Paris Agreement Article 6 credits from this activity as well as generate revenue from compost sales.
Infrastructure & Milestones
The project has hit key milestones this spring and the required infrastructure is nearing completion at the site in the city of Touba. The composting facility is now 98% built, and equipment delivery is forecast for January 2026, with operational launch expected by February 2026.
SONAGED is leading preparations for staff training and site utilities and is also taking on construction of an additional compost storage facility. ALLCOT, the project’s technical coordinator, is supporting equipment procurement, carbon accounting, and negotiations with potential buyer countries.
Carbon Credit Outlook
Carbon revenue will come from the sale of Article 6 credits from the Government of Senegal to buyer governments—likely Switzerland initially—over a 15-year period.
Project registration is underway with Gold Standard, though SONAGED is also exploring alignment with other standards and the UN directly. Compost batches will be certified by Senegal’s National Institute for Agricultural Research, and compost quality—especially carbon-to-nitrogen ratio—will be monitored continuously. The Government of Senegal will be the offtaker for the compost.
Financial Update
The investment remains positive in its net present value, despite construction delays on the ground in Senegal. CGP’s initial investment provided the catalyst for the government to take on the project, and the capital to purchase the machinery required.
The fund will receive a preferential return of at least 20% per annum with catchup provisions enabling recovery of proceeds from the construction phase of the project.
The Touba project continues to align with financial returns, environmental goals and social impact outcomes. Key next steps include finalising agreements, completing staff training, and securing long-term offtake agreements for credits.