To help deliver Nigeria’s net-zero targets, the Nigeria Sovereign Investment Authority NSIA) is partnering Vitol to unveil Carbon Vista, a joint venture initiative for decarbonisation in the country.
The two organisations which sealed an agreement to jointly invest in a range of decarbonisation projects said they were also in the process of reaching a final investment decision (FID) on the first set of projects.
Meanwhile, they said an initial investment of $50 million has been committed with a view to attracting new investors as the project pipeline is being developed.
The NSIA said in a statement that the JV would commence with the execution of projects in Nigeria, by partnering with local firms with proven track records of successfully delivering high-quality projects, combining carbon offsetting with social outcomes that contribute to the attainment of UN Sustainable Development Goals.
“Investments will focus on various sectors, including infrastructure, agriculture, and energy. This initiative will seek to mobilise capital from funding partners to the voluntary carbon market in support of the effort of the Nigerian government toward a more equitable energy transition for Africa,” the statement said.
The JV’s first investment, the sovereign investment agency said, would be in a household energy efficiency programme, including improved efficiency, clean cooking and water filtration devices.
“Approximately one billion people in sub-Saharan Africa rely on wood and charcoal for daily cooking and water purification, a major cause of the nearly 4 million hectares of annual deforestation and degradation across the continent.
“Providing rural households with efficient household devices significantly reduces wood fuel consumption and related greenhouse gas emissions and household air pollution, while also saving communities money and time. The initial scope of the project is to deploy up to 200,000 devices of each.
“The realisation of Nigeria’s Energy Transition Plan (ETP) requires a radical rethink of our energy consumption mix beginning from the micro-level,” the Managing Director/Chief Executive Officer, NSIA, Aminu Umar-Sadiq, said.
“Without incremental steps to address the fundamental issues, including water security and homestead energy access and consumption, achieving the ETP goals may remain unrealized and further exacerbate our climate risks.
“Carbon Vista adopts a pragmatic approach to these challenges. We are pleased to be leading this novel path for delivering Nigeria’s net-zero targets,” he added.
He said the joint venture between NSIA and Vitol should be a catalyst in the creation of the domestic emissions trading scheme, which is a pioneer in the Africa Carbon Market Initiative (ACMI) and would create a pipeline of high-quality credits into the global voluntary carbon markets.
When combined with a comprehensive corporate energy transition strategy, he said offsetting carbon emissions would play a key role in meeting the Paris Climate Agreement objectives and contribute toward the UN Sustainable Development Goals.
