In an ambitious move that promises to reshape the landscape of sustainable energy and carbon trading in Africa, Nigeria has officially inaugurated an Intergovernmental Committee to spearhead the Activation Plan for the country’s Carbon Market. Initiated by Vice President Kashim Shettima on March 7, 2024, this strategic initiative aims to tap into the global carbon market, valued at an estimated $2.5 billion, aligning with international efforts to combat climate change through reduced carbon emissions.
Understanding Carbon Markets: A Visual Guide to How They Work
Source: Paia Consulting
The inauguration ceremony, held at the Presidential Villa in Abuja, marks a significant milestone in fulfilling President Bola Ahmed Tinubu's commitment towards a greener Nigeria. Chaired by Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service (FIRS), the committee's formation is a direct outcome of the Intergovernmental Committee on Carbon Markets that President Tinubu announced at COP28 in December 2023. This Committee intends to leverage support from numerous international stakeholders, including the Africa Carbon Market Initiative (ACMI), launched at COP27 in Egypt.
In his inaugural speech, Vice President Shettima emphasised the initiative's role in attracting crucial investments and catalysing emission reduction. "This initiative is a call for collaboration, innovation, and collective action," he stated, underscoring the government's focus on utilising natural gas as a transitional fuel, alongside investments in renewable energy sources.
Nigeria's Primary Energy Requirement Under Current Plans and Policies
Source: IRENA 2023
This initiative is not merely a domestic agenda but a beacon for international investments, particularly attracting companies focused on renewable energy. With Nigeria's vast potential in renewable energy resources and its commitment to reducing its carbon footprint, the country is positioning itself as an increasingly attractive destination for foreign investors aiming to contribute to global sustainability goals.
For solar financing companies already engaged in or considering investments in Nigeria, this development signals the country's readiness to embrace green growth and industrialisation. It presents a unique opportunity to be at the forefront of Africa's transition to renewable energy, contributing to a sustainable future while tapping into a market with significant growth potential.
As the journey unfolds, Empower New Energy will continue to monitor progress and provide further updates.
