- The 92nd Power Dialogue highlighted Nigeria’s Carbon Markets, revealing significant untapped potential despite its early stages.
- While the market emphasizes integrity in dealing exclusively with high-quality carbon credits, it calls for innovation to direct climate finance effectively, especially towards projects in the Global South.
- Fostering a robust market through regulatory frameworks, collaborations with certifying entities like VERRA, and private sector investments, while initiatives like Carbon Vista and ACMI aim to enhance inclusivity and education for market participation.
In March 2024, the Electricity Hub convened its 92nd Power Dialogue, spotlighting Nigeria’s Carbon Markets. Despite being in its early stages, signs point to significant potential within this market. Panellists at the event included, Ruchi Soni, Program Manager at the Africa Carbon Market Initiative (ACMI), the Chief Executive Officer at SME Funds Capital, Dr. Jubril Adeojo, Head of Agriculture Investments at the Nigeria Sovereign Investment Authority (NSIA) and Emeka Okpukpara, Partner at Nextier.
Policies are taking shape, and the trading infrastructure is advancing, presenting a tangible opportunity, especially with our exchange set to launch soon. We understand that integrity is paramount to fully realize the market’s potential and effectively contribute to decarbonization.
Hence, we exclusively deal in high-quality carbon credits subjected to rigorous due diligence and meeting the highest global standards. Yet, for the market to mature further, innovation is crucial, especially in directing climate finance to projects and regions in need, notably in the Global South.
Having conducted two major carbon credit auctions, our commitment lies in fostering a robust market for carbon offsets, addressing climate change while uplifting livelihoods in the Global South. Carbon markets are vital platforms for trading carbon credits, essential in the global carbon emissions reduction effort.
Operationalizing Nigeria’s carbon market involves exploring local and international opportunities, engaging stakeholders, and formulating economic development strategies. The United Nations advocates for countries to establish carbon market frameworks aligned with emission reduction goals.
Africa, including Nigeria, encounters challenges in accessing climate finance. The country receives approximately $250 million annually. There is a pressing need to stimulate demand and supply to unlock additional funds.
Carbon Vista, a collaboration between NSIA and Vitol, aims to invest in impactful projects to reduce Nigeria’s emissions and align with its NDCs. The carbon market encompasses renewable energy and agriculture sectors, offering significant potential for social impact and emission reduction.
Developing Nigeria’s carbon market requires regulatory frameworks, collaboration with entities like VERRA, the world’s leading certifier of voluntary carbon offsets, and private sector investments. The Africa Carbon Markets Initiative (ACMI) seeks to enhance carbon market participation across the continent, emphasizing inclusivity and education.
While SMEs can engage in carbon markets, commitment, investment, and comprehension of global standards and market dynamics are vital. Recommendations to unlock Nigeria’s carbon market potential include enhancing investor confidence, fostering partnerships, promoting education, and developing regulatory frameworks.
The Electricity Hub has released a report summarizing the discussions from the Power Dialogue, available for free.