The Nigeria Sovereign Investment Authority (NSIA) has entered into an agreement with Vitol to establish a joint venture that will enable both firms to invest in a range of carbon avoidance and removals projects. The pact will enable both companies to invest in projects in Nigeria, partnering Non-governmental Organisations (NGOs) that have previously got involved in related projects contributing to the United Nations Sustainable Development Goals. According to a statement by NSIA, both firms are expected to make an initial commitment of $50 million (N20.79 billion) to this new venture.
The new venture is open to new investors as the partners develop the project pipeline, it said. The NSIA said the initiative will seek to mobilise voluntary market carbon capital from the partners and potentially third parties in a small step toward a more equitable energy transition for Africa. The statement quoted the Managing Director and Chief Executive Officer, Mr Uche Orji, as stressing their commitment to playing a leading role in advancing climate solutions that will lower Nigeria’s carbon emissions. Orji expressed optimism that the partnership with Vitol will be key to establishing and accelerating carbon reduction and avoidance in Nigeria.
He said this will be achieved by providing an enabling platform to trade carbon credits. He said: “The NSIA is committed to playing a leading role in advancing Climate Solutions that help to lower Nigeria’s carbon emission as an integral part of its ESG strategy. “The NSIA expects that the partnership with Vitol will be key to establishing and accelerating carbon reduction and avoidance in Nigeria by providing an enabling platform to trade carbon credits, while channelling investments in sustainable projects to deliver emission-reduction results.
“We are therefore very pleased to be working with Vitol to channel our investments in sustainable projects to deliver emissionreduction results as well as significant socio-economic outcomes that will be of benefit to Nigerians.” The Head of Environmental Products, Vitol, Michael Curran, said the company had been investing in high-quality carbon mitigating projects globally for over 10 years. He expressed the firm’s delight in partnering the NSIA to support Nigeria’s efforts to reduce greenhouse gas emissions through projects that address critical environmental and climate threats. Nigeria, through the Nigerian National Petroleum Company Limited (NNPC) is pursuing an energy transition in order to promote economic growth and is gradually investing in gas to reduce carbon emissions while continuing to exploit hydrocarbon resources.