In effort to reduce carbon emissions, the Nigeria Sovereign Investment Authority (NSIA), and commodity trader, Vitol, yesterday announced an agreement to establish a joint venture (JV) to invest in a range of high integrity, socially impactful, carbon avoidance and removals projects.
NSIA and Vitol also agreed to make an initial commitment of $50 million to this new venture, and open to new investors as the partners develop the project pipeline, according to a joint statement.
NSIA is an investment institution of the Federation with the statutory mandate of managing funds in excess of budgeted hydrocarbon revenues.
It is also empowered to receive, manage, and invest funds in a diversified portfolio of medium and long-term assets on behalf of all three tiers of government including the Federal Capital Territory, in preparation for the eventual depletion of Nigeria’s hydrocarbon resources.
The JV fund will be used to invest exclusively in projects in Nigeria, partnering with local NGOs, which have a proven track record of successfully delivering high-quality projects that combine carbon offsetting with social benefits that contribute to UN Sustainable Development Goals (SDGs).
This initiative will seek to mobilize voluntary market carbon capital from the partners and potential third parties in a small step toward a more equitable energy transition for Africa.
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.
Commenting, the Managing Director/CEO, NSIA, Uche Orji, was quoted as saying: “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.
“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.
“We are therefore very pleased to be working with Vitol to channel our investments in sustainable projects to deliver emission-reduction results as well as significant socio-economic outcomes that will be of benefit to Nigerians.”
Also, Head of Environmental Products, Vitol, Michael Curran, said: “Vitol has been investing in high-quality carbon mitigating projects globally for over a decade, with a recent focus on sub-Saharan Africa.
“We are delighted to be partnering with NSIA to support Nigeria’s national efforts to reduce greenhouse gas emissions through projects that address critical environmental and climate threats.
“The projects will have a clear focus on delivering social benefits, alongside the highest standards of carbon offsetting. “Used appropriately as part of a comprehensive corporate energy transition strategy, offsetting will play a key role in meeting the Paris Climate Agreement objectives and contribute toward the UN Sustainable Development Goals.”
