FG sets blueprint for $2.5 billion carbon market with new committee

FG sets blueprint for $2.5 billion carbon market with new committee

The Federal Government is paving the way for a substantial $2.5 billion carbon market by forming a new committee, as Vice President Kashim Shettima officially inaugurated the Intergovernmental Committee on Carbon Market Activation Plan on Thursday. 

The committee’s goal is to develop a systematic blueprint for a sustainable carbon market, as stated in a statement by Stanley Nkwocha, the Vice President’s spokesperson.  

This move aligns with President Bola Ahmed Tinubu’s objective to minimize Nigeria’s carbon emissions and is supported by the Africa Carbon Market Initiative, enhancing Nigeria’s entry into the lucrative $2.5 billion carbon market. 

Chaired by Mr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service, the committee’s formation follows its announcement by President Tinubu at COP28 in December 2023.  

During the inauguration at the Presidential Villa, Abuja, Shettima emphasized the administration’s strategy to use natural gas as a transitional fuel and the committee’s role in shaping a national carbon market strategy.  

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This plan is set to draw significant investments, facilitate emission reductions, and promote sustainable growth in Nigeria. 

• Shettima stated: “However, the intervention we seek can’t be achieved unless the best minds of this nation come together to oversee our transition, and I do not doubt that we are on the right track, especially with the calibre of the technocrats that are in this room.
• “We gather today as part of the broader initiative to position Nigeria and, by extension, Africa in green growth manufacturing and industrialisation. This underscores our commitment to sustainable development and environmental stewardship.
• “This justifies our focus on natural gas as a transition fuel alone site investment in renewable energy sources. Our mission is to meet the needs of the present while safeguarding the future.
• “The sincerity of our commitment to coordinating carbon-related market plans and initiatives has never been in doubt. The Intergovernmental Committee on Carbon Market stands as a testament to our dedication to developing a national carbon market strategy.”

Shettima further noted the carbon market mechanism’s implementation signifies a major shift, urging committee members to view it as a call for collaboration, innovation, and collective action.  

He emphasized the transition from conference ideas to actionable steps, highlighting the partnership with the African carbon market initiative as a step towards environmental responsibility and positioning Nigeria as a prime destination for carbon market investment.  

This move, he stated, marks a historical step in enlarging Nigeria’s role in both voluntary and mandatory carbon markets, with the potential to unlock significant climate financing. 

More insights

• On his part, Co-chairman Mr. Zacch Adedeji acknowledged the initiative’s potential for Nigeria’s sustainable development and praised the Vice President’s dedication to advancing Nigeria’s carbon market.
• He promised that the committee would collaborate closely with the African Carbon Market Initiative to exploit Nigeria’s substantial carbon potential, valued at over $2 billion.
• Similarly, the Director-General of the National Council on Climate Change, Dr Salisu Dahiru, mentioned that the committee has been proactive since its inception in December 2023 by President Tinubu during COP28 in Dubai.
• Dahiru pointed out that carbon market and trading are crucial for any country’s climate change mitigation and adaptation strategies, contributing to global climate management efforts.

FG sets blueprint for $2.5 billion carbon market with new committee