Nigeria eyes $2.5b carbon credit

Vice Chancellor, University of Nigeria, Nsukka (UNN) Prof. Simon Ortuanya has disclosed that Nigeria is positioning itself for a sizable share of the $2.5 billion in  carbon-credit investment by 2030, as researchers  all over Africa explore the potentials and challenges of the voluntary carbon market in Nigeria and other African countries.

The VC disclosed this at the stakeholders validation workshop on the potential and challenges of the voluntary carbon market in Abuja, stating that globally, the Voluntary Carbon Market was valued at $2 billion in 2022. Analysts place Africa’s potential VCM value at up to $1.5 trillion by 2050, provided integrity and equity are safeguarded.

He said: “In accordance with Article 6 of the Paris Agreement which is allowing countries to trade carbon credits to meet their emission reduction targets. Although the Voluntary Carbon Market can help reduce emissions and serve as a source of revenue to countries in the global South, in Nigeria, without proper analysis to support efficient implementation, there is a risk of significant carbon leakages.

“The VCM has shown remarkable growth after its existence for two decades. Without a robust governance system, there could be substantial emission leakage, with negative distributional implications. It is critical to generate and advance knowledge among stakeholders, including government, businesses, and local actors, on these challenges and uncertainties.

Speaking, the Director Resource and Environmental Policy Research Centre (REPRC)- EfD Nigeria, Prof Nnaemeka Chukwuone said the workshop is at the validation stage where findings are revealed. Before now there was no carbon market framework in Nigeria, but now there is carbon market framework.