NSIA and Vitol Sign a $50 Million Carbon Reduction Deal

Published on: 06 July 2022
by KnowESG
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The Nigeria Sovereign Investment Authority (NSIA) and Vitol have agreed to form a joint venture that would allow both firms to invest in a variety of carbon avoidance and removal initiatives.

The firms will be able to engage in Nigerian initiatives in partnership with local Non-Governmental Organisations (NGOs) that have previously participated in projects that contribute to the United Nations Sustainable Development Goals.

According to a statement by NSIA, both firms are anticipated to contribute an initial $50 million to this new initiative.

It was stated that the new venture is available to new investors as the partners grow their project pipeline. As a minor step toward a more fair energy transition in Africa, NSIA stated that the effort would strive to mobilise voluntary market carbon capital from partners and potentially third parties.

Uche Orji, the Managing Director and Chief Executive Officer of the NSIA, was quoted in the announcement as adding that the authority was committed to advancing climate solutions that will reduce Nigeria's carbon emissions.

Orji is optimistic that the NSIA's relationship with Vitol will be essential in establishing and advancing carbon reduction and avoidance in Nigeria.

He said this would be achieved by providing an enabling platform to trade carbon credits. He said: “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 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 emission-reduction results as well as significant socio-economic outcomes that will be of benefit to Nigerians.”

Michael Curran, head of environmental products at Vitol, stated that the company has invested in high-quality carbon mitigation projects worldwide for over a decade.

He stated that the company was delighted to be collaborating with the NSIA to support Nigeria's efforts to reduce greenhouse gas emissions through projects addressing major environmental and climatic risks.

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.”

Source: The guardian

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