Nigeria moves to partake in USD$175bn carbon trade market - TrendyNewsReporters Nigeria moves to partake in USD$175bn carbon trade market - TrendyNewsReporters
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Nigeria moves to partake in USD$175bn carbon trade market

Nigeria has taken its first major step towards benefiting from the over USD $175 billion per annum carbon trade with the development of Nigeria’s Emission Trading Framework.

The Minister of Environment, Barrister Mohammed Abdullahi, gave this indication while initiating the development of a national emissions framework, in Abuja, on Tuesday.

He said, the President Muhammadu Buhari-led administration has over the years, demonstrated commitment towards reducing global warming.

Abdullahi recalled that Nigeria signed the Paris agreement with the goal to limit global warming to well below 2 degrees, and preferably to 1.5 degrees Celsius, compared to pre-industrial levels in addition to
reducing global greenhouse gas emissions as soon as possible to achieve a climate-neutral world by mid-century.

The Minister said, “Towards collaborative achievement of this global temperature goal, the Federal Government of Nigeria has shown exemplary initiative in this respect.

“ At COP 26 in Glasgow, H.E. President Buhari announced Nigeria’s Net Zero target of 2060, making Nigeria the first major developing country and the first in Africa to undertake such a commitment.

“His speech marked the beginning of a road map signaling to the international community that while greater responsibility is on the developed world, Nigeria is
committed to providing leadership in climate governance both regionally and internationally.

“As you may all be aware, operationalization of this Act started with the appointment of the pioneer Director General for the Climate Change Council.

“The government is further taking the lead on the establishment of a trading scheme, with legal framework provided in the Climate Change Act of 2021 for the reduction of greenhouse gas emissions through a cap and trade-based emissions trading schemes to meet the Net Zero target from today.

“We should all be reminded that a collective investment in addressing climate change will eventually provide immense dividends for the global economy alongside the economic co-benefits that come with it.

“Nigeria realizes that its efforts on carbon management policy stand to gain from aligning our national emissions planning to
international mechanisms such as Emissions Trading Scheme (ETS).”

He equally said, “Nigeria cannot afford to ignore the possibilities of generating upwards of 250 metric tons of CO2E annually amounting to an estimated value in excess of 3 Billion
USD.

“The Federal Ministry of Environment is therefore poised to explore all options that are driven by our domestic realities and yet in tune with global benchmarks and best practices to ensure the development of a scheme that adds value to the environment, triggers bankable and commercial transactions which will ultimately generate
jobs.”

Earlier, a representative of the United Nations Development Programme, Mohammed Yahaya, who welcomed Nigeria’s commitment toward achieving earlier stated goals, said, “The global carbon trade had in a short space of time grown into a market worth over USD$175 billion a year.

“The history of carbon markets can be marked as a great political success story and is today an integral part of international climate change policies across the world.

“Carbon credits are provided for activities that claim to benefit the climate either by removing CO2 from the air or preventing it from being emitted in the first place, Carbon trading is the procurement of these credits. This is what has given birth to the Emissions Trading Scheme or Systems.“

Also speaking at the event, the Climate Change Policy Manager at the British High Commission, Adewuwa Obasuyi, said, “The era of carbon offsetting delaying meaningful climate action is over. And transparent, reliable markets will play a role in this new era so we all are very glad that Nigeria is taking this important step today.”

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