The Nigeria Sovereign Investment Authority (NSIA) and Vitol have signed a Joint Venture (JV) agreement to invest in carbon avoidance and offsetting projects.
NSIA announced the agreement via a statement which was obtained by BizWatch Nigeria. $50 million will be committed into the joint vwnture.
According to the statement, “NSIA and Vitol have agreed to make an initial commitment of US$50 million to this new venture. It will 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.
“It is anticipated that the new venture will be open to new investors as the partners develop the project pipeline. 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.”
The Managing Director and Chief Executive Officer, Uche Orji expressed optimism that the NSIA’s partnership with Vitol would be key to establishing and accelerating carbon reduction and avoidance in Nigeria.
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.
“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, the head of environmental products, Vitol, a Dutch energy and commodity trading company, said the company has been investing in high-quality carbon mitigating projects globally for over ten years.
“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,” Curran said.
“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.”
