The Federal Government has launched the Emissions Trading Scheme, (ETS) with the goal of providing policy recommendations to guide the country’s transition to a green economy.
Establishment of the trading scheme, according to the government, is in accordance with the legal framework provided in the Climate Change Act 2021 to assist in the reduction of greenhouse gas emissions through a carbon market base approach to meet its Net Zero target.
Minister of Environment, Mr. Mohammed Abdullahi while launching the scheme at the flag off Business meeting on ‘Development of Emissions Trading Scheme’, in Abuja the nation’s capital, said a collective investment in addressing climate change will provide immense dividends for global economy.
According to him “Nigeria is aware that by coordinating its national emissions planning with international frameworks like the Emissions Trading Scheme, it will benefit from its efforts in the area of carbon management policy (ETS)”.
Mr Abdullahi also stressed that the Ministry would provide coordination at all levels required to galvanize and entrench climate action for the country.
“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, trigger bankable and commercial transactions which will ultimately generate jobs. It is important to note that this event will trigger the critical first steps towards defining roles and responsibilities to institutions and entities that will ensure the objectives of the National Emissions scheme is met which should essentially deliver on an effective mechanisms for successful carbon pricing for Nigeria. We are not in a hurry but we are determined to do a 100 meters dash in this process.” He stated.
The National Council on Climate Change’s Director General, Dr. Salisu Dahiru, noted that the purpose of the meeting was to discuss the Emission Trading Scheme and determine how it fits into the framework created to realize the nation’s Nationally Determined Contributions, or NDCs.
UNDP Country’s Representative, Mr. Mohamed Yahaya, maintained that an emission trading scheme is potentially one of the most powerful tools to build an effective global response to climate change to meet the NDC’s commitments the Nigerian government has made to the United Nations Framework Convention on Climate Change.
“Mr Yahaya said that the carbon trading would provide lot of environmental benefits to the country.
“In some countries, carbon emission trading has been known to be source of means of generating money for nature-based solutions to climate change, this believe, can be said to be the same for Nigeria in the nearest future.” Mr Yahaya added.
Representative of the Netherlands Ambassador to Nigeria, Mariska Lammers said that the Dutch government commended the high ambitions the Nigerian government have set in the commitment of NDC’s and its ambition to have a net zero target by 2060.
“The Dutch government will support the Nigeria’s adaptation and mitigations to the impact of Climate Change, we are very happy to be here, we like to support you and work together to meet your emissions target.” She added.