The Nigeria Sovereign Investment Authority (NSIA) says it has sealed a joint venture (JV) agreement with Vitol to invest in carbon avoidance and offsetting projects.
In a recent statement, NSIA said the agreement would commit $50 million into the new venture.
Vitol is a Dutch energy and commodity trading company.
The NSIA said through the agreement, both companies would invest exclusively in projects in Nigeria, partnering with local non-governmental organisations which deliver high-quality projects that combine carbon offsetting with social benefits.
It further explained that the new venture is open to new investors as the partners develop the project pipeline and that the initiative would seek to mobilise voluntary market carbon capital from the partners and potentially third parties towards a more equitable energy transition for Africa.
Managing director and chief executive officer, NSIA, Uche Orji, said the authority is committed to playing a leading role in advancing climate solutions that would reduce Nigeria’s carbon emissions.
He expressed optimism that the NSIA’s partnership with Vitol would be key to establishing and accelerating carbon reduction and avoidance in Nigeria.
“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,” Orji said.
“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.”
Also speaking, head of environmental products, Vitol, Michael Curran, 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 towards the UN Sustainable Development Goals.”
