This was stated by the president of the Sustainable Energy Practitioners Association of Nigeria, Dr Chidi Onuoha, who added that this role will also allow the country to access the green bonds attached to the agreement.
According to local media THISDAY, Onuoha revealed this after the closing ceremony of the sixth edition of the Nigeria Alternative Energy Expo (NAEE) in Abuja.
Green bonds are standard bonds with a green element as a bonus feature, which have been created to fund projects that have positive environmental and/or climate benefits.
It is reported that the green bond market, which took off in recent years with $42 billion issued in 2015, has continued to grow with issuance in 2016 hitting over $50 billion by September.
According to THISDAY, Onuoha said Nigeria recently signed the Paris Agreement, and is now better positioned to drive the initiative for West Africa. He added that a framework has been set up in this regard.
Onuoha said: “The president [Muhammadu Buhari] said in Paris that Nigeria will reduce carbon emission under the climate change agreement by 20% unconditionally, using renewable and energy efficiency sources and ending gas flaring. That is our own Nationally Determined Contributions (NDC).
“We have been able to design a framework for Nigeria’s achievement of this NDC. With this, we are going to be able to earn revenue from the carbon market, which is huge with billions of dollars.”
Nigeria attracting green bond market
THISDAY quoted Onuoha stating that if Nigeria ratifies the Paris Agreement, the practical aspect of implementing it will attract so much of the green funds.
“We saw the need to set up the West African Emission Trading Association, we have it in South Africa where their cities have green bond initiatives, as well as in East Africa,” he said.
“These are some of the things we will use for the Paris Agreement and West Africa, which sees Nigeria as a hub and has asked Nigeria to develop the process, and that is what we have done.”
He added: “We have been able to set up the West African Emission Trading Association. With this, we want to be ready to tap into the business opportunities that the carbon we save can give us. We want to be able to trade the carbon for money because emission trading is key in this business.”
Featured image: Ashurst