The Federal Government has expressed optimism about the transformative potential of the Nigeria Carbon Market Activation Policy (NCMAP), projecting it could unlock a carbon market worth between $736 million and $2.5 billion by 2030.
This bold initiative is also expected to create between 600,000 and 2.3 million green jobs for Nigerian youth while fostering sustainable development across the country and the African continent.
Permanent Secretary of the Ministry of Industry, Trade, and Investment, Amb. Nura Rimi, stated these during the Corporate Climate Action event on Carbon Markets at the 79th UN General Assembly in New York.
He highlighted the NCMAP as a key part of Nigeria’s commitment to addressing climate change and boosting socio-economic development.
Framework for carbon markets and investments
Rimi emphasized that the NCMAP aims to establish a well-structured and transparent carbon market, providing a conducive environment for both local and foreign investments.
“The policy is backed by the federal government’s drive for climate resilience and economic sustainability. It’s not just a framework but a call for collective action and investment in our future,” he said.
- The policy reflects Nigeria’s ambition to become a leader in carbon market development across Africa, potentially serving as a model for other countries on the continent.
- It is expected to contribute significantly to Nigeria’s Nationally Determined Contributions (NDCs), with clear incentives for emission reductions.
- One of the standout features of the NCMAP is its emphasis on creating a transparent system for carbon credit trading, aimed at streamlining the approval process for carbon-related projects.
- This approach is designed to facilitate international carbon market transactions and attract global investors.
“The efficiency of the NCMAP’s institutional structure is intended to speed up project approvals and facilitate easier engagement with international markets.
“This will make Nigeria an attractive destination for global investors eager to tap into the nation’s carbon market potential,” Rimi added.
- Rimi also noted that the Federal Ministry of Industry, Trade, and Investment will ensure that the policy includes specific incentives to drive industrial growth and trade.
- These incentives will help create a business-friendly environment that encourages private sector engagement and boosts investor confidence in sustainable practices.
- The policy is seen as a crucial step in Nigeria’s journey toward building a low-carbon economy and fostering a greener, more sustainable future for the nation and Africa as a whole.
What you should know
In February 2024, Nigeria established an inter-governmental committee to create a plan for the country’s carbon market. The plan aims to accelerate green growth, transition to a just energy system, and standardize the carbon market ecosystem.
- The value of the global carbon market reached a record high of $949 billion in 2023, a 2% increase from the previous year.
- The global carbon offset/carbon credit market is expected to grow from $331.8 billion in 2022 to $1.6 trillion by 2028.
- This growth is driven by the world’s goal of reaching net-zero emissions and increased investment in carbon capture technologies.
