TUE, 05 JULY, 2022-theGBJournal| The Nigeria Sovereign Investment Authority (NSIA), an investment institution of the Nigeria set up to manage funds in excess of budgeted hydrocarbon revenues and energy and commodities trader Vitol, Monday, announced that they have entered into an agreement to establish a joint venture to invest in a range of high integrity, socially impactful, carbon avoidance and removals projects.
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.
Uche Orji, MD & CEO, NSIA speaking on the partnership 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, Head of Environmental Products, Vitol said: “Vitol has been investing in high-quality carbon mitigating projects globally for over a decade, with a recent focus on sub-Saharan Africa. 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. 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.”
Vitol trades 7.6 million barrels per day of crude oil and products, and charters circa 6,200 ship voyages every year and its clients include national oil companies, multinationals, leading industrial companies and utilities.
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