Abimbola Akosile
5 November 2009
opinion
Lagos — As the world marked the International Day on Climate Action on October 24, the issue of climate change has assumed a larger dimension. With the Climate Summit coming up in December in Copenhagen, Denmark, and the International Conference on Carbon Credit Opportunities in Abuja on November 9-11, Abimbola Akosile examines a scenario, which has a lot of potential for Nigeria
Tale of Two Events
The Federal Ministry of Environment, the Special Climate Change Unit in collaboration with JGD-GISL Panacea Limited; and support from the World Bank and other International Developmental Agencies, is billed to host an International Conference on Carbon Credit Opportunities in Nigeria, on November 9 - 11.
The theme of the conference, according to the Conference Director, JIDL-JISL Panacea, Mr. Rotimi Padonu, is to 'identify the scope for market based Climate Change projects in various sectors in Nigeria, build capacity for the development in order to make Nigeria the hub of CDM projects in Africa'.
Likewise, Environment ministers from all over the world are to gather at Copenhagen, Denmark between December 7 - 18, for the United Nations climate Conference, with the goal to deliberate and fashion a new framework, after the Kyoto protocol, to mitigate the impacts of Climate Change beyond 2012.
Kyoto Protocol's Mechanisms
To mitigate the effect of climate change on global temperature, the United Nations Framework Convention on Climate Change (UNFCCC) in 1992 institutionalised a Climate Change framework which was backed by a legally binding instrument on signatories to the convention.
The developed countries were assigned emissions reductions limit of which they were expected not to exceed while the developing countries were not bound by an assigned amount. Nigeria became a signatory to the convention on June 13 1992, and ratified the Kyoto Protocol (KP) in December 2004.
By using the flexible mechanisms, companies and countries can choose to reduce CO2 emissions where it is most cost-effective, for example in a developing country.
The flexible mechanisms are among the most central points in the Kyoto Protocol and the object of extensive discussion, but at COP7 in Marrakesh in 2001 agreement was reached on their ultimate form.
The mechanisms are called flexible, as they are intended to supplement the countries' or companies' own reductions in CO2. The issue of where in the world the reductions take place is irrelevant for the climate, and the flexible mechanisms allow this fact to be exploited.
By using the mechanisms, companies and countries can choose to reduce CO2 emissions where it is most cost-effective, for example in a developing country. This also involves the transfer of technology, financing and skills to developing countries.
The Kyoto Protocol operates with three flexible mechanisms:
International Emissions Trading: The 37 countries that in the Kyoto Protocol have set targets for the quantity of greenhouse gases they are allowed to emit are able to trade these emissions permits among themselves.
If a country has a surplus of these 'CO2 quotas' because it has switched to a cleaner form of economy, it can sell them to one of the other countries.
Clean Development Mechanisms and Joint Implementation: Clean Development Mechanisms (CDM) and Joint Implementation (JI) are mechanisms whose purpose is to reduce the emission of greenhouse gases in concrete projects and concurrently to promote climate initiatives and sustainable development in developing countries.
The projects generate CO2 credits that correspond to the reduction in greenhouse gases achieved by the project. The country that is hosting the JI or CDM project can sell the credits it obtains to companies or industrialised countries, which can use the credits to supplement domestic or internal initiatives.
One credit corresponds to one tonne of CO2 emissions. CDM credits are reductions from concrete projects in countries with no reduction obligations in the Kyoto Protocol.
These projects are carried out in developing countries, according to an information by the National Coordinator, Climate Change Network Nigeria (CCN Nigeria), Mr. Surveyor Efik. CCN Nigeria is hosted and coordinated by Human Orientation Movement for Environment (HOME) Nigeria.
Carbon Market Benefits
Nigeria as a ratified signatory to the KP of the UNFCCC can use the Clean Development Mechanism (CDM) as an instrument to bilaterally or unilaterally initiate CER yielding CDM projects that can earn her additional revenue and also aid sustainable development.
The Concept of Carbon Credit came into existence as a result of increasing awareness on environmental degradation and the resultant change in climate patterns over the years. The UNFCCC was adopted by consensus in New York on May 9, 1992, and was signed by 166 countries at the Rio summit in June; as a result it entered into force on March 21 1994.
The UNFCCC declared objective is "'to achieve stabilisation of greenhouse gas concentrations in the atmosphere at a low enough level to prevent dangerous anthropogenic interference with the climate system'".
Nigeria's First Communication to the UNFCCC, identified Land Use and Land Use Change and Forestry as the largest emitter of CO2 gas, the most potent of the GHG.
Although, gas flaring, transportation, and electricity generation are the most important energy use processes leading to CO2 emissions. Consequently, experts believe there is enormous potential for environmental and social benefits for Nigeria in participating in the carbon market in the identified sectors.
Purvis and Myers also identified that Land use changes are responsible for about 20 per cent of global GHG emissions, remarkably a larger part than the transport or industrial sectors globally.
It is clear that deforestation is a major contributor to GHG responsible for the climate crisis yet investment into forestry projects makes up less than 1 per cent of this emerging and thriving carbon market world wide.
"It is imperative that Nigeria, the States and Local governments shore up activities in afforestation and enable their potential in forest carbon markets", Padonu said.
To him, carbon market represents a new financing source for rejuvenating drylands, providing alternative sources of energy and making drought-prone areas more resilient to climate change.
"In the area of biodiversity protection, carbon finance can play an innovative role by creating, at the individual or community level, financing incentives to reverse natural habitat loss".
The social benefits will be improved means of earning a sustainable living, protecting of lands and property and availability of the ecosystem that would support the existence of mankind.
Forum of Opportunities
Opportunities of CDM Projects abound in different sectors in Nigeria. These include in Waste Management; Renewable Energy; Energy Efficiency; Land Use, Land Use Change and Forestry (LULUCF); Oil & Gas and Coal Mining Sectors; Transportation; and Industrialisation & Manufacturing.
According to Padonu, the conference seeks a binding investment commitment from International Organisations/Investment Bankers for CDM projects in Nigeria; a binding commitment from International Organisations for capacity building in Nigeria.
There will also be a communiqué for Africa for COP 15 in Denmark in December; while Nigeria is increasingly becoming the hub of CDM projects in Africa. Commitment of Clean Technological Transfer from Developed Nations is also expected at the Abuja forum.
Long-term outcomes of the conference include fostering of enabling environment and incentive schemes to support clean development mechanism projects in Nigeria; sustainable development of the economy and regional political stability.
There is also stimulation of innovative financial services and associated business for direct private and public sector investment, that can contribute to an enhancement of the triple bottom line (economic prosperity, environmental sustainability and social equity) in Nigeria; and greater understanding of the potential of climate change related concessionary financing and poverty alleviation.
Over 1,500 participants are expected to be in attendance from all over the world, consisting of African Leaders and high-level government officials, Nigeria Governors, Ministers, Local Government Chairmen, European Commission Officials.
There are also Industry Project Hosts, Nigerian and International regional business associations, South-South Companies (e.g. China, India etc) Project developers, Banks and Finance institutions, Civil Society representatives, technology institutes and universities; United Nations and its sister organisations; Carbon Consultants; Carbon Brokers/Exchanges.
Copenhagen Accord?
African delegates recently gathered at the summit on climate change in Nairobi, Kenya, in a bid to consolidate positions ahead of the global talks in Copenhagen, Denmark, in December.
The United Nations Secretary-General, Ban Ki-moon, has severally urged both rich and poor countries, developed and developing nations alike, to join hands to 'seal the deal' on climate change, so that the world can be a safer place.
The message is that if there is no deal in Copenhagen, the world is doomed to a future of global warming that leads to rising seas, glacial melting, floods and agricultural productivity losses.
Analysts believe that despite all the attention given to this crisis in the last couple of years, a deal appears far from being on the table.
According to reports, first, developed countries have to commit to deep emissions cuts, at least by 25 - 40 per cent by 2020 compared to 1990, which is not happening. Statistics say the individual offers add up to only 11-18 per cent, if the United States is included.
Also, at this moment, nearly all the developed countries made clear they intend to dump the Kyoto Protocol (which has international, legally binding emissions reduction targets) for a new agreement that seems to merely involve national pledges and a peer review process, reports say.
Developing countries are crying foul, and are expected to insist that unless the rich countries recommit themselves to bind their emissions-reduction targets for the period 2013-2020 at an ambitious level and within Kyoto, there can be no deal in Copenhagen.
Second, the developing countries have agreed they would also take mitigating action, but they would not bind these within an international treaty because they were not responsible for the climate crisis.
Third, the developed countries are pushing for a 'global goal' to cut global emissions by 50 per cent by 2050 (compared to 1990) and fourth is the finance issue. Developing countries are fighting for a new climate fund to be set up inside the UN climate convention, with equitable representation by all regions.
Timely Warning
Coordinator Environment Communication Research Group (ECREG) Lagos, Mr. Ikem Victor, who is also an Advertising Practitioner, has underlined the need to engage efforts to increase public awareness and understanding on climate change, using different creative media instruments to draw attention as well as boost general responses amongst Nigerians.
To him, "Climate change is not only an environmental issue. It has apparent economic and social consequences and is unavoidably linked to a broader sustainable development agenda. The response to climate change needs to be channeled into national, sectoral and local development strategies".
In line with the Federal Government's development agenda, he recommended that a National Action Committee on Climate Change (NACCC) be constituted and given the backing of law to coordinate the response to climate change issues by driving action through various levels of federal, state and local governments as well as integrating the private sector.
Victor's recommendations appear very timely. Nigeria's long dependence on crude oil is well documented. But the emergence of carbon credit brings a fresh dimension into the country's income and revenue generating process.
As other countries strive to explore and exploit the carbon credit scenario, Nigeria must not be left behind. As the country's oil and later the huge gas reserves dwindle, cleaner energy and resultant credit becomes more attractive. This is a key chance to boost the country's economy, with a resultant positive effect on the citizens. It must not be wasted.
Read comments. Write your own.
Copyright © 2009 This Day. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
Despite what they say, key world leaders are, in mind and heart, deniers who think saving banks and big industry that support them and their political parties is their most important job. For those of us concerned about the global hunger and health of the planet, these leaders appear to be replying "Let them eat cake." They should remember what happened to the author of this comment -- and expect the same result unless they recant and actually do something. The author, European royalty responding to hunger in the streets, was beheaded during a revolution.