Energy Transition: NSIA Unveils $500m Renewable Investment Platform
The Nigeria Sovereign Investment Authority (NSIA) has launched a $500m Renewables Investment Platform for Limitless Energy (RIPLE). This initiative is dedicated to the development, investment, and operation of renewable energy projects across the entire value chain. NSIA is an independent investment institution, set up by an Act of parliament to manage funds in excess of budgeted hydrocarbon revenues. While RIPLE is another milestone initiative by NSIA in the climate sustainability asset class, having previously launched Carbon Vista with Vitol and the Construction Finance Warehouse Facility. With RIPLE, NSIA is positioned to expand energy access, enhance energy efficiency and ensure energy security. The launch of RIPLE is accompanied by the execution of a strategic partnership agreement that seeks to further redefine Nigeria’s energy landscape with the International Finance Corporation (IFC). The pilot for this initiative is located within the Tokarawa Industrial Hub in Kano State and it involves setting up a generation and distribution system to meet 70MW of unsuppressed energy demands of industrial activities, commercial enterprises, and residential customers in an areacovering about 9,000 connections. Commenting on the partnership, the Managing Director/CEO of NSIA Mr. Aminu Umar-Sadiq, said, “The collaboration between NSIA and the IFCis a clear demonstration of NSIA’s dedication to sustainable energy transition in Nigeria. As the custodian of economic resources for current and future generations of Nigerians, tackling climate risks is integral to NSIA’s objectives. We recognize the many opportunities it offers for innovation, growth, and economic transformation. “We are excited to partner with the International Finance Corporation to advance the transition to energy efficient solutions in Nigeria, an institution that shares our commitment to sustainable development,our focus is to empower the customers with a resilient and environmentally friendly energy solution that will optimize productivity and reduce carbon footprint ” said Program Manager, RIPLE, Mr. Yusuf Umar, Further speaking Regional Manager Africa, IFC Dan Croft, said, “Reliable electricity is crucial for improving quality of life, productivity, and economic growth in Nigeria. IFC is pleased to collaborate with our longstanding partner, NSIA, to develop and implement the first phase of this innovative energy solution which will reduce greenhouse gas emissions and reliance on fossil fuel. The energy solution will also deliver reliable power supply for commercial, residential as well as industrial use.”
Reducing Supply Will Not Solve Climate Change – ExxonMobil
Oil major ExxonMobil Corp has warned that attempting to limit the supply of fossil fuels will impede progress toward achieving net zero emissions as well as potentially perpetuating poverty for millions in the developing world. Speaking at the Asia Pacific Economic Cooperation CEO Summit in San Francisco, ExxonMobil CEO Darren Woods, insisted that the solution to climate change has been too focused on reducing supply, noting that it’s “a recipe for human hardship and a poorer world.” Woods said that attacking oil and gas companies for their role in climate change will only serve to keep net zero as an “aspiration” rather than a reality Woods called for governments to “harness the industry’s capabilities for change” by providing taxpayer support for emissions-reducing technologies like carbon capture before market forces can take over. Exxon has ramped up its energy transition efforts over the past two years after losing a bruising proxy battle with activist investor Engine No. 1 at the height of the ESG movement. It plans to spend $17 billion over six years on low-carbon initiatives, and it recently acquired Denbury Inc., the largest carbon dioxide pipeline operator in the US, for about $5 billion. But Exxon is also spending big on oil and gas. It agreed to buy US shale driller Pioneer Natural Resources Co. last month in a deal valued at about $62 billion. Woods is adamant that Exxon won’t reduce oil and gas production or invest heavily in renewable energy as his European peers have done. Instead, the Texas oil giant will invest in low-carbon technologies that complement fossil fuels such as carbon capture and hydrogen. “Oil and gas companies reliably provide affordable products essential to modern life,” he said. “Making them into villains is easy. But it does nothing – absolutely nothing – to accomplish the goal of reducing emissions.” In unusually personal remarks, Woods talked about his commitment to the environment. “I’m a father and grandfather – who cares about his family, their quality of life, and their futures. Which means I care very much about our environment and the health of our planet,” he said. He also attempted to draw a line under the multiple climate lawsuits that have dogged Exxon for much of the last decade. “I’m fully aware that there are many who question ExxonMobil’s commitment because of what was said over 30 years ago – or what they think Exxon knew back then,” he said. “Frankly, I’m more interested in what ExxonMobil knows today. Climate change is real. Human activity plays a major role,” he added.
Global Energy Supply: IEA Forecasts 73% Drop In Fossil Fuels’ Share
The International Energy Agency (IEA) has projected that fossil fuels’ share in global energy supply would drop to 73% by 2030 and carbon dioxide emissions peaking by 2025. This is despite the fact that global oil demand would peak this decade at about 102 million barrels per day (mbd) for two more decades. The agency, in its latest ‘World Energy Outlook (WOE) 2023’ report stated that the drop in fossil fuel share in the global energy market had remained at around 80% for decades. According to the IEA’s Stated Policies Scenario (STEPS) data, from 2030, oil consumption will begin a slow decline by decreasing by more than four million barrels per day to 97.4mbd in 2050, the IEA said. The report further predicted that in 2030, clean technologies would play a “greater role than today” as electric cars on the road worldwide will increase by 10 times, and renewables’ share of the global electricity mix will be near 50%, up by 30% while heat pumps and other electric heating systems will outsell fossil fuel boilers globally, and investment into new offshore wind projects will be three times more than new coal and gas-fired power plants. Commenting on the report’s findings, Global Net-Zero Transformation Advisory Operations Manager, EcoAct, Lindsay Ventress, said: “The World Energy Outlook 2023 underscores the increasingly narrow path toward preserving the goal of 1.5°C warming, yet provides hope that this remains attainable if we promptly embark on transformative climate actions. “The report’s call for an annual twofold increase in energy efficiency improvements underscores its critical role in a sustainable future, but also the current failure of legislators to get to grips with this vital requirement. In light of this, businesses cannot afford to merely wait for government commitments; they must become catalysts for progress,” she added. Even so, the IEA maintained that demand for fossil fuels was set to remain “far too high” to limit the global rise in temperatures to 1.5°C, as per the Paris Agreement. The agency further warned that despite the impressive growth in clean energy, if the policies are not changed, global emissions would remain high to push the temperature limit by around 2.4°C this century. The STEPS also estimates a peak in energy-related carbon dioxide emissions in the mid-2020s. Speaking on the report’s findings, the IEA Executive Director, Fatih Birol, explained: “Taking into account the ongoing strains and volatility in traditional energy markets today, claims that oil and gas represent safe or secure choices for the world’s energy and climate future look weaker than ever.” According to the report, the tense situation in the Middle East “is a reminder of hazards in oil markets a year after Russia cut gas supplies to Europe”. In the STEPS, the share of seaborne crude oil trade from the Middle East to Asia rises from around 40 per cent to 50 per cent by 2050. The WOE highlights the fears in the natural gas markets due to instability and price hikes after Russia cut supplies to Europe while also foreseeing a surge in new liquefied natural gas (LNG) projects from 2025, with the prospect of adding more than 250 billion cubic metres per year new capacity by 2030, representing 45% of the current global LNG supply. While some of the immediate pressures of the global energy crisis have eased due to the current geopolitical situation and the global economic developments, the IEA drew attention to the “unsettled” global energy market, noting that “this underscores, once again, the frailties of the fossil fuel age and the benefits for energy security as well as for emissions of shifting to a more sustainable energy system.” It stated that developing economies had been experiencing the largest increase in demand for energy services as the extreme volatility in energy markets have pushed for an “affordable, reliable, and resilient supply”.
Environmental Degradation: Sanwo-Olu Seals Mile 12, Owode Onirin Markets
Lagos State government has sealed the Mile 12 International Market and the Owode Onirin Market on Friday for creating environmental malfeasance. The Ministry of Environment and Water Resources stated in Ikeja, that the markets were sealed because of indiscriminate dumping and burning of refuse, the filthy environment, and blocked drains. It stated that the Commissioner for Environment and Water Resources, Mr Tokunbo Wahab, directed the Lagos Waste Management Agency and “KAI’’ to seal the markets. “The reasons for sealing the markets are not unconnected with the indiscriminate dumping and burning of refuse, filthy environment, blocked and littered drains. “The action also followed illegal and indiscriminate parking and abandonment of trucks on the highway leading to the two markets, impeding free flow of traffic,’’ the ministry stated.
Net-zero emission not achievable with Green tax suspension – Expert
An environmental expert, Mr Olumide Idowu, has faulted the suspension of the green tax on Single-Use Plastic, saying it would slow down the progress so far recorded by Nigeria in that regard. Former President Muhammadu Buhari had in a circular dated April 20, approved a 10 percent tax on Single Use Plastic (SUP) a few weeks before leaving office on May 29. And last week, President Bola Tinubu ordered the suspension of the newly introduced 10 percent tax on SUPs in a move targeted at reducing the cost of business in Nigeria. Nigeria plans to achieve net zero emission by 2050. He said that the suspension of the tax meant that there would not be an additional charge or tax on activities that harm the environment. The suspension of the tax has generated a lot of reactions from environmentalists and climate change experts across the country. While some believe the decision would promote the ease of doing business in the country, others believe the suspension would hinder progress at curbing the menace of plastic pollution. Speaking Monday in Lagos, the Executive Director of International Climate Change Development Institute (ICCDI), said the suspension would be problematic as green tax is meant to discourage polluting activities and encourage environmentally friendly practices. “Achieving net zero means that the country’s GreenHouse Gas (GHG) emissions are balanced out by removing an equivalent amount of greenhouse gases from the atmosphere. “It is an important goal in fighting climate change. “However, without the green tax, there may be less incentive for industries and individuals to reduce their carbon footprint and adopt cleaner technologies,” Idowu said. Idowu said that green tax helps to fund renewable energy projects, environmental conservation efforts, and other initiatives that promote sustainability. He urged the government to consider the long-term effects and the impact on the environment when making decisions about policies like the green tax. He urged the government to find alternative ways to encourage and support sustainable practices that could help Nigeria move closer to achieving its net zero goals.