• Monday, October 14, 2024
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Meet Carbon Limit Nigeria, the firm behind 70% of Nigeria’s carbon credit project

Meet Carbon Limit Nigeria, the firm behind 70% of Nigeria’s carbon credit project

Carbon Limit Nigeria is emerging as a dominant force in the burgeoning Nigerian carbon credit market.

With a focus on clean energy utilization, climate policy development, and carbon assessment, Carbon Limit Nigeria is driving sustainable solutions for both the public and private sectors.

Their work spans diverse industries, including oil and gas, electricity, and alternative fuels, demonstrating a comprehensive approach to tackling the climate crisis.

“For 15 years, Carbon Limits has become the go-to name for carbon expertise in Nigeria. We’ve tackled various projects, offering both advisory services and climate finance support,” James Ogunleye, chief technical officer at Carbon Limit Nigeria.

He added, “On the finance side, we’ve played a key role in securing carbon credits for numerous projects, contributing to over 70 percent of all such projects in Nigeria”.

A carbon credit is a token representing the avoidance or removal of greenhouse gas emissions, measured in tonnes of carbon dioxide equivalent (tCO2e).

This credit is generated through projects aimed at reducing or eliminating greenhouse gas emissions, such as renewable energy initiatives, afforestation projects, energy efficiency improvements dedicated carbon sinks in the ocean (blue carbon) and carbon capture technology.

By investing in these projects, Carbon Limit Nigeria believes entities can earn carbon credits, which can be sold on the carbon market or used to offset their emissions.

Jordan McCrackin, chief commercial officer said Carbon Limit Nigeria is consulting for large conglomerates within the African region.

“These companies are aware of the importance of ESG and are looking for strategic guidance. We’ve helped them navigate global and local trends, identify internal synergies, and develop ESG strategies,” McCrackin said.

He added, “We’re exploring credit opportunities for these players and identifying best practices from similar countries like Indonesia and Malaysia to bring fresh ideas to the region”.

Selected projects

BusinessDay’s findings showed Carbon Limit Nigeria worked with three registered gas flaring reduction projects in Nigeria, generating the largest amount of carbon credits in Africa.

The first has generated over 2,000,000 tons of carbon credits and has gained additional revenue from the sale of carbon credits. The two other projects have the potential to generate up to 400,000 tons of carbon credits annually, both projects have now been registered under the EU-Fuel Quality Directive Scheme.

Read also: Nigeria pushes for Digital Transformation in Africa’s oil, gas sector

Carbon Limit Nigeria worked with Shell Petroleum Development Company of Nigeria (SPDC) Joint Venture in the Niger Delta to monitor and verify emission reduction from the Afam VI power plant under United Nations Framework Convention on Climate (UNFCCC) CDM mechanism.

The project provides reliable electricity as well as reduces emissions by about 600,000 tons of CO2 per year.

Carbon Limit Nigeria worked with the Lagos State Environmental Protection Agency (LASEPA) on an innovative project that would convert sawdust into biofuels that would replace fossil fuels in certain industrial facilities. The view is to expand the scope of the project to all sawmills in the state.

CLN worked as a consultant to the Organisation for Economic Co-operation and Development (an intergovernmental organisation with 38 member countries), executing an energy study to review energy access in Sub-Saharan Africa (SSA). The study aimed to review the energy access; electricity and access to clean cooking in the SSA countries

CLN worked with the German government (BGR) on an energy study in Cameroon and Algeria. The study focuses on assessing the status of gas flaring in the selected countries, regulations and policies that support the achievement of flare reduction in the country and options to reduce flaring in line with achieving the countries’ Nationally Determined Contribution (climate plan) objectives.

CLN is currently working along with sister companies in Norway (ICA-Finance AS and CL AS) for national and indigenous oil and gas companies to identify and assess projects that could be developed to achieve certified carbon emission reduction (carbon credit).

The objectives of these projects are to monetise the carbon credits achieved from these projects under the current European Union fuel quality directive. Emission reductions achieved from the projects will be sold to countries in the European Union that seek to meet their GHG emission reduction targets.

CLN worked on developing a climate strategy for the Nigeria National Petroleum Company (NNPC) Renewable Energy Division.

Also worked with the division to determine the oil and gas sector’s Nationally Determined Contribution under the Paris Agreement which Nigeria is a signatory.

The project focuses on the development of Nationally Determined Contributions (NDC) for the Oil and Gas Sector, GHG inventory, analysis and development of the mitigation-based project, and Carbon management based on international best practices and a robust climate strategy.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy. He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

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