The Nigerian Sovereign Investment Authority (NSIA) and the Swiss commodity trading firm Vitol have formed a joint venture to engage in carbon avoidance and abatement initiatives. According to the authority, the entities are close to making a final investment decision on the first projects.
An initial $50 million has been committed to attracting new investors as the partners develop the project pipeline.
The joint venture will commence with projects in Nigeria, partnering with local firms for carbon offsetting in line with the UN Sustainable Development Goals. Investments will focus on various sectors, including infrastructure, agriculture, and energy.
The joint venture will seek to mobilize capital from funding partners for the voluntary carbon market in support of the efforts of the Nigerian government toward a more equitable energy transition for Africa.
The initial investment will go toward a residential energy efficiency initiative, which will include enhanced clean cooking and water filtering systems.
According to the announcement, the project’s initial scope is to install up to 200,000 devices.
