5 notable things from Nigeria's climate change act

The climate change act provides the legal framework for reducing Nigeria's greenhouse gas emissions and promoting sustainable economic growth. The Act serves as a holistic framework for guiding the country towards achieving net-zero greenhouse gas (GHG) by 2060. The law applies to Ministries, Departments and Agencies (MDAs), private entities and public entities in Nigeria.

The following are the 5 takeaways from the Climate Change Act:

The National Council on Climate Change & Secretariat

The Act establishes the National Council on Climate Change as a body charged with implementing Nigeria's climate change action plan and with the authority to make climate-related policies in Nigeria. The body is responsible for coordinating the implementation of sectoral GHG emission objectives and guidelines and developing a framework for a carbon tax system, including carbon emission trading. The body would mobilize financial resources to promote climate change activities and oversee the fund's administration.

Additionally, the Act established a Secretariat, which will serve as the Council's administrative, scientific, and technical arm. Its role is to advise and support the Council in carrying out its activities and responsibilities.

Nigeria's Natural Capital Account

The Act also empowers the Council to collaborate with the National Bureau of Statistics to establish a Natural Capital Account for Nigeria. The data accumulated from the account will be utilized to develop an action plan and policy formulation consistent with the carbon budget.

Carbon Budget

A carbon budget is the maximum amount of carbon dioxide that a country can emit within a specified period. The Act empowers the Federal Ministry of Environment and the Federal Ministry of Budget and National Planning to set a carbon budget for Nigeria. The carbon budget is pursuant to efforts to keep the global temperature within 2°C. The budget would be reviewed periodically and subject to approval by the Executive Council of the Federation.

Climate Change Fund

The Council will administrate the fund. The fund will be a collection of sums appropriated by the National Assembly to operate the Council, financing from international organizations, carbon tax and emission trading, and other funding sources to be determined by the Council from time to time.

The Nigerian government launched and issued Green Bonds as an innovative means and alternative way of raising climate finance to facilitate and assist Nigeria in meeting its Nationally Determined Contribution (NDC) target. The Green Bonds seeks to raise climate finance to assist national initiatives in vital sectors such as the environment, agriculture, energy, and transportation efficiency.

National Climate Action Plan

The Act directs the Secretariat to develop the Action Plan on a five-year cycle in conjunction with the Federal Ministry of Environment and the Federal Ministry of National Planning. The Action Plan will serve as a framework for identifying activities that will ensure Nigeria's emissions profile is consistent with the carbon budget, for reviewing GHG emission levels and trends, for identifying critical areas of national infrastructure that require climate-proofing, and for prescribing measures and mechanisms for Nigeria to achieve its climate goals.

What next?

Nigeria has made a pragmatic step toward resolving the climate issue and reaching net-zero emissions by 2060 by enacting the Act. The Act would serve as a framework for establishing the country's carbon budget for various sectors. However, the Act may have a detrimental impact on Nigeria's oil and gas income, as the Act's yearly carbon emission reduction targets require organizations in the country to reduce their oil and gas procurement.

The government must ensure the enforcement of the legislation and drive compliance across public entities, private entities, and individuals.