The International Finance Corporation (IFC) and the World Bank have begun working with the Nigerian government to develop a domestic market for carbon capture, utilization, and storage for industrial emissions, an area that could help Nigeria meet its emissions targets and accelerate the energy transition.
The project will result in a national atlas of CO2 emissions sources and prospective subsurface sequestration sites. IFC will collaborate with the government to identify the most potential industries and private enterprises for piloting novel carbon capture, use, and storage technologies.
Parallel to this, the World Bank will work with the Nigerian government to develop policies and regulations that will assist the local CCUS business reach international standards while also accelerating the adoption of the technology. The project is supported by the World Bank’s Carbon Capture and Storage Trust Fund, which is part of the Energy Sector Management Assistance Program (ESMAP). The Governments of the United Kingdom and Norway contribute to the Trust Fund
“The Federal Government, through the Office of the Vice President, is excited to collaborate with the World Bank Group to develop and implement Carbon Capture, Utilization, and Storage (CCUS) as part of the country’s pathways to accelerate the energy transition by 2060,” the Office of the Vice President of the Federal Government of Nigeria stated.
“The country believes that with the World Bank Group’s support and partnership with Nigeria, it’s only a matter of time before CCUS becomes an important force in global technology, innovation policy for climate action, and deep decarbonization, especially for hard-to-abate-sectors.”
“If we can combine carbon capture with a decisive push on renewables, countries like Nigeria could be poised for a real breakthrough,” said Vivek Pathak, IFC’s Global Head for Climate Change. “For developing countries, imagine what a game-changer a financially-viable carbon capture industry could be.”
In 2021, Nigeria’s updated Nationally Determined Contribution (NDC) set a target of at least 20% and up to 47% reduction of greenhouse gases compared to business as usual by 2030. Capturing carbon, which could help reduce emissions across a range of sectors, has become a key element of the government’s climate plan.
In addition, the West African country is likely to have significant space for geological carbon storage, in part due to the widespread availability of depleted oil and gas fields. Their potential will be mapped using government and industry data. The project will also use geological surveys and closely examine the issue of obtaining the rights to conduct the sequestration.
IFC will work closely with local industries throughout the process. The engagement will not support the development of carbon capture, utilization, and storage in association with fossil fuel production.
