Nigeria has endorsed a mechanism that will enable her engage in international emissions trading, under a climate change mitigation package entrenched in the Paris Agreement.
The International Transferred Mitigation Outcome (ITMO) are the new carbon credits designed under the Paris Agreement to support the estimated $16 trillion in climate finance and investment required to effectively tackle climate change.
As the Guidance on Cooperative Approaches referred to in Article 6.2 of the Paris Agreement received its first draft at COP25 in Madrid, Global Environmental Markets (GEM), and Natural Eco Capital on December 11, 2019 signed a memorandum of understanding (MoU) to support the expansion and rapid deployment of GEM’s ITMO Registry technology across Africa.
The MoU was signed by Wayne Sharpe, CEO of Global Environmental Markets (GEM) and its subsidiary Carbon Trade eXchange and Dr. Eugene Itua, CEO of Natural Eco Capital Ltd, a sustainability consultancy firm of Nigerian origin.
Sharpe, who said he was delighted to be working with Natural Eco Capital, noted that GEM’s ITMO Registry has the capacity to register projects, originate and house carbon credit projects and carbon credits originated in any country, and as well transfer them electronically to buyers globally who have accounts in the registry or a linked registry, and/or Over The Counter (OTC) or via Carbon Trade eXchange (CTX) globally.
“It was sensational to have the support of Dr. Itua at COP25 and to see the incredible proactive enthusiasm from the Nigerian delegation, especially the Kaduna State team. They made it clear that Kaduna State wishes to be the first state administrators under the national Nigerian registry. They seem to have multiple projects ready to go,” he said.
On his part, Itua who appeared equally delighted pointed out that African countries recognise the need for National Carbon Registry which will be electronically linked to Carbon Trade Exchange (CTX) to help facilitate international sales for each country consistent with their Nationally Determined Contributions (NDCs) and from a cooperative approach.
Through the GEM’s ITMO Registry, Nigeria and other African countries look forward to a “first transfer”, which is the first international transfer of a mitigation outcome to be authorised for use towards meeting her NDC or for use for other international mitigation purposes, he added.
“The enthusiasm and interest shown at COP25 by the Nigerian Honorable Minister of Environment, Dr. Mohammad Mahmood Abubakar, and the Director of Climate Change Department, Dr. Peter Tarfa, for a National Registry might see Nigeria launch her own ITMO Registry and become one of the first countries in the world to be ready to sell ITMO’s internationally,” Itua said.
Itua and Sharpe along with their teams met with several African nations in Madrid, in the hope that Africa will soon become the leader of global ITMO generation and sales, and subsequently lead the reductions in global emissions necessary under the Paris Agreement.
According to the Draft Text on Matters relating to Article 6 of the Paris Agreement: Guidance on cooperative approaches referred to in Article 6, paragraph 2, of the Paris Agreement Version 1 of 13 December 11:15 hrs, Internationally Transferred Mitigation Outcomes (ITMOs) are:
- Real, verified, and additional;
- Emission reductions and removals, including mitigation co-benefits resulting from adaptation actions and/or economic diversification plans, or the means to achieve them, when internationally transferred;
- Measured in metric tonnes of carbon dioxide equivalent (tCO2 eq) in accordance with the methodologies and metrics assessed by the IPCC and adopted by the CMA or in other non-greenhouse gas metrics determined by participating Parties that are consistent with the nationally determined contributions (NDCs) of the participating Parties;
- From a cooperative approach referred to in Article 6, paragraph 2 of the Paris Agreement (cooperative approach) that involves the international transfer of mitigation outcomes authorised for use towards an NDC pursuant to Article 6, paragraph 3 of the Paris Agreement;
- Generated in respect of or representing mitigation from 2021 onwards; and,
- Mitigation outcomes authorised by a Party for use for international mitigation purposes other than achievement of its NDC or for other purposes determined by the host Party (other international mitigation purposes).
With reports by Environews