Washington, DC, February 10, 2022 – The International Finance Corporation (IFC) and the World Bank have begun to work with the Government of Nigeria to develop a domestic market for carbon capture, utilization, and storage for industrial emissions - an area that could accelerate the energy transition and help Nigeria reach its emissions targets.
The initiative will produce a nationwide atlas of CO2 emissions sources and potential sites for underground sequestration. IFC will work with the government to identify the most promising sectors and private companies that can pilot new technologies for capturing, using, and storing carbon.
In parallel, the World Bank will collaborate with the Nigerian Government to outline policies and regulations that can accelerate the technologies' uptake while helping the local CCUS industry meet international standards. The project is funded by the World Bank's CCS Trust Fund under the Energy Sector Management Assistance Program (ESMAP). The Trust Fund is supported by the Governments of the United Kingdom and Norway.
"The Federal Government, through the Office of the Vice President, is excited to work with the World Bank Group towards developing and implementing Carbon Capture, Utilisation, and Storage (CCUS) as part of the country's pathways to accelerate energy transition by 2060," said the Office of the Vice President of the Federal Government of Nigeria.
"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.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.