INTRODUCTION
The news about climate change and its devastating impacts is everywhere and across the globe. Severe storms, flooding, building collapses, earthquakes, heatwaves, droughts, rising sea levels, soot, food scarcity, human displacement, insecurity, and outbreak of strange diseases are now part of the bad news we see and hear every day from both the conventional and social media. All these are caused by carbon dioxides and other greenhouse gases we emit into the atmosphere from our business-as-usual activities such as oil and gas production, transportation, energy production and consumption, agricultural and industrial activities, and waste management.
This article provides some basic insights on climate change and carbon emissions as well as how to take a credible climate action and save our planet from climate crisis through green development and green lifestyle. The article also sheds light on carbon credit, carbon market, and carbon offset as well as the legal and policy frameworks that support climate action in Nigeria. Finally, the article discusses how to invest in carbon offset projects and reap the long-term financial and economic benefits of carbon markets and carbon credit.
1. Climate Change and Greenhouse Gases
1.1 What is Climate Change?
Climate change is the deadliest threat facing humanity today. It is the long-term shifts in the patterns of temperatures and weather conditions largely caused by human activities such as deforestation and burning fossil fuels (oil, gas, and coal) for electricity, transportation, and heat. These human activities release greenhouse gases (GHGs) in the atmosphere, thereby raising earth temperatures and causing global warming. According to a UN report, the earth’s average temperature is now 1.2oC warmer than it was before the industrial revolution in the late 1880s. This means that we are all exposed to great climate risk, which underscores the need for substantial climate actions by all stakeholders.
1.2 What are Greenhouse Gases (GHGs)
GHGs are carbon-related gases that absorb and envelop the sun’s energy and heat, preventing it from escaping into space. These gases, which are measured in tons of carbon dioxide equivalent (or TCo2e), include carbon dioxide, methane, nitrous oxide, and Fluorinated Gases (F-Gases). Globally, an average of around 50 billion metric tons of GHGs are emitted yearly from human activities such as electricity and heat production, transportation, energy production and consumption, agricultural and industrial activities, and waste management.
Carbon dioxide or CO2 is the most significant cause of climate change, accounting for approximately 76% of the total greenhouse gas emissions. The main source of CO2 emission is fossil fuel consumption. Other sources include deforestation (cutting down trees), land clearing for city development or agricultural activities, and soil degradation. Emitted CO2 remains in the atmosphere for thousands of years.
Methane or CH4 accounts for about 18% of total greenhouse gas emissions. CH4 is a very strong but short-lived GHG. While it stays in the atmosphere for only around 10 years, its warming impact is much higher compared to CO2. Agricultural activities (such as livestock and rice production) are the highest contributor to CH4 emissions, followed by fugitive emissions (unintentional gas leaks from oil and gas extraction, transportation etc.), while waste, fuel combustion, and industrial activities are among the least contributors.
Nitrous Oxide or N2O accounts for approximately 4% of total greenhouse gas emissions. It has a much higher warming potential than CO2 but stays in the climate system for an average of 121 years. Hence, N2O is more persistent than CH4 but less persistent than CO2. Most N2O emissions result from agricultural activities. Industrial activities, solid waste, land use, fugitive emissions, and fuel combustion contribute less significantly to N2O emissions.
F-gases (such as hydrofluorocarbons, sulfur hexafluoride, perfluorocarbons, and nitrogen trifluoride) are typically emitted in smaller quantities compared to other gases, accounting for only 2% of total greenhouse gas emissions. However, they are the most potent greenhouse gases and trap much more heat than other greenhouse gases including CO2. Also, they stay from thousands to tens of thousands of years in the atmosphere. The emission of F-gases results mainly from industrial processes, refrigeration, and the consumption of consumer products.
1.3 Effects of Climate Change
We are already experiencing the deadly impacts of GHG emissions, which range from natural (heath waves, increased droughts, severe storms and flooding etc.) to human (health risks, poverty, displacements, deaths and life without future). These impacts also manifest in several ways and in varying intensities across different geographical locations and income grouping. Although Africa contributes insignificantly to the global GHG emissions, it is among the most significantly affected due to its low funding capacity and low investment in critical infrastructures.
1.4 Solutions to Climate Change
Climate change is caused by human activities and hence can be effectively combated through human activities. It is just a matter of being a climate enthusiast and adopting the green culture. As an individual, the starting point is to reduce your carbon footprint, which is the amount of carbon you emit into the atmosphere through your daily socio-economic activities. Reducing your carbon footprint means:
Switching to Clean and Renewable Energy: The use of clean and green energy sources at homes and offices is still low in Africa. End your dependence on petroleum-based power generation and use renewable energy sources such as solar, wind, and hydroelectric energy. Unlike fossil fuel, these energy sources have cost-saving advantage in the long run and do not harm the environment.
Planting Trees: Tree planting is a significant carbon action and a natural way of removing carbon from the atmosphere. Trees absorb emitted carbon dioxide from the atmosphere but release oxygen for human consumption through the process of photosynthesis. Trees also serve as carbon sinks (carbon reservoir) that capture carbon and keep it away from the atmosphere. This process is called carbon sequestration. Trees can also be integrated into conventional farming to form agroforestry, which increases the productivity of land resources and provides income diversity for farmers.
Green Transportation (EVs, Walking, and Cycling): Transportation is an important factor in carbon emissions. However, research shows that EVs contribute much lower carbon emissions than conventional fuel-powered vehicles. Hence, owning or using an electric-powered vehicle is a significant carbon action required to win the fight against climate change.
Also, personal mobility means such as walking and cycling are natural green activities that can significantly reduce your carbon footprint as well as improve your overall physical and mental wellbeing. They are also the cheapest mode of transportation.
Building with Green Cements: Green cement is produced from industrial waste using energy-efficient and low carbon production methods. It is stronger, less expensive, more durable, and more environmentally friendly than normal cement. Research shows that green cement reduces the carbon footprint by 40%, while the normal cement (Portland cement) contributes about 8% of global carbon emissions. Hence, using green cement is a significant carbon action towards achieving the global net zero emission target.
Investing in Green Projects: Green projects are carbon-free projects that are designed to offset carbon emissions and earn carbon credits. Research shows that these projects, not only provide sustainable liquidity, income and cashflows for investors, but also, make highly significant positive impact in both social and environmental dimensions of sustainable development. Hence, investing in green or carbon projects is a significant carbon action.
2. Real Estate as a Platform for Carbon Action
The African real estate is still evolving but largely contributes to the increasing carbon emissions in the continent. Currently, real estate accounts for nearly 40% of global greenhouse gas emissions. However, the sector also has great green investment potential and offers a robust platform for carbon action. Hence, taking the fight against carbon emissions to real estate through the development of green cities and agroforestry systems represents a credible action towards the global net zero carbon emissions target.
2.1 Green City Development
Green city development simply means incorporating green and smart features into city development. Green cities are designed to satisfy almost all the sustainable development goals (SDGs) of the United Nations. Such cities are livable, secure, safe, inclusive, well planned, and offer equal opportunity of goods and services for all residents and visitors. While homes and offices are built with eco-friendly materials such as green cement and green concrete, electricity supply is based on renewable energy sources such as solar and wind. Green transportation (such as electric vehicles, walking, and cycling) is the only means of internal mobility in green cities. Hence, green city development promotes the green lifestyle and represents a direct response to the global call for action against carbon emissions and climate change.
2.2 Agroforestry Systems
Agroforestry is the deliberate integration of trees into crop and animal farming systems to increase the production and productivity of land resources. This integrated system offers several environmental, social, and economic benefits. Environmentally, agroforestry serves as a means of carbon offsetting, and hence, a sure way of fighting climate change. Carbon offsetting occurs through carbon sequestration, which is the process of storing carbon in sinks provided by soils and plants. The economic benefits of agroforestry include increased productivity and output per unit area of land, and creation of new agricultural products that lead to financial diversity of farmers. Also, sequestered carbon can be sold as carbon credit in the carbon market for long-term liquidity and cashflows for farmers. Finally, agroforestry requires community engagement in socio-economic activities, thereby guaranteeing social inclusion.
3. Carbon Credit as an Economic Incentive for Carbon Action
3.1 What is Carbon Credit
Carbon credit is a commodity (or financial asset) traded in the carbon markets. It is measured in tons of CO2 equivalent or tCO2e and serves as an incentive to invest in carbon offset projects such as renewable energy (solar farm), electric vehicles, afforestation, and green cement/concretes. These projects are designed to prevent or reduce greenhouse gas emissions in the atmosphere. By holding carbon credits, you are permitted to emit a certain amount of carbon into the atmosphere. You can also sell your carbon credits to entities who require them to offset their carbon emissions. Hence, carbon credits provide additional and sustainable cashflows for green investors.
3.2 Carbon Markets
A carbon market is a financial market where the price of carbon credit is determined. Both governments and private entities participate and trade in carbon markets. As in other financial or commodity markets, carbon prices are determined based on demand and supply. There are two distinct carbon markets: namely, regulated and voluntary carbon markets. Regulated or compliance markets typically operate under the Cap-and-Trade trading system in which the government issues a certain amount of carbon allowance or credits to companies to limit their emission levels. Companies that exceed their emission limits are taxed, while companies that do not reach their limits can keep the unused credits for future needs or sell them to other entities. In the voluntary markets, however, there is no direct government involvement or regulatory oversight as companies purchase carbon credits to offset their carbon emissions on a voluntary basis. Also, due to the absence of direct government involvement, carbon credits traded in the voluntary market are of lower quality and carbon prices are much lower compared to the compliance markets.
3.3 Carbon Footprints
We are all involved in the business of carbon emissions through aur daily activities. However, there is an indicator that helps us to determine the extent to which we are contributing to the global greenhouse gas emissions and climate change. This indicator is called carbon footprint. By definition, a carbon footprint is an estimate of the total amount of greenhouse gas emissions that are linked directly or indirectly individuals, companies, and institutions. If your carbon footprint is high, it means that you are part of the problem and must change your lifestyle to save our planet and our economy from the devastating effects of climate change. However, a low carbon footprint means that you are emitting less carbon into the atmosphere and hence are required to take more carbon actions to further reduce your emissions level. You can calculate your carbon footprint by utilizing a carbon footprint calculator, which is freely available in several online carbon platforms.
3.4 PH GREEN CITY as a Carbon Offset Project
Carbon offset is any activity that reduces your carbon footprint or compensates for carbon emissions elsewhere. Carbon offset projects are designed to reduce both current and future emissions. PH GREEN CITY is a perfect example of a carbon offset project. This novel real estate project hosts several carbon offsetting projects such as solar farms for clean and green energy, green transportation, buildings with green blocks and concrete, agroforestry, and green leisure. These green projects are all designed to earn quality carbon credits that will be traded in the compliance carbon market. Hence, investing in PH GREEN CITY is a significant climate action and implies that you are out to reduce your carbon footprint and reap the long-term economic benefits of carbon markets and carbon credits.
4. Nigeria’s Policy/Legal Framework for Climate Action
Nigeria has made significant progress in the fight against climate change and its deadly impacts. Below are some of the main policy measures and legal strategies adopted so far to back its ambitious climate actions towards achieving both medium-term and long-term climate goals.
4.1 Climate Change Act of 2021
The Climate Change Act was enacted in November 2021. The Act provides a legal and regulatory framework for achieving its long-term climate goals including net-zero GHG emissions target by 2060, green funding, and economic and environmental accountability.
4.2 Nationally Determined Contribution (NDC)
NDC is a climate action plan to reduce national carbon emissions and its deadly impacts in Nigeria. Under the global climate framework (Paris Agreement and United Nations Framework Convention on Climate Change or UNFCCC), every country is required to pursue domestic mitigation measures towards achieving the objectives of its NDC. Nigeria submitted its updated NDC to UNFCCC to UNFCCC in July 2021, which details its ambition to reduce national carbon emissions by 20% relative to the Business-As-Usual by 2030 and by 47% with international backing. The areas of climate action as outlined in the NDC include agriculture, energy, forestry and land use, transport, health, culture and tourism, waste management, and ICT.
4.3 National Council on Climate Change (NCCC)
NCCC was established in 2022 by section 3 of the Climage Change Act of 2021. The Council, which is chaired by the President of the Federal Republic of Nigeria, is the National Designated Authority (NDA) for the fight against climate change and its deadly impacts. It is responsible for policy formulation and implementation in relation to climate change, carbon emission trading mechanism, and green growth towards sustainable economic development. Its specific mandate includes administering the climate change fund, monitoring compliance with the carbon emission reduction target, implementing the National Climate Change Action Plan (NCCAP), and collaborating with the private sector and other stakeholders on all climate response issues.
4.4 Carbon Market Framework
Nigeria is currently working on its plan to develop a carbon market worth $2.5billion. An intergovernmental committee on the national carbon market has already been inaugurated. The market will, among other things, facilitate green investments, carbon emissions reductions, and the trading and exchange of high-quality carbon credits towards achieving the long-term climate goals and sustainable economic development.
Conclusion
Climate change is real. It is caused by carbon emissions from human activities such as deforestation and burning fossil fuels (oil, gas, and coal) for electricity, transportation, and heat. These activities release greenhouse gases (GHGs) into the atmosphere, thereby raising earth temperatures and causing climate crisis. We are already experiencing climate crises in the form of severe storms, flooding, building collapses, earthquakes, heatwaves, droughts, rising sea levels, soot, food scarcity, human displacement, insecurity, and outbreak of strange diseases. However, the fight against climate change is winnable and requires only credible climate action such as planting trees, using electric vehicles and renewable energy sources, and building with green cement and concrete. Also, credible climate action such as investing in PH GREEN CITY carbon offset project earns you carbon credit, which is a financial instrument that provides long-term economic and financial benefit to the holder.