Carbon Limits Nigeria (CLN) has been a pioneering force in Nigeria’s carbon market for 15 years, helping the country transition towards a low-carbon economy. Established in 2010 as a joint venture between Nigerian partners and Carbon Limits AS of Norway, CLN offers advisory services and financial support aimed at reducing emissions across Nigeria and Sub-Saharan Africa.
The company’s CEO, Heine Melkevik, emphasizes CLN’s commitment to implementing real-world solutions on the ground, not just offering consultancy. As the climate finance market expands, CLN navigates this space with expertise, particularly in Nigeria, where the economy’s rapid growth and major industries provide a fertile ground for carbon market opportunities.
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Nigeria’s carbon market is still in its infancy, but the 2021 Climate Change Act has laid the groundwork for a low-carbon and climate-resilient economy.
CLN has established itself as a leader in this emerging market, securing over 70% of the carbon credits for various projects within the country. Their collaborations with major players like NNPC, Shell, and TotalEnergies, as well as smaller entities, underscore their impact. A notable example of their innovative work is the sawdust-to-fuel initiative in Lagos State.
CLN’s partnership with ICA-Finance AS, a climate investment firm, has bolstered its ability to deliver impactful projects and connect with global carbon credit markets, creating mutually beneficial outcomes for both domestic and international stakeholders.
However, as CLN’s Chief Technical Officer James Ogunleye points out, while Nigeria is developing a carbon market framework, it is still not fully defined. He highlights Ghana as a successful example of using Article 6 of the Paris Agreement to build partnerships for carbon offset projects, suggesting Nigeria could follow a similar path.
Despite challenges such as bureaucratic complexities, CLN remains optimistic about the future of Nigeria’s carbon market. Melkevik notes that increasing awareness of climate change and the government’s push for sustainability create a favorable environment for CLN’s business, with the potential for Nigeria to emerge as a global leader in combating climate change.
