"Nigeria to launch Carbon Tax System to reduce emissions and raise revenue"

" Nigeria to launch Carbon Tax System to reduce emissions and raise revenue \r\nThe Nigerian Government announced the launch of a Carbon Tax policy, to reduce overall carbon or greenhouse gas emissions and raise revenue generation in the country.\r\n\r\nThis was\u00a0 disclosed by \u00a0the Director-General of the National Council on Climate Change (NCCC), Salisu Dahiru, on Monday when he briefed State House correspondents in Abuja.\r\n\r\nHe added that the carbon tax policy is in line with the recently approved Energy Transition Plan, citing President Buhari\u2019s approval of the\u00a0 Energy Transition Plan, to be driven by the NCCC, in accordance with the Climate Change Act 2021.\r\n\r\n Carbon Tax:\u00a0 He noted that the agency is to develop a framework for a carbon tax system in Nigeria and will also look at where projects are being implemented in the country, he said: \u201cThat is to develop a framework for a carbon tax system in Nigeria. It will also look at where projects are being implemented in the country. These projects are capable of reducing overall carbon or greenhouse gas emissions.\r\n\r\n\u201dThe harvest of these emissions reduction is normally contained in what we call an emissions reduction certificate, which can be translated into carbon credit, and then sold to potential buyers within the country and outside.\u201d\r\n\r\n Framework: \u00a0He added the policy will be developed by the Council and will work with the Secretariat to develop the framework for carbon trading, and also to develop the framework for establishing the climate change fund for Nigeria.\r\n\r\nThis would serve as the main source of revenue and inflow of funds to be used for running the council, which would be used to undertake projects to help Nigeria fulfil all its obligations under the nationally determined contributions, as well as under the net zero target of 2016.\r\n\r\n\u201cThe President also endorsed the Council as the Designated National Authority for the United Nations Framework Convention on Climate Change (UNFCCC) and the DG, NCCC as the UNFCCC National Focal Point, in line with the Climate Change Act 2021.\u201d\r\n\r\n Gas Flaring: \u00a0Dahuri added that the Energy Transition Plan, which is the first among many African countries, is predicated on the use of natural gas as the transition foil for Nigeria as the transition energy source.\r\n\r\n\u201dWe know that what has been flared, is actually natural gas. So, we also know that one of the added advantages that the energy transition plan is going to have is to help to close the energy or power or electricity gap that we are experiencing in the country.\r\n\r\n\u201cWe are going to use the energy transition plan as the main launchpad for capturing the gas needed. If you take the population of Nigeria, which is over 200 million, and we are already experiencing shortages in terms of electricity, and utilizing this gas for even domestic use alone is something that is going to be a big positive. \u201cSo, the government is pursuing the implementation of this ETP as a very important project that will have multiple benefits, including reducing the energy gap,\" he remarked.\r\n\r\nA carbon tax\u00a0 is a fee imposed \u00a0on the burning of carbon-based fuels (coal, oil, gas). A carbon tax is a way \u2014 the only way, really \u2014 to have users of carbon fuels pay for the climate damage caused by releasing carbon dioxide into the atmosphere.\r\n\r\nIt is a market-based alternative that helps the government reduce the carbon footprint and also allows them to make money as a government when there is a breach of this solemn oath to stay in check. In Nigeria, The Carbon Tax Act came into force on 1 June 2019. The carbon tax was designed to apply to direct emissions in the following categories as specified in the National Greenhouse Gas Emission Reporting Regulations."

"Nigeria to launch Carbon Tax System to reduce emissions and raise revenue"

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