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Carbon-Limits Nigeria (CLN) focuses on Climate Change and Sustainable Development by providing project development and technical consultancy services in these areas. Incorporated in Nigeria and based in Lagos, CLN is a Joint Venture with Carbon Limits AS of Norway, a leader in CDM development in the energy sector, and Nigerian investors with strong knowledge and experience in the domestic economy. It is the leading company in this area in West Africa.

CLN is involved in sectors including upstream energy, electricity, gas and alternative fuels such as biomass. CLN has been particularly active in developing projects that reduces GHG emission reduction under UN Kyoto Protocol (Clean Development Mechanism, CDM), and also in the development of options for utilization of alternative fuel related projects (such as biomass). CLN offers specific and tailored Workshops/Capacity building projects to support private and public institutions; improving their skills and competencies on carbon project development and climate change issues.

ENERGY

Carbon Limits Nigeria is active in the Electricity, Biomass and Gas sectors. It also provides advisory services on energy efficiency, design and monitoring of emission reduction projects for government institutions and private companies.


ELECTRICAL SECTOR


CLN ACTIVITIES:

CLN Worked with a major IOC on an operating IPP (650 MW) project in the Niger Delta on monitoring of the operations and the carbon reduction calculations. This is perhaps the most successful IPP project in terms of consistent operating levels in Nigeria. Over the past few years after the implementation of the project, the project has consistently contributed enormously to the available power in the national grid. CLN has also worked with TOTAL and the Nigerian National Petroleum Company (NNPC) on another CCGT Power Plant, (submitted for CDM registration). CDM has been helpful in increasing the priority, both for public and private stakeholders, for promoting the more efficient CCGT technology in this sector. CLN also works with NERC in determining the GHG emissions in the grid and other government agencies.

GREENING ELECTRICITY:

In the most fundamental way, greening the electrical sector requires increasing the capacity, performance and efficiency of the grid. For the short to mid-term, this implies moving to more efficiency CCGT grid power plants and increasing the overall scope and dependability of the grid sector – reducing absolute reliance on diesel generators and reducing per kWh CO2 emissions in the grid. Such improvements need to be in place before alternative energy can have widespread application.


GAS UTILIZATION


CLN ACTIVITIES:

To date efforts to use of CDM for flare reduction (gas to market) has had some limited success. CLN has done three gas flare CDM projects. One of these projects is among the largest in Africa with almost 2 million CERs generated to date.


CURRENT SITUATION:

According to the World Bank/GGFR, Nigeria flared approximately 14.6bcm of gas in 2010, second only to Russia. More gas is flared in Nigeria than used in power plants. While in decade between 1996-2006, gas flare volumes declined significantly, in the last several years, the volumes flared have been largely stable.

Developing economic solutions to gas flaring face barriers such as the low prices in the domestic gas market and the limited nature of the existing gas transmission infrastructure.

The development of the gas and electrical industry in Nigeria are closely linked in that without the infrastructure to transport the gas to power plants, the power situation will remain severely constrained. And without a sustainable and functioning electrical market, it will not be possible to generate the revenue necessary to allow for gas prices high enough to justify the development of the sector.

INITIATIVES UNDERWAY:

Given its abundant supply, gas is clearly the most viable fuel of choice in the country, as well as the lowest CO2 content among the fossil fuels. The Government actively encourages its use with the most prominent government initiatives underway being the Gas Master Plan of 2008 and the establishment of Gas Aggregator Company in 2010. The Gas Master Plan has the goal is to ensure that gas is transmitted and distributed to all parts of the country.

GREENING THE GAS SECTOR:

Improving the scope and reliability of the gas sector is an important component in limiting GHG emissions. It is interesting that CDM for gas flare reductions has been utilized more by indigenous Nigerian companies than the International Oil Companies.

Both domestic and international incentives are needed to prioritize the use of currently flared gas. The issue of methane emissions, until now largely ignored, has not been addressed. Given the likely low combustion efficiency in flares and the level of maintenance and vandalism of gas transmission and distribution lines, methane emissions could well exceed CO2 emissions from flaring.


BIOMASS


CLN ACTIVITIES:

CLN is working with Lafarge WAPCO in Nigeria to develop the use of biomass in their kilns where tests show that biomass provides a good fuel in the pyro-processing activity. The project involves a supply assessment of the geographical area, the logistics of sourcing as well as collection, processing and transporting to the user facility. While biomass is abundant, locating large quantities of biomass waste that can be collected and transported at a cost competitive with fossil fuels is an ongoing challenge. This project has been submitted for CDM registration.

CLN is also working with Lagos State Environmental Protection Agency (LASEPA) on the waste residue produced by sawmill operations in the Okobaba community in the center of Lagos for use as a biofuel.

CURRENT SITUATION:

Despite abundant biomass resources no commercial market exists for biomass in Nigeria nor are any specific policies or incentives provided for its development.

Biomass resources are substantial and include waste from agricultural crops, culling form plantation crops, byproducts from saw-milling, as well as that produced from urban expansion.

Commercialization is challenging in that infrastructure barriers, largely related to collection and transport costs; and the lack of awareness and initiatives to consider biomass as a valuable energy source. However, a few recent projects currently underway underline the potential importance of this sector.

CLN is specifically working on a prototype biomass/sawdust project in Lagos. For decades sawdust produced by milling at the Okobaba sawmill community has been burnt on site or dumped in the adjacent lagoon – causing both CO2 emissions from the burning and methane emissions from the water disposal. If used as fuel, the value earned could perhaps pay for its collection and transport to users. In addition to the local and global environmental benefits, this project has the potential to create a source of income to the community, which can serve to reduce poverty and increase employment. In 2012, CLN and LASESPA with a grant from NORAD, was able to do the research on the volumes, energy content, and options for its use. The project is still in its development stage and requires a pilot test to be done before it can be implemented on a large scale.

POLICY DEVELOPMENT

CLN ACTIVITIES

Our team of experts has been involved in climate change policy making for over twenty years and thus has worked with many countries to develop climate change policies. CLN is currently working with some state governments assisting public institutions to develop green policies and also offering specific and tailored Workshops/Capacity building projects to support private and public institutions; improving their skills and competencies on green growth and climate change issues.

POLICY INITIATIVES

As effects of Climate change continue to impact on every sector of life, Climate policies are now crucial issue being discussed, developed, amended and implemented by all levels of government in many countries. The United Nations framework on Climate change has encouraged the use of various tools which are put in place to combat climate change. One of such emerging tools which becomes prominent after the Conference of Parties (COP) in Paris in 2015 is the National Determined Contribution (NDC). NDC is a voluntary mitigation actions by all countries and refers to a set of policies and actions that countries undertake as part of a commitment to reduce greenhouse gas emissions. The term recognizes that different countries may take different nationally appropriate action on the basis of equity and in accordance with common but differentiated responsibilities and respective capabilities. NDCs can encompass anything from policies, programs, or projects to sectoral or national emission goals.

CSR REPORTING

Corporate social responsibility is defined by the World Business Council as:

… the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

Increasingly companies have taken to quantifying and making public how their business operations and strategies fit into and contribute to sustainable, equitable and environmentally friendly development. While voluntary, CSR has a quantitative aspect of Social accounting is explicitly documented and is often publicized. Many major corporations publish CSR reports to communicate their social and environmental effects of a company’s economic actions on specific stakeholders and to society as a whole. Recently the concept as to who are stakeholders and the policy implications has become more prominent.

While many of the international companies operating in Nigeria are active on a corporate basis in CSR, to date it has not been much utilized in this country (or in developing counties in general). However with the growing international and domestic priority given to green development, CSR is expected to grow in importance.

CLN works with Dr. Paolo D’Anselmi, an internationally recognized expert and author on this topic.

TRANSPORT

Lagos metropolis has the largest population in the nation with unprecedented annual growth of about 6%. The current population of Lagos State stands at 17.5 million and is expected to hit 25 million in 2015 when it becomes the world’s 3rd largest megacity after Tokyo and Mumbai. Although the metropolis has the most extensive road network, the current transport system cannot cope with the ever-growing transport demand. Most sections of the main roads are jammed most of the day and with high level of air pollution far beyond the permissible maximum level. It is common for a one-way trip to work to last more than 3 hours.

CLN is working with some private investors working on rapid mass transit system in Lagos.

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