NIGERIAN DESIGNATED NATIONAL AUTHORITY (DNA) An Overview of CDM Implementation in Nigeria Dr. Samuel A. Adejuwon Department of Climate Change Federal Ministry of Environment Nigeria Reiz Continental Hotel, CBD, Abuja 1 November 2012

OUTLINE Background Information Nigerian DNA Specific functions of the DNA Bankable/Prospective areas of CDM projects in Nigeria Steps to Obtain Letter of No Objection Steps to Obtain Letter of Approval Existing CDM projects in Nigeria CDM-PoA’s in Nigeria

Background Information: Nigeria acceded to UNFCCC in 1994 Ratified the Kyoto Protocol in December 2004 Continuously engaged in the elaboration and further negotiations of issues in both treaties.

Establishment of Designated National Authority (DNA) in Nigeria: As mandated by Kyoto Protocol, Nigeria established a CDM Designated National Authority (DNA) in 2006. Federal Ministry of Environment is the National Focal Point for the UNFCCC Department of Climate Change is the National Designated Authority for implementing CDM in Nigeria.

FME collaborates with relevant bodies including: Nigeria National Petroleum Corporation (NNPC) Energy Commission Ministry of Industry National Planning Commission Power Holding Company of Nigeria; and a host of others in all effort to provide a comprehensive institutional framework for CDM and project development, packaging and approval.

Specific Functions of the DNA in Nigeria: Setting regulations for CDM projects evaluation and approval Development of National Action Plan for CDM Implementation Confirmation of Projects eligibility criteria Issuance of Letter of No Objection and Letter of Approval for CDM projects Follow up CDM projects implementation and providing required support for successful project registration and implementation

Sectors for Potential CDM Projects in Nigeria: Industrial production such as cement manufacturing, oil and gas industries; Energy generation such as bio-fuels development, wind energy generation, solar, hydro, biomass, geothermal, methane capture, coal, etc; Integrated waste and compost management, landfills; Sustainable land management practices such as afforestation and reforestation, agro forestry, improved rangeland management, and a host of innumerable others.

Steps to Obtain Letter of No Objection A. Submission of the Project Idea Note (PIN) providing the following info: Project Participants Project description, type, size, location, Avoided/reduced GHG emissions Expected environmental and socio-economic benefits Risks Other relevant information

Cont: B. Site visit, Analysis and Evaluation of the Project: The DNA visits the project site to verify it’s existence Review of the Project Documentation to make sure it fulfills the CDM requirements – reduction of GHG emissions and ensure Sustainable Development in Nigeria Observations, Clarifications, Corrections, etc made if need be. C. Issuance of Letter of No Objection (LNO) or Letter of Approval

Steps to Obtain Letter of No Objection Submission of the Project Idea Note (PIN) providing the following info: Project Participants Project description, type, size, location, Avoided/reduced GHG emissions Expected environmental and socio-economic benefits Risks Other relevant information Issuance of Letter of No Objection (LNO) Site visit, Analysis and Evaluation of the Project: The DNA visits the project site to verify it’s existence Review of the Project Documentation to make sure it fulfills the CDM requirements – reduction of GHG emissions and ensure Sustainable Development in Nigeria Observations, Clarifications, Corrections, etc made if need be.

Steps to Obtain Letter of Approval (LoA) Submit the following documents to the DNA Project Design Document (PDD) Programme of Activities Design Document (PoA-DD) First CDM Programme of Activities - Design Document (CPA-DD) Revised PIN Environmental Impact Assessment (EIA) Analysis and Evaluation of the project file: Review the project documentation to make sure the project fulfills the CDM requirements – reduction in GHG emissions and Sustainable Development in Nigeria If there is need for clarification, it is directed to the project proponent Issuance of letter of Approval (LoA): Final Letter of Approval (LoA) is issued It is directed to whom it may concern

Steps to obtain Letter of Approval Submit the following documents to the DNA Project Design Document (PDD/POA-DD) First CPA Design Document (CPA-DD) Revised PIN Environmental Impact Assessment (EIA) Issuance of letter of Approval (LoA): Final Letter of Approval (LoA) is issued It is directed to whom it may concern Analysis and Evaluation of the project file: Review the project documentation to make sure the project fulfills the CDM requirements – reduction in GHG emissions and Sustainable Development in Nigeria If there is need for clarification, it is directed to the project proponent

Existing CDM Projects in Nigeria: Presently, Nigeria controls a large volume of the total Certified Emission Reduction (CER) Units for Africa. The following are the existing projects and those in the pipeline:

Registered CDM Projects SN Project Annual CERs Date of Reg. 1 Recovery of Associated Gas that would otherwise be flared at Kwale Oil-Gas processing plant, Nigeria 1,496,934 09 Nov. 2006 2 PanOcean Gas Utilization 2,626,735 01 Feb. 2009 3 Efficient Fuel Wood Stoves for Nigeria 31,309 12 Oct. 2009 4 Recovery & Marketing of Gas that would otherwise be flared at the Asuokpu/ Umutu Marginal Field, Nigeria 256,793 16 Oct. 2010 5 Municipal Solid Waste Composting in Ikorodu, Lagos State 281,781 15 Dec. 2010

As at June 2012, there are about 25 projects in the pipeline, consisting of the following: S/N SECTOR NUMBER OF PROJECTS STAGE i. Oil and Gas 10 5 LOA Issued 5 PIN Submitted ii. Cement 1 1 LOA Issued iii. Integrated Waste and Compost 2 1 PIN Submitted iv. Biofuels 5 2 LOA Issued 3 PIN Submitted v. Hydro upgrade vi. Afforestation and reforestation vii. Energy Efficiency (CFL) 3 LOA Issued 2 PIN Submitted

Programme of Activities Prorgamme of Activities

S/N POA NAME Current Status DNA Approval CME 1 African Improved Cooking Stoves At Validation 9 May 2012 Envirofit International Ltd 2 Oando Low Cost LPG Cook Stove Initiative 2012 Oando Plc 3 Distribution of Improved Cook Stoves in Sub Saharan Africa 20 Jul. 2012 C-Quest Capital Malaysia 4 Tough Stuff Solar LED Lamp Project At validation 15 Mar. 2012 Tough Stuff International 5 Proposed Project Solid Waste 10 Oct. 2011 ICIMI Ltd 6 Reduction of Emission fron Non-renewable Fuel from Cooking at Household Level 14 May 2012 Green Development AS 7 EcoProfitable Lighting Nigeria & Sunlighting Nigeria Pin Submitted - Enercap

Conclusion Nigeria has vast potentials for CDM projects across many sectors. Private Sectors/State Governments should take advantage of the opportunities to enable Nigeria become the hub for CDM activities in Africa. Government will continue to provide an enabling environment in support of investments in the carbon market. Government will also continue to build the capacity of various stakeholders towards implementation of CDM projects in Nigeria.

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