COP28 and its impact on Nigeria’s economy (2)

Confronting the realities of global warming by corporate resolution in  every economy of the world, and sending all stakeholders in the global energy business in the right direction, is a starting point in the finishing stages for the implementation of the United Nations’ climate action policy that will effectively reverse the status quo of the global scourge. This is in appreciating the fact that international politics subtly influences certain critical policy decisions that are made; and how those decisions are taken or implemented by countries involved in the act, and who are publicly recognised as heavy emitters of the greenhouse gases (GHGs). Their roles inadvertently pose the global challenges of efficient management of such decisions. Invariably, it waters down the effective implementation of a time-bound policy like this COP28 deal, by not being actualized at set target, considering (most especially) the sensitivity of this climatic threat on man’s environmental sustainable existence. The essence of all these efforts being made globally at the annual climate summits sponsored by the United Nations is for the world economies to once again, become carbon-free at target time in all energy engagements (inclusive of production and utilisation from every known source). Such effort, no doubt, is ultimately expected to shift positively on certain global economic dynamics that impact food security, global health challenges and the numerous other social factors that are driven by this worsening climate crisis.

One striking issue that bothers most concerned people regarding the aspect of heavy emissions of GHGs from production and utilisation of fossil fuels’ sources of energy by the economies that are significantly responsible for this global warming and the ensuing environmental challenges, is the issue of non-compliance to global energy transition policy agenda, or application of the expected measures that focus on carbon balancing (either as feasible or practical solutions that could nullify completely, or reduce the excessive generation of the GHGs) through strict applications of the diverse forms of carbon tax policy, carbon capture and storage technology. They continue to act adamant, uncontrollable and liberally turn deaf ears to heavy emission pervasive practices, in spite of the catastrophic threat to man’s continuing existence on earth. For whatever reason, this should not be taken as a yardstick by poorer nations of the world but as an opportunity to persevere and rightly key into the globally agreed strategies (as much as possible) towards this collective fight against global warming. This opinion however, does not in any form stop the low carbon emission economies that are poor, and that are equally endowed with rich hydrocarbon natural resources, from exploiting such divinely available comparative advantages for economic gains through exploration and production; by optimising their opportunities for foreign exchange earnings through exports at their respective upstream subsectors, and at the same time service their domestic energy needs at the downstream. This is a logically constructive and economically viable posture in running a progressive economy, on the basis that their respective contributions to the carbon emissions impact are at minimal levels and insignificant, especially if they are able to technologically apply the strategy of “maximum energy, minimum emissions”. Nigeria clearly belongs to this class and falls into the bracket of such economies being referred to in this piece. The board chairman of NNPC Limited, Pius Akinyelure, recently lent his voice as well to encourage local production of refined products, towards the economic growth and development of the country.

It is on this note that oil exporting countries, among the poorer nations of the world, are urged to “make hay, while the sun shines”, by aggressively exploiting the situation at hand to grow their economies, as long as the COP28 deal still permits. However, as technology keeps evolving along the global energy transition programme value chain, with the likes of new inventions and introduction of voltaic powered vehicles and machinery, in this imminent fourth industrial age of artificial intelligence (AI), everyone is urged to join in these competitively evolving technological innovations because change is constant. The World Bank, in line with the school of thought on Clean Energy programme, has selected four African countries (Tanzania, Rwanda, Somalia and Sao Tome and Principe), on a pilot to test a programme that is expected to help up to 100 million Africans/people across 20 countries within the sub-Saharan Africa (SSA) by 2030; at an investment cost of $15 billion. It is a programme aimed at enhancing sustainable and clean energy access within SSA. It is a programme called “Accelerating Sustainable and Clean Energy Access Transformation” (Ascent) slated over the following seven years that shall expand to 20 nations in Africa. Such energy programmes within Africa are welcomed, at this critical moment of the climate action war.

In closing this piece, let me recall the words of the World Bank President, Ajay Banga, who said, about Ascent:“We know it won’t solve the problem of access to power for the entire continent since there are more than 600 million Africans facing the problem. But we see it as a start and also a platform to draw more interest among partners to also join the cause through similar investments”.

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