The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has disclosed plans to develop a regulatory framework for carbon-pricing systems.
It said this will make businesses pay for their emissions and incentivize emission reductions through carbon credits.
The Commission’s Chief Executive, Engr. Gbenga Komolafe made the disclosure at the just concluded fourth edition of the Nigerian Oil and Gas Opportunity Fair (NOGOF 2023) themed: “The Oil and Gas Industry-Catalyst and Fuel for the Industrialization of Nigeria.”
According to him, a new Department called “Energy Transition and Carbon Monetisation” has been created in the Commission to coordinate the drive towards energy transition in the Nigeria oil and gas sector.
He stated that the new department will drive the focused implementation of a robust regulatory framework for decarbonisation of upstream operations, introduce clean mechanisms in field development, mitigate the impact of the energy transition, and ensure sustained investments in Upstream operations whilst improving the environmental credentials of oil and gas.
“We hope that in months to come, we should be able to share the vital lessons from the Nigerian transition success story with the global community.
“… the Commission since inception has concluded and commenced various initiatives and programs to create investment opportunities and enhance the development of the upstream oil and gas industry in Nigeria,” it said.
He said despite the global clamour for decarbonization and energy transition, oil and gas remain relevant in the global energy mix to guarantee energy security for our teaming population.
Also, he said the Commission is leveraging the Petroleum Industry Act (PIA), 2021, to enhance the business landscape in Nigeria’s petroleum industry, providing a more transparent, efficient, and investment-friendly regulatory framework.