Introduction
Nations across the world have increasingly adopted climate change laws over the last two decades. This is not only attributable to the dynamism in international climate treaties and negotiations but also a growing appreciation of the crucial role that national laws and policy measures play.Nigeria, a signatory to various global climate agreements like the Paris Agreement, actively participated in the United Nations Conference of Parties (COP) 26, where it submitted an updated Nationally Determined Contribution (NDC)1 to the United Nations Framework Convention on Climate Change (UNFCCC) outlining its strategies for reducing greenhouse gas emissions. During this conference, Nigeria made a significant commitment to2 achieve net-zero emissions by 2060. Subsequently, the Climate Change Act, 2021, was enacted, marking a pivotal legislative step toward combating climate change and reducing excessive greenhouse gas emissions.
Despite the passing of the Climate Change Act (CCA) in 2021, its level of implementation remains unclear, particularly in relation to the involvement and obligations of oil and gas entities. Thus, this article seeks to assess the provisions for the implementation of the CCA and examines all specific compliance obligations on oil and gas operators with respect to addressing climate change issues prevalent in and around the nation.
Brief Outline of International Climate Change Regulations
- Montreal Protocol 1987 and Kigali Amendment
Originally adopted in 1987, the Montreal Protocol was not structured to directly tackle climate change. This regulatory accord became the model for future regulatory accords/treaties on climate change. The Montreal Protocol was eventually ratified by all nation states, requiring them to phase out the production and usage of green-house substances (such as chlorofluorocarbons (CFCs)) that deplete the ozone layer3. Also, by the Kigali Amendment in 2016, the Protocol's mandate was extended to additionally phase out hydrofluorocarbons (HFCs), which are also potent greenhouse gases used in air conditioning and refrigeration, which are not ozone-depleting but contribute significantly to global warming.
- United Nations Framework Convention on Climate Change (UNFCCC) 1992
Ratified by 197 countries, including the United States, the UNFCCC4 landmark accord was the first global treaty to explicitly address climate change. Specifically, the UNFCCC serves as the foundation for global climate negotiations and agreements, with its primary objective being to stabilize greenhouse gas concentrations in the atmosphere to prevent dangerous interference with the climate system. Notably, it established an annual forum, known as the Conference of the Parties (COP), for international discussions aimed at stabilizing the concentration of greenhouse gasesin the atmosphere. These meetings laid the groundwork for the Kyoto Protocol and the Paris Agreement respectively.
- Kyoto Protocol 2005
Adopted in 1997 and entering into force in 2005, the Kyoto Protocol5 is an extension of the UNFCCC. It legally binds developed countries to emission reduction targets. The Protocol introduced mechanisms like the Clean Development Mechanism (CDM), Joint Implementations (JI), and Emissions Trading to help countries meet their targets. The first commitment period was from 2008 to 2012, and the second commitment period, known as the Doha Amendment, runs from 2013 to 2020.
- Paris Agreement 2015
The Paris Agreement6, adopted in 2015 and effective from 2016, has been cited to be one of the most significant global climate treaties to date, requiring all countries to make/set emissions-reduction pledges. The agreement aims to limit global warming to well below two (2) degrees Celsius above pre-industrial levels, with efforts to limit the increase to 1.5 degrees Celsius. Unlike the Kyoto Protocol, it requires all countries, not just developed countries, to submit Nationally Determined Contributions (NDCs) outlining their climate goals/ actions towards becoming carbon neutral (net-zero). The Agreement places significant emphasis on transparency, adaptation, and financial support for developing nations.
- Conference of Parties (COP) 26 2021
COP26, the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC), took place in Glasgow, Scotland in 2021, and has been described as one of the most effective treaties on climate change and the adoption of renewable energy across the world. The conference brought together representatives from about 200 countries to address and negotiate global actions to combat climate change. Key objectives of COP26 included:
- Strengthening Climate Ambitions: Countries were urged to submit more ambitious Nationally Determined Contributions (NDCs) to reduce greenhouse gas emissions and limit global warming to well below 2 degrees Celsius
- Financial Commitments: Developed countries were encouraged to fulfill their pledge of providing $100 billion annually in climate finance to support developing nations in their mitigation and adaptation efforts
- Coal and Fossil Fuels: There was a strong emphasis on phasing out coal usage and reducing fossil fuel subsidies to accelerate the transition to cleaner energy sources
- Carbon Markets: Progress was made on Article 6 of the Paris Agreement, which provides for the rules for international carbon markets and emissions trading
- Establishment of the Green Grids Initiative (One Sun, One World, One Grid (GGI-OSOWOG): the green grids initiative was launched by the governments of Italy and the U.K, aiming to connect renewable energy grids across borders to facilitate a faster transition to the use of renewable energy.
Footnotes
1 https://climatechange.gov.ng/wp-content/uploads/2021/08/NDC_File-Amended _11222.pdf
2 https://treaties.un.org/doc/publication/unts/volume%201522/volume-1522-i-26369 english.pdf
3 https://treaties.un.org/doc/publication/unts/volume%201522/volume-1522-i-26369 english.pdf
5 https://unfccc.int/resource/docs/convkp/kpeng.pdf
6 https://sustainabledevelopment.un.org/frameworks/parisagreement
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