By YANGE IKYAA
The proposal by the European Commission (EC) to label energy sources, including natural gas and nuclear energy, as green will benefit Nigeria economically.
This is because Nigeria is blessed with a lot of gas, currently amounting to 206 trillion cubic feet in proven reserves. The volume of gas under review is often called accidental discoveries, as it was mostly found by accident while looking for oil in the country.
The EC plans to include these energy sources in its taxonomy regulation, easing the pathway for a smoother energy transition in the European Union (EU), which is a major commercial destination for natural gas from Nigeria.
The proposal by the EC is based on the energy transition plans of member countries that included natural gas and nuclear power in their net-zero transition plans. However, member countries of the EC are not united in the proposal.
Countries like Spain, Germany and Austria have opposed the proposal and even threatened legal action against the Commission. On the other hand, France, the Czech Republic, and Luxembourg have agreed on the need for these energy sources to feature in the energy transition.
“Taking account of scientific advice and current technological progress, as well as varying transition challenges across the member states, the commission considers there is a role for natural gas and nuclear as a means to facilitate the transition towards a predominantly renewable-based future,” said EC in a statement.”
The EU had, in 2021, committed to defunding fossil projects at the Conference of Parties (COP26) event in Glasgow, Scotland. In addition, 25 countries and finance institutions, including the European Union, had committed to defunding overseas fossil fuel projects by 2022 in the transition to cleaner energy sources.
During the COP26 event in Glasgow 2021, African governments were united in their call for a just and fair energy transition that considers Africa’s need for industrialization using its fossil resources.
Despite being blessed with a vast array of fossil resources, Africa is the continent with the highest number of people without access to energy, with Nigeria topping the charts as the country with the largest number of people without energy access.
With a dependency on fossil fuels for development, the push for defunding fossil development will impact the continent negatively, which makes the current position of the EC a favourable one to Nigeria.
Africa stands to benefit from the reclassification if the new proposal applies to the countries outside the EU. Approving the reclassification means Africa can access critical finance for large scale fossil projects as long as these projects fall within the specified emissions category.