EU’s $1.35Bn Fund To Stimulate Nigeria’s Renewable Energy Project

Ken Okeke

The European Union (EU) has launched a $1.35 billion Nigerian Green Energy Project, the Team Europe Initiative (TEI).

The project initiative aims at stimulating a sustainable climate-smart agriculture and renewable energy and create jobs for economic growth as well as help Nigeria’s diversification efforts.

The EU Ambassador to Nigeria and Economic Community of West African States (ECOWAS), Samuela Isopi, stated this during the unveiling of the project at the 8th EU-Nigeria Business Forum themed Nigeria and the New Economy which was held in Lagos.

Isopi, who applauded Nigeria’s resilience in the face of the current global challenges, said the initiative will try to assist Nigeria achieve low carbon, resource efficient and climate resilient development, job creation for youths and economic growth, focusing on climate-smart agriculture, circular and digital economy and improving the competitive advantage of Nigeria’s agriculture.

She revealed that the members of the TEI Green Economy Project include Denmark, France, Germany and the Netherlands, adding that 60 different projects will be executed across the agricultural and energy sectors value chain.

Isopi stated that work was already underway and will continue through 2027. She further assured stakeholders that the EU will continue to support the Nigerian government in the implementation of its economic diversification policies and new partnerships with the private sector.

“In line with the EU’s Green Deal, the Green Economy Initiative will support the Nigerian government’s efforts to diversify the economy by combining support to enhance access to renewable energy for productive uses and boosting the development of the agricultural sector while integrating circular economy principles in the development models. “Collectively, the actions will help Nigeria attain its SDGs and put the country on a sustainable development path.

The TEI is expected to boost Nigeria’s efforts in implementing its climate agendas. Nigeria developed its Nationally Determined Contribution (NDC) in 2015 towards the ratification of the Paris Agreement on Climate Change. It is part of many policies that made up the 2021 – 2030 National Climate Change Policy for Nigeria.

According to the Federal Ministry of Environment Department of Climate Change, Nigeria intends to reduce its greenhouse gas (GHG) emissions intensity of GDP by 20 per cent by 2030 relative to the emissions intensity of GDP in the base period 2010 to 2014 on an unconditional basis as well as a further 45 per cent on a conditional basis consequent upon receiving climate finance, technology transfer and capacity building from the developed countries.

Commending the initiative, the Minister of Agriculture and Rural Development, Dr Mohammad Abubakar, said that the agricultural sector had the largest potential to diversify the economy and provide the broad-based growth necessary for development as a “new growth engine.”

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