NEW REGULATIONS REQUIRING OIL LICENSE APPICANTS TO DEMONSRATE  LAW CARBON EMISSIONS  

1.1.INTRODCUTION  

Climate change is one of the most pressing issues as it threatens not only the health of our planet  but also the future of generations to come.¹ In a bid to combat climate change, new regulations  need to be made in order to transform the oil and gas industry. Companies applying for oil  licenses are now presently required to demonstrate their commitment to low carbon emissions, thereby marking a significant shift towards a more sustainable future.² Nigeria has announced  new policies that will require applicants for oil licenses and permits to demonstrate evidence of  low carbon emissions in order to achieve a successful renewable energy program.³

1.2 IMPORTANCE OF REDUCING CARBON EMISSIONS IN THE OIL AND GAS INDUSTRY  

By rapidly cutting emissions of greenhouse gases, we can lessen the risks of reoccurring  dangerous climate trends. The negative impacts of climate change are being seen across the  globe and more are projected to be seen in the future. Accumulation of greenhouse gases in the  atmosphere from the burning of fossil fuels and deforestation can lead to the heating of the  earth’s surface. This ultimately leads to impacts such as shifting seasons, rising sea-levels,  disappearing Arctic sea-ice and more intense heat waves, etc.⁴

By reducing emissions and encouraging the moving to net zero, councils can help to limit  climate change and reduce the impacts of climate change in their respective regions. This  approach can also unlock a range of benefits for local businesses and communities.⁵ 

1.3 BRIEF OVERVIEW OF NEW REGULATIONS AND NEW REQUIREMENTS FOR  OIL LICENSE APPLICANTS 

January 1, 2025, Nigeria made it a mandatory requirement for all applicants for oil licenses and  permits to demonstrate compliance with low-carbon emission standards and to compulsorily  include a renewable energy program as part of their proposals. The announcement, was made by  Gbenga Komolafe, the chief executive of the Nigerian Upstream Petroleum Regulatory  Commission (NUPRC).⁶

In order to obtain an oil license in Nigeria, applicants must now demonstrate evidence of low  carbon emissions and a renewable energy plan. This new policy aims to reduce the country’s  carbon footprint and promote sustainability in the oil and gas industry.  

In addition to meeting the new requirements, applicants must also demonstrate a range of requirements, including a reduced carbon footprint, cost savings, and an improved public image.⁷

1.4 REGULATIONS AND LAWS IN NIGERIA THAT REQUIRE OIL LICENSE  APPLICANTS TO DEMONSTARTE LAW CARBON EMMISSIONS  

1. Petroleum Industry Act (PIA) 2021. 

2. National Environmental (Climate Change) Regulations, 2011 

3. Nigerian Content Development and Monitoring Board (NCDMB) Guidelines for  Nigerian Content 

4. National Oil Spill Detection and Response Agency (NOSDRA) Regulations

5. Federal Ministry of Environment’s National Climate Change Policy. Etc. 

1.5 BENEFITS OF THE REGULATIONS REQUIRING OIL LICENSE APPLICANTS  TO DEMONSTRATE LOW CARBON EMISSIONS  

The new regulations will not only benefit the environment, it will also positively benefit the  economy as well as the health of individuals. Reduced greenhouse gas emissions will also bring  about the substantial reductions in heart disease, cancer, obesity, diabetes, road deaths and air  pollution. A low-carbon economy promotes the decarbonization of energy, resulting in a  decrease in society’s need for fossil fuels. Significant reductions in carbon pollution will lead to  job increase as well as the increase in the growth of the economy.⁸

1.6 CONCLUSION  

The introduction of new regulations mandating oil license applicants to demonstrate low carbon  emissions is a crucial milestone in Nigeria’s quest in order to achieve a low-carbon economy. By  setting a high standard for environmental responsibility, these regulations will drive innovation,  encourage sustainable practices, and contribute to a cleaner, more environmentally friendly oil  and gas industry. By prioritizing environmental responsibility and reducing greenhouse gas  emissions, Nigeria can mitigate the impacts of climate change, protect the environment, and  ensure a cleaner, healthier future for generations to come. As the industry adapts to these new  requirements, it is essential that stakeholders work together to support a seamless transition and  foster a culture of sustainability in the oil and gas sector.⁹

1. United nations: Peace, dignity and equality on a healthy planet https://www.un.org/en/global-issues/climate change accessed on the 25th of February, 2025. ↩︎
2. Offshore technology : Nigeria requires oil license applicants to demonstrate low carbon emissions https://www.offshore-technology.com/news/nigeria-oil-licence-carbon-emissions/?cf-view accessed on the 25th  of February, 2025. ↩︎
3. ibid ↩︎
4. International work on climate change https://www.wwf.org.uk/what-we-do/projects/international-work climate-change# accessed on the 25th of February, 2025. ↩︎
5. NSW climate and energy action : Benefits of reducing emissions https://www.energy.nsw.gov.au/government and-local-organizations/ways-get-started/benefits-reducing-emissions accessed on the 25th of February, 2025. ↩︎
6. Kavitha , Nigeria Ties Oil Licenses to Low-Carbon Standards and Renewable Energy Goals  https://solarquarter.com/2025/01/03/nigeria-ties-oil-licenses-to-low-carbon-standards-and-renewable-energy goals/ accessed on the 26th of February, 2025. ↩︎
7. ibid ↩︎
8. Ian Roberts , National library of medicine The health co-benefits of climate change policies: doctors have a  responsibility to future generations https://pmc.ncbi.nlm.nih.gov/articles/PMC4953604/ accessed on the 26th of  February, 2025. ↩︎
9. ibid ↩︎