PROJECT CLIMATE SCREENING ASSESSMENT REPORT, 2023

Project Name: Rex Forestry Limited

Location: Oluwa Forest, Odigbo Local Government Area, Ondo State Sector: Agriculture (Forestry)

Value: US$ 5 million

S/N

Assessment Domain

Remarks

1.

Primary purpose of the project

The continuous cutting of economic trees by loggers in Ondo State with non-adherence to cutting and replacing the cut trees has practically led to huge deforestation and its attendant consequences in Ondo State forests and forest reserves. This has called for a concerted efforts by Ondo State government and relevant stakeholders, therefore the Rex Forestry Limited partnership and initiative is the direct solution to halt further deforestation, and promote afforestation and re-afforestation actions to ensure the good health of Ondo State Forest and directly contribute to the reduction of climate change effects on forest.

2.

Alignment with the country’s national climate- change mitigation and adaptation targets

The Ondo State Ministry of Environment in collaboration with the Ondo State Investment and Promotion Agency is to ensure, implement and monitor plans to align with the National Climate Change Policy for Nigeria, 2021. To implement adaption and mitigation measures that promote low-carbon development and create/ adopt green technology in industries and support low emission manufacturing systems, pursue greening of industry to continuously improve environmental performance.

3.

Contribution to Greenhouse gas emissions (GHG) emissions

The Rex Forestry Limited Afforestation Project as a carbon sink initiative will directly contribute to the achievement of the Paris Agreement on climate Change and the Nationally Determined Contribution target to reduce Green House Gas (GHG) emissions intensity GDP BY 20% by 2030 and the goal of keeping the global temperature increase to well below 2^oC.

4

Mitigation features that contribute to the transition towards a net-zero future

This project is majorly re-afforestation project, aimed by Ondo State government to massively promote forest regeneration and this keys into the Ondo State government on policy for tree planting by all residents and investors especially forestry investments to achieve the SDG 13 and creating a sustainable carbon neutral environment by 2050. The State Government recently allocated 37000 hectares of land to Rex Foresrty Limited for the planting of exotic trees such Gmelina Aborea,Teak and Mahogany for a period of 50 years. It is expected that before the expiration of the 50 years, over 5 million trees must have been planted.

PROJECT CLIMATE SCREENING ASSESSMENT REPORT, 2023

Project Name: Araromi Ayesan Oil Palm Plc

Location: Araromi-Obu, Odigbo Local Government Area, Ondo State Sector: Agro processing

Value: US$ 3 million

S/N

Assessment Domain

Remarks

1.

Primary purpose of the project

In Ondo State and throughout Nigeria, the growing demand for palm oil, by households and businesses calls for commercial investments in oil palm cultivation and sustainable oil palm production. The goal of this project by Araromi Ayesan Oil Palm Plc and the Ondo State government is to increase commercial production of oil palm as well decrease hunger in the nation by filling the gap in the demand for oil palm.

2.

Alignment with the country’s national climate- change mitigation and adaptation targets

In order to ensure food security and give households and enterprises access to oil palm for future manufacturing needs, the Ondo State Ministry of Agriculture and the Ondo State Development and Investment Promotion Agency play a crucial role. in accordance with the 2015 NDC and Paris Agreement, which prioritize promoting food and water security and limiting global warming to 2^oC.

3.

Contribution to Greenhouse gas emissions (GHG) emissions

In keeping with Agenda 2030 and 2063, which commit to eradicating poverty and achieving sustainable development goal 2 of security, Araromi Ayesan Oil Palm conceptualized and carried out the plan for commercial planting of palm trees, as well as the extraction of oil and the construction of an agricultural village with palm tree plantations.

4

Mitigation features that contribute to the transition towards a net-zero future

Araromi Ayesan Oil Palm is an existing oil palm plantation covering a land area of 3,000 hectares amounting to 426,000 palm trees. The State Government recently allocated 5000 hectares of land   to the Company for massive and commercial planting of draught resistant, disease resistant and high yielding oil palms seedlings  in year 2024 .  This would  serve as a direct contribution to sustainable agriculture and food sustainability, while the stage of oil extraction is committed to low energy use and operation that will reduce contribution to net zero future as an integrated oil palm estate.

PROJECT CLIMATE SCREENING ASSESSMENT REPORT, 2023

Project Name: Johnvents Industries Limited Chocolates and Cocoa Butter Factory Location: Alade Idanre, Idanre Local Government Area, Ondo State

Sector: Manufacturing/Agro-processing

Value: US$ 1.5 million

S/N

Assessment Domain

Remarks

1.

Primary purpose of the project

The increased population, urbanization and economic growth in Nigeria and in Ondo State has direct effect on increased demand for food, coupled with the need for the need to stimulate economic development through local economic development initiatives through value addition to abundant agricultural products like cocoa in Ondo State, thus the Johnvents Industries Limited partnership with Ondo State government is solving the agro based industries need in Ondo State, and stimulating the interest of people in regenerating the cocoa planting and achieving the goal of Ondo State government on cocoa revolution. This project is to stimulate massive cocoa planting, economic transformation and food security.

2.

Alignment with the country’s national climate-change mitigation and adaptation targets

The State Ministry of Commerce and Industries, in collaboration with Ondo State Investment and Promotion Agency (ONDIPA) provides the framework and monitoring to ensure the industrial facility keys into the Ondo State government policy on cocoa revolution and promotion of Local Economic Development(LEDs) in line with the Sustainable Development Goal 2 on food security/zero hunger and the National Climate Change Policy for Nigeria 2021 to accelerate industrial development utilizing energy mix with emphasis on renewables, and setting benchmarks for manufacturing and business against international best practice for industrial energy usage and NCCP policy on promotion of value chain based approach to climate resilient industry.

3.

Contribution to Greenhouse gas emissions (GHG) emissions

The chocolate and cocoa butter factory is a company that helps to reduce wastage of cocoa products within the Ondo State zones growing cocoa, promote re-generation of cocoa planting and thus directly making substantial contribution to development of carbon sink, in line with National Adaptation Strategy and Plan of Action on Climate Change for Nigeria (NASPA-CCN) 2011 to integrate climate change adaptation into National, Sectoral, State and Local government planning into the plans of universities research, civil society organisation and private sectors.

4

Mitigation features that contribute to the transition towards a net-zero future

The project conception is designed to ensure climate change mitigation measures leveraging on the use of local products to stimulate economic growth, Net Zero hunger, and align with the economic recovery and growth plan (2017-2020) to restore economic growth while leveraging on ingenuity and resilience of the Nigerian people and address long-term development goal of Nigeria which include low carbon and climate resilient development between 2020-2040. The Chocolate factory which is approximately 2755 hectares of land with capacity to produce 330,000kg of single estate premium chocolate annually will fill the enormous gap available in post-harvesting processing of Cocoa and also help to align with forward integration of industrial activities of the state.

PROJECT CLIMATE SCREENING ASSESSMENT REPORT, 2023

Project Name: Ondo State Government 30 Megawatts Power Plant Location: Ore, Odigbo Local Government Area, Ondo State Sector: Energy

Value: US$ 2 million

S/N

Assessment Domain

Remarks

1.

Primary purpose of the project

Heavy industries and local businesses have continued to groan under the inadequacy of power supply from the Benin Electricity Distribution Company (BEDC). The local residents of the southern senatorial district have been off the grid for more than a decade and this has crippled businesses and local entrepreneurs. Thus, the designed Ondo State 30 Megawatts power plant provides the needed response to the energy demand in the southern senatorial zone of Ondo State as well as provide the required energy demand of the Ondo State industrial hub located next door to the proposed power plant.

2.

Alignment with the country’s national climate- change mitigation and adaptation targets

The Ondo State Development and Investment Promotion Agency and the Ondo State Ministry of Environment provide the framework for clean energy for Ondo State through the promotion of the gas fired 30 megawatts powerplant. This is in line with the National Policy on Climate Change, 2021 to promote appropriate financing mechanisms for climate friendly and energy efficient investment project and support for local research and development of ICT capabilities to promote energy smart technologies

3.

Contribution to Greenhouse gas emissions (GHG) emissions

The power plant is a direct response to the compliance with the Paris Agreement on the climate change Nationally Determined Contribution NDC 2015 to promote clean energy access, as well as adaption of Carbon Capture and Storage (CCS) technology via-capturing of carbon-dioxide from power plants.

4

Mitigation features that contribute to the transition towards a net-zero future

The power plant  is currently designed for 30Megawatts, expandable to 60 Megawatts in the next 10 years. It is expected to distribute 50 Megawatts within the next 25 years. The plant is also  concerned to lowering the amount of fuel required to generate power in order to increase energy efficiency in the southern senatorial district of Ondo State and the Ondo State Industrial Hub. In line with the Nigeria Climate Change Policy Response Strategy (NCCPRS) and the reduction of Green House Gas emissions from power sector.

PROJECT CLIMATE SCREENING ASSESSMENT REPORT, 2023

Project Name: Sudit Oil and Chemicals

Location: Ore, Odigbo Local Government Area, Ondo State Sector: Agro processing

Value: US$ 1 million

S/N

Assessment Domain

Remarks

1.

Primary purpose of the project

The increased demand for red oil (palm oil) by industries and households in Ondo State and in Nigeria requires new investments in oil palm cultivation at commercial level as well as sustainable oil palm production initiatives. This project by Sudit Oil and Chemicals in partnership with Ondo State government is to bridge the gap in oil palm demand and reduce hunger in the country.

2.

Alignment with the country’s national climate- change mitigation and adaptation targets

The Ondo State Ministry of Agriculture and Ondo State Development and Investment Promotion Agency is strategic in ensuring food security and guarantee access to oil palm by households and industries for further manufacturing needs. In line with the Paris Agreement and NDC 2015 on promotion of food and water security and keeping the global temperature increase below 2^oC.

3.

Contribution to Greenhouse gas emissions (GHG) emissions

The conception and implementation by Sudit Oil and Chemicals of commercial planting of palm trees covering 5000 hectares of land, in the first instance amounting to 710,000 palm trees.  There is also a plan for extraction of the oil and creation of an Agric village with palm trees plantation, housing, industries, and recreation is in line with Agenda 2030, and 2063 with a commitment to eradicate poverty and achieve sustainable development goal 2 of food security.

4

Mitigation features that contribute to the transition towards a net-zero future

The early stage of Sudit Oil and Chemicals involves massive and commercial planting of draught resistant, disease resistant and high yielding oil palms seedlings of 710,000 units, this is directly contributing to agriculture and food sustainability, while the later stage of oil extraction is committed to low energy use and operation that will reduce contribution to net zero future as an integrated oil palm estate.