No country has developed without access to reliable electricity. With a weak electricity infrastructure marred by insufficient capacity, poor reliability and with 625 million people un-electrified, sub-Saharan Africa’s electricity poverty has hugely inhibited its economic growth. Nigeria unfortunately leads the way with 93 million people lacking energy access and the country largely dependent on alternative energy sources primarily diesel/petrol generators, battery backup solutions, kerosene and biomass. With growing attention towards renewable energy and its potential to alleviate Nigeria’s electricity crisis, more battery backup systems have been deployed for renewable energy storage. Solar rooftops are gradually becoming a common sight in the country especially in the major cities such as Lagos and Abuja.  The large battery market is becoming much bigger and lucrative especially for lead-acid batteries. Currently, almost all backup solutions use lead-acid batteries primarily due to their lower cost and availability compared to other battery options.

Lead-acid batteries are the most common and popular battery type used for energy storage in Nigeria. While alternatives such as Lithium-ion batteries exist and are increasing popular in developed countries due to their better energy density and growing use in electric vehicles, lead acid batteries dominate Africa’s energy storage market primarily for their use in cars, Uninterrupted Power Solution (UPS) systems, and now increasingly for energy storage in the emerging renewable energy market.

Currently, it is estimated that nearly 99 million lead-acid batteries are generated annually in the country. With a growing renewable energy industry and positive developments in the sector including government’s 30,000MW renewable energy 2030 target, the signing of PPA with 14 solar companies, mini-grid development through the now approved Mini-Grid Policy, and other developed renewable energy policies, the inflow of lead acid batteries is expected to increase to a whole new level. While these are positive developments for the industry, there is a very critical but currently overlooked aspect which has the capacity to undermine and potentially ruin the reputation of the renewable energy industry – The Management of Used Lead Acid Batteries (ULAB). For every 6 kilowatts of installed solar PV system, about 16 units of lead-acid batteries are required (200Amp, 12V). Over the next decade should the renewable energy industry grow as predicted, millions of lead-acid batteries are expected to flow into the country for the renewable energy storage.

Used lead-acid batteries are potentially dangerous due to the toxicity of the lead which comprises a significant percentage of the battery weight and the sulphuric acid solution electrolyte. The acid is corrosive and environmentally polluting while exposure to excessive levels of lead can lead to brain and liver damage, respiratory issues, impaired hearing, amongst many other health issues, particularly in young children. Currently Nigeria serves as a regional hub for the transportation of ULAB across West Africa due to its large ULAB market.

But what does this really mean considering the high environmental and health risks associated with ULAB recycling and disposal? The Heinrich Boell Foundation, as part of its mission to encourage sustainable development, carried out a research on the ULAB market in Nigeria and discovering a huge level of environmental pollution and health risks from the activities of illegal ULAB smelters and recyclers in the country. It was discovered that over 106,000 tons of ULAB are generated in the country with 96,000 tons collected and sold annually. A separate study estimates that about 50,000 tonnes of lead are recovered from ULAB in the country. Most prominent was the fact that no form of safety or health measure was adopted from the transportation to the recycling and disposal of the ULAB. More worrisome is that some of these smelters were located in residential areas or close to institutions such as schools and hospitals with lead poisoning risks. With the huge inflow of lead-acid batteries into the country – most times sub-standard batteries – there are concerns that the booming renewable energy industry will lead to a wave of toxic battery waste in Africa due the lack of standard recycling facilities.

But there might be a ray of hope as shown by one private sector player in the ULAB market who has invested significant resources into making sure ULAB is recycled following international standards and assessed as one of the best ULAB facilities in Africa. In the heart of Nnewi, Anambra State, Union Battery ULAB Recycling facility boasts of a ULAB recycling capacity of 100,000 batteries with modern recycling equipment, a waste gas treatment system and proper safety standards. The facility recycles almost 100% of the ULAB component except the slag waste. With such a huge battery market in the country, its facilities do not only have the capacity to drive economic growth but generate huge job opportunities. Unfortunately, this facility operates below 10% of its capacity. The reason is simply a case of “dirty money”, with the informal recyclers who have not invested in any health, safety or environmental measures paying much more for the waste batteries from battery collectors than formal standards recyclers such as Union Batteries can afford in order to make profit. As such, a huge percentage of ULAB goes to the dirty informal recyclers, polluting our environment and causing health issues. With an increasing number of such informal recyclers, one should not be surprised should part of the smoke or air one inhales in the environment contain lead particles especially if residing close to any form of battery activity.

So what is the solution? One would think that, with such a huge market especially from the automobile industry, there should not only be specific policies and standards regulating the battery market, but also enforcement mechanisms. Unfortunately, such a policy is unavailable with the closest laws related to ULAB, according to the National Environmental Standards and Regulatory Enforcement Agency (NESREA) including the National Environmental (Sanitation and Waste Control) Regulations S.1 28 of 2009 and the National Environmental (Motor Vehicle & Miscellaneous Assembly Sector) Regulations. Following extensive stakeholder engagement, research and training workshop organised by the Heinrich Boell Foundation involving ULAB exporters, recyclers, renewable energy companies and organizations, research bodies, the Federal Ministry of Environment and NESREA, proposed key steps to ensure a well-regulated and sustainable ULAB market include:

• Adopting the Basel Convention and Benchmarking Assessment Tool: The Basel Convention is an international treaty which Nigeria is a signatory to, designed to reduce the movement of hazardous waste between nations particularly from developed to developing nations. The Basel Convention has a set of standards and framework for regulating ULAB including the Technical Guidelines for the Environmentally Sound Management of Waste Lead-acid Batteries, and Standards and Best Practices for Environmentally Sound Management (ESM) of Used Lead Acid Batteries Recycling. The Federal Ministry of Environment should implement the Basel Convention and adopt these tools following the Convention’s Training Manual for the Preparation of National Used Lead Acid Batteries: Environmentally Sound Management Plan in the Context of the Implementation of the Basel Convention.
• While it is okay having general guidelines on hazardous waste, without an independent inspection, monitoring, evaluation and verification framework, there would most likely be no conformance with good practice or compliance with the adopted Basel Convention tools. The Federal Ministry of Environment should therefore also adopt and use the Benchmarking Assessment Tool, developed in accordance with the International Lead Association (ILA) Guidance Notes and the Basel Convention, to provide a consistent approach in assessing any phase of the ULAB life cycle particularly ULAB recyclers.
• Develop a ULAB Policy and Extended Producer Responsibility (EPR) Framework: The Federal Ministry of Environment should develop a national policy for ULAB management and regulation covering all aspects of the business from transportation to recycling and disposal, as well as an EPR system for the battery market especially in the renewable energy industry, similar to the developed EPR system for the Nigerian EEE Sector. The policy should have legal backing to ensure enforcement.
• Create a level playing ground in the sector: The government through the development of this policy and its implementation of standards across the ULAB market will create a level playing field for ULAB recyclers forcing the informal smelters to adopt best environmental and safety businesses, and encouraging the standard formal recyclers to continue good business practices. The key element of this is not just the development and adoption of the proposed tools, but its enforcement. The government environmental MDAs in collaboration with organizations such as the Heinrich Boell Foundation can organize training for these informal recyclers highlighting the health risks as some of them might be ignorant, and help them adopt good practices.

There are significant economic opportunities in the ULAB market especially when properly regulated by the government. With the volume of ULAB generated daily in the country, massive opportunities exist for similar standard recycling facilities to be set up, serving not only the Nigerian market but the regional African market. With the potential to create massive job opportunities and a thriving battery market for the renewable energy industry, government and the private sector should work together in developing this market properly and reaping its economic benefits. However most importantly, our lives and environment should be protected through safe and environmentally friendly ULAB recycling practice.

By Kelechi Ekwegh (Freelance Writer, Lagos; Kelechi.writingpen@gmail.com)

The Global Environment Facility (GEF) on Monday, November 13, 2017 announced its support for a first of its kind climate resilience investment fund today at the UN Climate Conference (COP23) in Bonn. The fund will boost adaptation efforts in some of the world’s most vulnerable countries. And, for the first time, private investors will have the opportunity to get their return by investing in a fund that exclusively focuses on resilience-related companies.

The fund, an initiative developed by US-based investment firm Lightsmith Group, is receiving support from the GEF Special Climate Change Fund (SCCF) project called the Climate Resilience and Adaptation Finance and Technology Transfer Facility (CRAFT). Other partners include the Nordic Development Fund (NDF) and Conservation International (CI).

Announcing the GEF’s contribution of $1 million, GEF CEO and Chairperson, Naoko Ishii, said “The tide is changing with respect to private sector support for resilience.”

“Our role as a public institution is to share the risks,” she said. “I hope the new equity fund, the first of its kind for the GEF, can serve as an example of how to get more private sector capital into the resilience space.”

CRAFT will invest in companies that provide either “resilience intelligence”, such as data analytics, modeling, and forecasting, or “resilience solutions” including products and services that address climate risks in areas like water, agriculture and energy.

Envisaged areas for investment range from climate-smart supply chain analytics software and drought-tolerant tree crops to coastal protection and disaster recovery.

The Lightsmith Group has developed the concept and will be in charge of executing and managing the fund. Conservation International will be the implementing agency for the GEF project. The NDF has approved financing of €500,000 to partly finance the preparation activities and establishment of CRAFT.

In a press statement, NDF said it would support the Lightsmith Group in bringing the CRAFT concept into execution, by leveraging the extensive experience that NDF has built over the years in the field. “By supporting CRAFT in the early-stage phase, NDF has the opportunity to consolidate its leading role in the context of building the business case of climate adaption and resilience and private sector engagement in developing countries,” said Isabel Leroux, Country Programme Manager at NDF.

“Given their leadership in climate finance, GEF and NDF are ideal partners for this effort to launch the first private sector climate adaptation and resilience investment strategy,” said Sanjay Wagle, Managing Director of The Lightsmith Group. “This funding demonstrates the public sector’s commitment to working with the private sector to address the critical problem of climate change and its recognition of Lightsmith’s unique combination of investment expertise and government experience.”

“Many of the most cost-effective solutions for building resilience to the impacts of climate change come from nature itself. Conservation International, as the GEF Implementing Agency, is pleased to be part of this partnership,” said Shyla Raghav, CI’s Climate Change Lead. “As pressure mounts to find new and innovative sources of climate finance, this effort is a promising and paradigm-shifting approach to scaling up finance for climate change adaptation. It will go a long way to help us start mobilising the resources to finance the needed solutions.”

The new SCCF project, also endorsed by the Climate Innovation Lab, will facilitate the completion of investment, impact, and fundraising strategies for CRAFT, support the identification and incorporation of 250 companies into the Fund’s database of climate resilience companies, and identify at least five high-probability potential investment transactions.

CRAFT could mobilise as much as $500 million to invest in adaptation, acting as a stepping stone towards catalysing a broader market for climate resilience solutions and investments, and provide direct benefits to reduce the vulnerability of businesses and communities through building resilience.

Helping the most vulnerable countries adapt

The SCCF is a fund open to all vulnerable developing countries, and supports a wide range of activities related to climate change. It funds, in addition to adaptation, technology transfer, mitigation in selected sectors including: energy, transport, industry, agriculture, forestry and waste management; and economic diversification.

The SCCF complements the Least Developed Countries Fund (LDCF), which holds the largest portfolio of adaptation projects in the Least Developed Countries (LDCs). Both are entrenched in the Paris Agreement, and expect to deliver benefits to 25 million people though past and current projects. In 2017, the GEF Council approved $140 million in grant resources from the LDCF for projects in 19 of the poorest countries in the world.

At the opening of the COP23 in Bonn, the German government announced €100 million to support developing countries in climate change adaptation, including 50 million to the LDCF.