Nigerian Exchange Limited (NGX) and International Finance Corporation (IFC), yesterday signed a Memorandum of Understanding (MoU) to further deepened green bond sustainability in Nigerian capital markets.
Speaking at the “Green and Sustainability Bond” workshop in Lagos, the Chief Executive Officer, NGX, Mr. Temi Popoola, said the limited flow of climate finance remains a major issue for the implementation of mitigation and adaptation actions in Africa, particularly Nigeria.
He said the Exchange in 2016 conceptualized and developed the Green Bond Product Paper, which was embraced and championed by the Debt Management Office (DMO) and the Federal Ministry of Environment in recognition of the climate finance needs, particularly in Nigeria, and the urgent action required to combat climate change and its impact as enshrined in the Paris Agreement on Climate Change.
According to him, “This endeavor resulted in the issuance of the first N10.69 billion or about $25.8 million 5-year green bond in 2017 to fund renewable energy development projects. This followed the Federal Government of Nigeria’s ratification of the Paris Climate Agreement, which necessitated the need for long-term financing to meet Nigeria’s NDCs in lowering greenhouse gas emissions.”
He said the bourse in its collaboration with internationally recognized organizations such as the IFC is targeted at sharing valuable green finance experiences and best practices, as well as promoting the development of sustainable finance market segments for supporting the government, policymakers, regulators, financial market participants, domestic and international thought leaders, investors, and other market stakeholders.
He expressed that the management of the Exchange is committed to promoting the development of long-term financial solutions that take into account the financial risks and possibilities posed by climate change.
The Senior Country Manager, IFC, Kalim Shah said the corporation is partnering with NGX on sustainable financial products in the capital market and country at large.
He noted the MoU signed with Exchange targeted at facilitating knowledge sharing with capital market stakeholders on green social and sustainability.
He disclosed that IFC has invested more than $10billion in green bonds globally since 2010 across 178 bonds in 20 currencies.
The Director, Department of Climate Change, Federal Ministry of Environment, Dr. Iniobong Abiola-Awe, who was representing the Honorable minister of environment, Mohammed Abdullahi, reiterated President Muhmmadu Buhari’s commitment to reaching net zero emissions by 2060.
She called on market stakeholders to think of innovative ways of financing key green bond projects in order to tackle climate change issues in the country.
SOURCE: THISDAY
