AdminAs a measure of tackling the threat of climate change, the Nigerian government has promised to strengthen its collaboration with the Nigerian Exchange (NGX) to set up a climate financing envrionment in the country.
Minister of State for Environment, Chief Sharon Ikeazor, gave the hint during the weekend while performing the digital closing gong ceremony to mark the end of trading for 2021.
Join our WhatsApp ChannelIkeazor said the government would work with the NGX to build a framework that would help issuers navigate climate disclosure and ultimately improve the climate data available to the investment and finance community.
She said the NGX has played an exemplary role in Nigeria’s commitment to mitigating the effects of climate change.
She pointed out that climate change is a serious and long-term threat and Nigeria has continued to show commitment to the goals of the Paris Agreement on Climate Change with its revision of the Nationally Determined Contributions (NDCs) pre-COP 26.
“The collaborative effort of NGX provides an enormous platform for investors to improve their understanding of climate change and crucially play their part in transitioning the Nigerian economy towards a sustainable net-zero future,” Ikeazor stated.
“Nigeria has continued to show its commitment towards the attainment of the goals of the Paris Agreement of climate change with our revision of our Nationally Determined Contributions (NDCs) pre-COP26, and also the recent assent of the climate change bill by Mr. President.
“The climate change bill provides amongst other things the mainstreaming of climate change actions in the country and the establishment of the national council on climate change, to be chaired by Mr. President.”
She said the Federal Government launched the Nigeria Deep Decarbonization Project as part of measures to comply with the NDC in emissions reduction to climate change in Nigeria.
“I hope there would be a continuous collaboration between Nigerian Exchange Limited and the Federal Ministry of Environment to build a framework that will help issuers navigate climate disclosure, associated engagement with their shareholders, and ultimately improve the climate data available to the investment and finance community. So partnership with NGX will provide investors with important new tools to enable capital reallocation,” Ikeazor said.
Chief Executive Officer, Nigerian Exchange (NGX) Ltd, Temi Popoola said NGX is committed to promoting sustainable financial inclusion to integrate the financial risks and opportunities associated with climate change and other environmental challenges.
Popoola said, “NGX has shown strong commitment to sustainable finance over the years.
“We are committed to fostering the growth of sustainable financial products which integrate the financial risks and opportunities associated with climate change and other environmental challenges.
“In 2016, NGX collaborated with the Ministry of Environment and the Debt Management Office to deepen the green bond market. This effort led to the issuance of the maiden N10.69 billion, $25.8 million, 13.48 per cent 5-year green bond in 2017 to fund projects to develop renewable energy. The second tranche, N15 billion, $36.1 million, 14.5 per cent 7-year Green Bond was issued in June 2019 and was oversubscribed.
“In 2017, NGX played host to a conference on sovereign green bonds which served as a strategic engagement between the Federal Government and financial market players on the prospects of investing in sustainable development,” Popoola said
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