Lara Adejoro
The Federal Government says it will issue the third green bond to facilitate environmental financing in the next few months.
This was made known by the Minister of Environment, Balarabe Lawal on Wednesday at the 17th meeting of the National Council on Environment organised by the Federal Ministry of Environment in collaboration with the Food and Agriculture Organisation of the United Nations in Abuja, themed ‘Environment financing: Need to mobilise more windows for generating adequate resources in support of environmental sustainability efforts.’
The council is Nigeria’s highest policy-making body on the environment sector aimed at deliberating and guiding consultations on environment issues.
PUNCH Healthwise reports that the government had in 2017 issued a maiden N10.69bn green bond with a five-year tenor to fund projects for the development of renewable energy.
With the successful first issuance in 2017, Nigeria became the first country in Africa to take such initiative.
In 2019, the government announced its second green bond issuance of up to N15bn.
Lawal said mobilising more financial inflow for environmental sustainability is essential because it allows for the application of resources toward projects and initiatives aimed at protecting and preserving the environment.
He said, “As we are aware, environmental financing is a capital necessity. Mobilising more financial inflows for management is a need even for innovative financing mechanisms such as the green bond, which I think we are almost there. We’ve been on it for a very long time. I believe that in the next few months, we are going to issue the third green bond.
“It is also important for you to start thinking of trying to issue green bonds, carbon pricing, and public-private partnerships. This will help generate the resources needed for effective environmental protection and conservation efforts.
“I, therefore ask members of this council to intensify exploration and implementation of financing accounting at this level.”
The minister noted that climate change threatens ecosystems, livelihoods, and biodiversity, and swift actions are needed to mitigate the adverse effects of climate change.
“We must redouble our efforts to mitigate greenhouse gas emissions, embrace renewable energy solutions, and foster sustainable practices across all sectors.
“As guardians of biodiversity, we must safeguard our precious ecosystems from degradation and exploitation. Protecting our forests, wetlands, and marine habitats is not merely an environmental imperative but a moral obligation to preserve the rich tapestry of life on earth,” he said.
Earlier in his welcome address, the Minister of State for Environment, Dr Iziaq Salako said it is imperative to place the highest premium on the health and sustainability of the environment.
“It is a widely accepted maxim that without money, ambitions are prone to become wishful thinking and intended actions paralysed. Our gathering here at this NCE to examine innovative ways of funding our ambitions and actioning our thoughts is therefore a critical imperative.
“As important as the environment sector is, we still have to compete with other sectors for the limited funds available in both the public and private sectors. We therefore need to think more outside the box, and be more transparent, evidence-driven, and result-oriented to attract the needed funds to our sector,” he said.
The minister emphasised the need for stakeholders in the public and private sectors to forge strategic partnerships to mobilise funding and create innovative models to combat environmental crises in the country.
“The Federal Ministry of Environment is well prepared to take leadership in this regard and has been implementing innovative financing mechanisms like the issuance of the Nigeria Sovereign Green Bond to drive private sector funding into the system.
“I invite state governments to come on board and examine the opportunities for climate financing through the issuance of their green bonds,” he said.
In his goodwill message, the FAO representative in Nigeria and ECOWAS, Koffy Dominique said there is a need to chart a course for a sustainable and thriving future for Nigeria as the environment is under increasing pressure from climate change, deforestation, and pollution, among others.
Represented by Tofiq Braimah, he said once appropriate conditions are in place, it becomes easier for investment opportunities towards emission reductions.
“Progress has been made but more actions need to be taken in institutionalising transformational planning, from multisectoral integrated programming and investments, including leveraging the support of the private sector, and ensuring policy coherence in addressing the drivers of our environmental challenges
“FAO is committed to supporting the government at all levels to enhance sustainable natural resources management, and this includes support to implement, monitor and report climate commitments outlined in the National Determined Contribution document, continuous support to accessing climate finance and partnership and technical support to mainstreaming agrifood systems to the National Biodiversity Strategy and Action Plans, among others,” he added.
