The Federal Government at the weekend assured that it would step up its collaboration with the Nigerian Exchange (NGX) with a view to developing the climate financing environment in Nigeria.
Minister of State for Environment, Chief Sharon Ikeazor, who performed the digital closing gong ceremony to mark the end of trading for 2021, said the government would work with the NGX to build a framework that will 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.
She added that the recent assent of the climate change framework by President Buhari which provides for the mainstreaming of climate changes in the country and the establishment of Council on Climate Change to be chaired the President were evidence of Nigeria’s commitment to climate change.
“With the step taken immediately after COP26, Nigeria has further demonstrated its commitment towards the Paris Agreement on Climate Change. As part of measures to comply with the National Determined Contributions (NDC) in emissions reduction to climate change in Nigeria, the Federal Government launched the Nigeria Deep Decarbonization Project.
“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. Partnership with NGX will provide investors with important new tools to enable capital reallocation,” Ikeazor said.
grate the financial risks and opportunities associated with climate change and other environmental challenges. NGX has shown strong commitment to sustainable finance over the years.
“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.
Source: thenationonlineng.net
