Nigeria To Establish Framework On Climate Data

FG to partner NGX on climate change disclosure, data - Vanguard News

Yemisi Izuora

Nigeria is strengthening efforts through a framework the will improve the climate data available to the investment and finance community.

Under this initiative the federal government is forging alliance with the Nigerian Exchange Limited (NGX) according to Minister of State for Environment, Sharon Ikeazor.

Ikeazor, gave the indication at the digital closing gong ceremony to mark the end of the 2021 stock trading year during which she explained that the framework will help issuers navigate climate disclosure.

The Minister noted that NGX has played an exemplary role in Nigeria’s commitment to mitigating the effects of climate change, adding that climate change is a serious and long-term threat to which “Nigeria has continued to show commitment to the goals of the Paris Agreement on Climate Change with our revision of the Nationally Determined Contributions (NDCs) pre-COP26 and also the recent accent of the climate change by Mr President which provides, amongst other things, the mainstreaming of climate changes in the country and the establishment of Council on Climate Change to be chaired by Mr President,” she said.

‘‘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 Decarbonisation Project”, she explained.

The Minister also added that investors are increasingly working together in response to climate change and added that the federal government will continue to engage NGX on climate disclosure and data.

She went on to say, “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”.

The Chief Executive Officer of NGX, Temi Popoola, while speaking said NGX remains resolute in its commitment to promoting sustainable finance because it recognises that urgent action is required to combat climate change and its impact as incorporated in the Paris Agreement on Climate Change and Goal 13 of the Sustainable Development Goals (SDGs).

Popoola said, “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. 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% 5-year green bond in 2017 to fund projects to develop renewable energy.

The second tranche, N15 billion ($36.1 million) 14.5% 7-year green bond was issued in June 2019 and was over-subscribed,” Popoola continued.

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.

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