The Securities and Exchange Commission (SEC), in collaboration with the African Development Bank (AfDB), is urging a significant increase in green finance as a strategy to combat climate change and promote a sustainable future for Nigeria.
This call to action emerged during a capacity-building workshop on green finance held in Lagos for capital market operators. Emomotimi Agama, Director-General of the SEC, emphasized the urgency of addressing climate change, citing International Monetary Fund reports highlighting recent record-breaking temperatures.
“Embracing green finance offers a powerful solution to the climate crisis we face,” Agama asserted. “We must actively support government efforts and adhere to principles that bolster our fight against climate change.”
Green Finance: A Catalyst for Sustainable Development
The workshop highlighted several positive developments. Agama commended the Federal Government and Debt Management Office’s leadership in financing afforestation and renewable energy projects, setting a strong example for sustainable development. He urged businesses to join this critical transition by abandoning unsustainable practices and embracing green finance principles.
Agama stressed the importance of collaboration among key stakeholders to propel green finance forward. He emphasized that aligning investment practices with environmental, social, and governance (ESG) principles is crucial for a sustainable future.
The workshop also highlighted the growing popularity of sustainability-themed funds. Agama pledged the SEC’s commitment to driving positive change through green finance initiatives.
“The responsibility lies with all of us to expand green bond issuance by identifying needs and developing suitable sustainable financing products,” Agama remarked.
Building a Green Economy: Collaboration is Key
The workshop participants emphasized the importance of coordinated efforts to build momentum for a green economy. Stakeholders were urged to leverage policy advice, capacity building programs, and regulatory support.
The use of cutting-edge technologies like artificial intelligence, machine learning, and big data analytics was identified as crucial for risk assessment, monitoring, reporting, and portfolio management in green finance initiatives. Additionally, participants highlighted the role of climate bond certification and blockchain technology in promoting market transparency and fostering trust in sustainable investment practices.
Converting Challenges into Opportunities
The workshop concluded with a call to action from Olumide Lala, Executive Director of Climate Transition Limited. Lala emphasized the importance of transforming climate change challenges into investment opportunities. He stressed the need for capital mobilization and market development to achieve sustainable goals and transition to a net-zero-emissions economy.
Lala endorsed the ICMA Green Bond Principles, a framework designed to support issuers in financing environmentally sound projects. “We must turn these challenges into opportunities,” Lala concluded. “Green finance is critical for capital mobilization, achieving sustainable development goals, and fostering a net-zero-emissions economy.”
