The Minister of Environment, Balarabe Lawal, announced on Wednesday that the government will issue the third green bond in the next few months to support environmental financing.
Lawal made this announcement at the 17th meeting of the National Council on Environment in Abuja, themed ‘Environment financing: Need to mobilise more windows for generating adequate resources in support of environmental sustainability efforts,’ organized by the Federal Ministry of Environment in collaboration with the Food and Agriculture Organisation of the United Nations.
The council serves as Nigeria’s highest policy-making body on environmental matters, focusing on deliberations and consultations.
In 2017, the government issued its inaugural N10.69 billion green bond with a five-year tenor to fund renewable energy projects. This successful issuance marked Nigeria as the first country in Africa to take this step.
Following this, in 2019, the government announced its second green bond issuance of up to N15 billion.
Lawal emphasized the importance of mobilizing financial resources for environmental sustainability, enabling the allocation of resources towards projects and initiatives aimed at protecting and preserving the environment.
“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.