Establishing carbon market will expand Nigeria’s climate finance space, says minister

Muhammad Abdullahi, minister of environment, says Nigeria’s climate finance opportunities can be increased by setting up a carbon market. 

Carbon markets are trading systems where carbon emissions can be sold and bought for a price.

Speaking during a lecture in Abuja on Thursday, the minister said the establishment of a carbon market was provided for in Nigeria’s climate change act.

The market, he said, would ensure private sector engagement in climate action, adding that bridging the climate finance gap can only be achieved by private sector investment.

“There are obviously investment opportunities to expand national climate finance space with the new establishment of the climate change act in 2021 and its council which provides for establishing a carbon market,” NAN quoted him as saying.

“This will ensure private sector engagement alongside climate action.

“Nigeria took a bold step of finance, climate compatibility development, to the collaborations within the environment ministry and other systems of government and the capital market to issue sub-Saharan Africa first ever green bonds in 2017 and in 2018.

“As of 2019-2020, private sector investment accounts for 23 per cent of total climate finance committed. Bridging the Nigeria climate finance gap can only be achieved by the involvement of the private sector.”

The minister re-echoed the difficulty experienced by developing countries in accessing climate finance despite being critical to…