FG, NGX Partner to Navigate Climate Disclosure, Data

The federal government has said it will continue to partner with Nigerian Exchange Limited (NGX) to build a framework that will help issuers navigate climate disclosure and eventually improve the climate data available to the investment and finance community.

Chief Sharon Ikeazor, the Minister of State for Environment, stated this during the Digital Closing Gong Ceremony hosted by NGX to mark the end of trading for the year 2021.

Ikeazor stated that NGX has played an exemplary role in Nigeria’s commitment to mitigating the effects of climate change.

She explained 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-COP 26, coupled with the recent assent 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”

“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”, she explained  further.

The Minister hinted 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.

In her words: “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”.

Temi Popoola, the Chief Executive Officer, NGX, while welcoming Ikeazor,  said that 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 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 over-subscribed.”

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