The Minister of Environment Mrs. Amina J. Mohammed has said that the ministry of environment is taking actions towards creating a green bond as part of its bid to diversify the economy.
This was made known during a courtesy visit to the Nigerian Stock Exchange for the closing gong ceremony on Tuesday in Lagos.
The issuance of green bonds is a means of raising finance for climate friendly purposes. It providesopportunity for economies to grow in a manner that is climate resilient, ensuring poverty reduction whilst meeting its energy deficiency.
According to The Chief Executive Officer of the NSE, Oscar Onyema, these efforts are part of the Exchanges’ sustainability program. Hence a need to provide the platform for the minister to discuss with organisations under sectors such as the Pharmaceuticals, Building, Industries and fast moving consumer goods listed across sectors of the market.
Mrs. Mohammed who had earlier met with CEO’s of companies in a bid to discover incentives that could foster growth enhance diversification and create a safer environment, explained that her visit to the NSE is to re- emphasize the Federal Government’s commitment to sustainable use and management of the environment in the fight against poverty and food security, adding that the ministry of environment requires a cooperative business approach with the private sector.
She further pointed the ministry’s commitment towards putting together a framework and platform geared to tackle the challenges posed by climate change such as desertification, waste management and oil spillage in the Niger delta region.
Typically, a green bond is a fixed income instrument issued for the exclusive purpose of financing projects that have positive environmental or climate benefits. The typical features of normal bonds apply to green bonds as their tenors, structures and currencies are based on investor demands. Most importantly, a transparent process is required by investors to ensure that the finance raised is connected to specific projects and the expected positive impacts can be evaluated. Green bonds may be issued privately or publicly by government and corporate entities.