The Climate Bonds Initiative has welcomed the first meeting of the Green Bond Private Public Sector Advisory Group (GB-PPSAG) as marking a significant step towards Nigeria issuing its first tranche of sovereign green bonds.
Jointly convened by the Environment Minister Hon. Amina J. Mahommed and Minister of Finance, the Hon. Kemi Adeosun, the advisory expert group held its first meeting in Abuja today.
According to the Environment Minister, the GB-PPSAG will provide:
- Advice and identify likely impediments to the issuance process
- Guidance on how projects can be certified ‘Green’
- Support to the Federal Ministry of Environment in its implementation of the Green Bond Guidelines, in order to maintain a process that is transparent and consistent
In partnership with UNEP, Climate Bonds Initiative is one of the stakeholder members on the Advisory Group.
Convening of the group flows from the Climate Week New York 2016 announcement by Nigeria of an intention to issue green bonds, a Ministry of Environment stakeholder consultation in September and the subsequent development of Green Bond Guidelines launched in November 2016.
The guidelines draw from a template model provided by the International Capital Market Association (ICMA) with technical inputs from Climate Bonds Initiative, UNEP, and the World Bank.
Justine Leigh-Bell, Director of Market Development, Climate Bonds Initiative:
“2017 is already shaping up as the year of sovereign green bonds and this initial meeting of the advisory expert group signals that Nigeria is moving steadily towards being the first African nation to issue.”
“Achieving this goal will be a significant milestone for the development of green finance in Africa. In partnership with UNEP, Climate Bonds will continue our advice and technical support as the GB-PPSAG works with the Environment and Finance Ministries towards the first tranche of Nigerian sovereign green bond issuance.”
About Climate Bonds Initiative:
The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy. Climate Bonds carries out a range of international green bond market development activities across the EU, North America, LATAM, Africa, Asia, and China.
Nigeria has a population of approximately 180 million and in September 2016 the IMF rated Nigeria as having Africa’s largest economy. It is projected to move from the top 30 into the top 25 of global economies by 2020.
Lagos is one of the world’s current megacities with a 2016 population estimated by the UN World Cities in Data 2016 booklet at 13.6 million and a 2030 population of approximately 24.2 million.
About Nigeria Sovereign Green Bonds:
Nigeria’s intention to issue sovereign green bonds was foreshadowed by Environment Minister Hon. Amina J. Mohammed in May 2016 & again at a green finance consultation and stakeholders meeting convened by the Ministry of the Environment in early September 2016.
The decision to issue during 2017 was formally announced by President Buhari during Climate Week New York on 23rd September 2016 where Nigeria signed the Paris Climate Agreement.
It is estimated by the Environment Ministry that Nigeria will need up to N 44.7bn (USD 142bn) between now and 2030 to meet its climate commitments.