The Securities and Exchange Commission in partnership with the African Development Bank, have urged for a greater acceptance of green finance as a strategy to address climate change and promote a sustainable economy in the country.
This was disclosed by the Director-General of the Securities and Exchange Commission, Emomotimi Agama at a capacity-building workshop for capital markets operators on green finance in Lagos on Tuesday, according to The Punch.
Agama stated that climate change posed a risk to humanity, citing the International Monetary Fund’s report that highlights the warmest period recorded in recent years.
“Embracing green finance will help tackle the current problem. We must also adhere to government principles that enhance our efforts against climate change,” he said.
He emphasized that in order to set an example for sustainable development, the Federal Government and the Debt Management Office had taken the lead in funding efforts for renewable energy and afforestation projects.
He asked companies to embrace green finance concepts and move away from unsustainable practices in order to facilitate this shift.
Agama stated that it is critical to include important stakeholders in talks that advance green finance and that there is a critical opportunity to match investment strategies with governance, social, and environmental principles.
He said that the organization is dedicated to promoting good change through green finance efforts and highlighted a favorable trend of funds with a sustainability focus.
The onus lies with all of us to continue expanding green bond issuances by identifying needs and developing appropriate sustainable financing products,” Agama noted.
He urged stakeholders to take advantage of integrated policy advice, capacity building, and regulatory support in order to create momentum for a green economy.
Meanwhile, the Executive Commissioner of Operations of the Securities and Exchange Commission, Bola Ajomale said that risk assessment, monitoring, reporting, and portfolio management all depend on artificial intelligence, machine learning, and big data analytics.
Ajomale cited blockchain technology and the usage of climate bond certification as two examples of innovations that have improved green finance. He claimed that these technologies encourage sustainable investment practices by facilitating market analysis and transparency.
“Artificial intelligence, machine learning, and big data analytics will help in risk assessment, monitoring and reporting, impact measurement, transparency and traceability, portfolio management, data collection, market analysis, and consumer behaviour to analyse where the opportunities are to invest,” Ajomale said.
He stated that international bodies such as the European Securities and Markets Authority and the Financial Conduct Authority have advanced tools to monitor markets and instil confidence in green finance to foster trust in the green finance sector.
In his remark, the Executive Director of Climate Transition Limited, Olumide Lala emphasized turning the obstacles posed by climate change into possibilities.
He emphasized the value of market expansion and capital mobilization in advancing sustainable objectives and a net-zero emissions economy.
Lala endorsed the ICMA Green Bond Principles, which support issuers in financing environmentally sound projects.
“We should convert the challenges into opportunities. The purpose and importance of climate change are that it affects capital mobilization, support for sustainable goals, and market development.
“The ICMA green bond principles seek to support issuers in financing environmentally sound and sustainable projects that foster a net zero emissions economy,” he stated.
