NGX Facilitates Use of Green Bond in Achieving SDGs Objectives, Combat Climate Change

Kayode Tokede

The Nigerian Exchange Limited (NGX) has said that it is facilitating the use of green bond in achieving SDGs objectives and combat climate change.

In a statement, the NGX said it is currently working with leading market stakeholders to build the capacity of existing and potential corporate green bond issuers on green bond issuance process and reporting best practices.

The NGX added that it is also working closely with the Federal Ministry of Environment and Debt Management Office (DMO) on the issuance of the third Sovereign Green Bond in Nigeria.

Nigeria, it noted, joined the global community two weeks ago to review and assess progress being made in the quest to tame climate change and achieve sustainable development.

The NGX added that one of the prominent features was the understanding of the importance of the financial system in the climate change debate.

It said, “On October 28, 2021, Nigerian Exchange Limited participated in the Africa Green Bonds intensive UK & Europe Forum, which brought together policymakers, regulators, issuers, investors and professionals at the forefront of green bonds, ESG performance, climate risk analytics and sustainable investing in Africa and globally.

“NGX participated on the panel on ‘How Exchanges are accelerating the Growth of Sustainable Bonds Market,’ alongside representatives from Nairobi Stock Exchange, JSE and United Nations Sustainable Stock Exchanges. It is noteworthy that the Exchange supports capacity development and investor awareness through X-Academy, its specialized learning centre that offers bespoke capital market and business courses including courses across the Sustainable Finance theme.”

“Globally, climate change is recognised as a real and potentially destabilising threat to economies and the well-being of people, particularly the most vulnerable.Securities exchanges have a critical role to play in reallocating capital towards the achievement of Sustainable Development Goals (SDGs) and the targets of the Paris Agreement on climate change. This is even more important in Sub-Saharan Africa (SSA) where countries are lagging all other regions in the world across various development indicators, including the Sustainable Development Goal global index and the Human Development Index.

“In response to this, NGX, as a member of the Sustainable Stock Exchange Initiative (SSE) since 2013, has a long-standing commitment to foster the growth of sustainable finance in Nigeria. The Exchange recognises the critical need to drive sustainable finance as a tool to accelerate progress towards the achievement of the Sustainable Development Goals (SDGs) and combat climate change and its impact as enshrined in the Paris Agreement on Climate Change, “it stated.