ESG: Stakeholders Harp on Carbon Market’s Transformative Power to Drive Sustainable Investments

Dike Onwuamaeze

Stakeholders in the Nigerian industrial sector as well as public officials at federal and state levels have emphasised the transformative power of the carbon market to drive sustainable investments in Nigeria and the rest of Africa.

Speaking yesterday in Lagos at the Pan-African Private Sector Environmental Solution Governance (ESG) Forum 2024 with the theme “The Carbon Market: Driving Investment for a Sustainable Africa,” the Managing Director of BAT West and Central Africa, Mr. Yarub Al-Bahrani, said that participants at the forum were gathered with a shared vision of harnessing “the potential of the carbon market as a transformative tool for driving investments that will shape a prosperous and resilient future for the African continent.”

Al-Bahrani stated that Africa is standing at the crossroads of unprecedented opportunity and pressing environmental challenges.
He said: “As the world transitions to a low-carbon economy, the carbon market offers Africa a unique chance to lead in climate action while attracting much-needed investment for sustainable growth.

“The forum today provides a platform for exploring how carbon credits, emissions reduction strategies, and innovative financing models can unlock new pathways for industries across the continent to thrive while addressing the urgent need for environmental stewardship.
“By leveraging the carbon market, we can generate economic opportunities that uplift communities, advance clean technologies, and build more sustainable industries.”

Speaking in the same vein, the Director General of Manufacturers Association of Nigeria (MAN), Mr. Segun Ajayi-Kadir, said that MAN is undoubtedly in solidarity with the forum as it recognised the overwhelming importance of giving priority to economic growth and social benefits while striving to mitigate the effects of climate change.

According to Ajayi-Kadir, MAN is enthused by the theme of the 2024 edition of the forum as the carbon market could reinforce efforts at promoting sustainable manufacturing practices, de-risk investment in the sector and engender accelerated growth.

He said: “The carbon market is, therefore, a critical factor for us as a just and veritable financial incentive to transition to a low-carbon economy.

“It will facilitate renewable energy projects and enhance our capacity to take maximum advantage of our abundant solar and wind sources.
“It will engender energy efficiency improvements; drive the development of green infrastructure development and aid sustainable land use practices.”

In his goodwill message to the ESG’s forum, the Director General of National Environmental Standards and Regulations Enforcement Agency (NESREA), Dr. Innocent Bariate Barikor, commended the organisers of the forum for advancing and promoting social and governance priorities across Africa, adding that Nigeria could play a critical role in supporting carbon market developments.  
According to Barikor, Nigeria should lead the green carbon market because it offered a powerful mechanism for attracting investment of the future.

He said: “Through carbon markets, Nigeria can advance priority sector investments to expand renewable energy, drive reforestation, and promote sustainable agriculture.

“These initiatives will not only reduce emissions, but also generate jobs and strengthen local economies, directly contributing to the renewable energy growth and carbon-saving economic opportunities.”

The Senior Special Assistant to President Bola Ahmed Tinubu of Sustainable Development Goals (SDGs), Mrs. Adejoke Orelope-Adefulire, in her welcome address to the forum said that the theme of this year’s forum resonated deeply with Nigeria’s collective journey towards a more sustainable and resilient world.

Orelope-Adefulire said: “As we address the challenges of climate change, it is crucial to recognise the carbon market’s role in localising investment for sustainable initiatives,” adding that frameworks for evaluating ESG must align with the SDGs.”  

Speaking in the same vein, the Governor of Lagos State, Mr. Babajide Sanwo-Olu, said that the continent is standing on the brink of a new era in which responsible investment would play a critical role in shaping Africa’s environmental future.

The governor, who was represented by his special adviser on SDGs, Dr. Oreoluwa Finnih-Awokoya, said that Lagos is positioning itself to become a central player in the African carbon market by fostering private sector partnerships that will support carbon-reducing projects and creating avenues for green investments.

He said: “By coming together, we are building a network that will empower the African private sector to be a driving force for a greener, more resilient continent.

“Together, Lagos sees this opportunity to create a carbon-resilient economy, economically vibrant and sustainable Africa.”