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How Buhari’s ill-health is delaying Nigeria’s Green Bond kick off date

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How Buhari's ill-health is delaying Nigeria's Green Bond kick off date

Nigeria is paying a price over the non return of President Muhamnadu Buhari from his health vacation since May 7 2017.

The country’s Green Bond climate Financing Initiative (GBFI) billed to have kicked start in the early week of August has been shifted.

An internationally monitored programme, the GBFI is one of the climate change projects for Environmental Impact Assessment (EIA) which is billed to see Nigeria target reduction in carbon emissions by between 20-25 per cent by the year 2030 and at the same time assist carbon emitters find solutions to the problem.

Other countries that fell in the same category with Nigeria, including, Venuzeula, Qarta and Iraq, are said to have already launched their own initiative.

A competent senior official of the Presidency, on condition of anonymity told Ripples Nigeria that all arrangements put in place to have the project lifted off the ground were stalled as the attention of all relevant offices had been diverted in the past one month on the anticipatory return of the President from London.

He put it this way: “One of the major projects that could have heralded Buhari’s resumption of work included flagging off the Green Bond. It was scheduled to fall within the first week of August 2017, but has been put on hold.

“Even the Acting President, Yemi Osinbajo, had agreed with the planners of the bond launch that it was worth the while to wait a bit more to see to the possibility of Mr. President rejoining the system with the official kicking off of the programme marking it. ”

But Nigeria, which complained of certain obstacles militating against achieving much in the area was given the end of second quota of 2017 to roll out its plans, leading to policies capable of quickening its already known slow process in achieving results in reducing carbon dioxide emission in the environment.

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However, the Director, Department of Climate Change (DCC) of the Federal Ministry of Environment, Dr. Peter Tarfa, at the weekend, stated that all routine administrative issues associated with having Nigeria meet the expectations of the international community on the issue of clean environment were being put in place.

He stopped short at confirming that the August deadline could not be ascertained, but said efforts were being made with all relevant offices towards having the Green Bond programme launched.

“What is important is that, unlike in the past a date is being considered, compared with the situation before when Nigeria was requesting for time to get clearer picture of the level of carbon emission in the system.

“That has been established by the various regulatory organisations involved in the establishment of the Green Bonds and which have gradually eliminated all huddles, thereby making the ministry optimistic that some progress have been made,” the director said.

He added that through the initiative of the government, a national body to determine the volume of carbon dioxide emission in Nigeria by all the sectors of the economy had been funded by Nigeria and donor agencies.

Tarfa further stated that the Green Bond as an innovative initiative is meant to generate resources for Green projects as reflected in the 2017 Budget, under the Sovereign Green Bonds (SGB).

What is currently awaited, Tarfa stated, is the launch of the offshore green bonds, which is not necessarily tied to the Federal budget, as it is expected that the private sector could buy into this.

On how it will work, it was learnt that
there is to be an advisory group, which when it identifies a related project, will issue green bonds on such.

Independent groups will buy the bonds, which are to be guaranteed through the stock exchange vis; the Debt Management Office and the Bureau for Public Procurement.

Funds so raised will be channeled in tackling some priority areas, including working with major emitters of greenhouse gases, led by oil and gas, transport, industrial and the power sectors.

According to a recent report by the Ministry of Environment, the need to achieve 100 per cent carbon free environment in most urban cities, with Lagos as a case study, calls for urgent collaborative efforts by the states and federal governments in finding a way of bearing the cost of running carbon-free emittion from urban mass transit, like buses, railway and others.

 

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