House of Reps Urges Federal Government to Explore $23bn Climate Investment Fund

The House of Representatives has called on the federal government to explore opportunities in the climate investment funds which was estimated at about $23 billion presently.

The resolution of the House followed the adoption of a motion moved at the plenary on Tuesday, by Hon.  Daniel Amos.

Moving the motion, Amos said the African Carbon Market Initiative estimates Nigeria could generate more than $500 million annually by 2030 while supporting over three million jobs through reduced carbon emissions.

He noted Nigeria is a signatory to the 2015 UN Climate Change Conference (COP21) Paris Agreement, which was ratified in 2017 and formulated its Nationally Determined Contributions (NDCs), announced its net-zero commitment by 2060 in 2021, following the enactment of the Climate Change Act.

Amos argued that investments in sustainable green projects would create jobs, stimulate innovation, and contribute to Nigeria’s economic development, an estimate of resources pledged to major climate change advocacy organisations such as the Green Climate Fund, the Global Environment Facility, the Adaptation, and the Climate Investment Funds puts the total value of Green Funds at $23bn for 2024.

This, he said, excluded other sources of finance, such as bilateral and multilateral aid, private sector investment, and domestic resources.

The lawmaker stressed that carbon credits represent one metric ton of carbon dioxide (Co2) or Greenhouse Gas (GHG) emissions removed from the atmosphere.

He explained that the global value of the voluntary carbon market was estimated at about $2 billion in 2022 and was widely expected to grow by a factor of at least 15 by 2030, as governments and companies seek to use offsets to help achieve net zero emissions targets.

The House, therefore, urged the National Climate Council to mandate all Ministries, Departments, Agencies, and Companies establish and effectively implement sustainability plans.

The House also advocated the creation of a separate budget envelope annually based on green funds secured from development partners, and multilateral agencies and distributed to the aforementioned MDAs.

It further mandated its committees on Climate Change, Renewable Energy, Environment, and Ecological Fund to work with the Executive to educate citizens, companies, and MDAs to embrace sustainable practices in the design and execution of its projects and programs

It also mandated the Committee on Appropriation to work with the Ministry of Budget and Planning to incentivise MDAs to adopt sustainable practices to ensure that Ministries, Departments, and Agencies (MDAs) with sustainable practices and carbon credit potentials given additional funding above their budget envelopes with effect from 2025 budget estimates, with carbon credit potentials and programs established at conception and submitted to the Federal Executive Council (FEC).

Adedayo Akinwale

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