The Securities and Exchange Commission, in partnership with the African Development Bank, has called for increased adoption of green finance as a key strategy to combat climate change and promote a sustainable economy in the country.
The Director-General of the Securities and Exchange Commission, Emomotimi Agama, disclosed this at a capacity-building workshop for capital markets operators on green finance in Lagos on Tuesday.
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 stressed that both the Federal Government and the Debt Management Office have led initiatives to fund afforestation and renewable energy projects, setting a precedent for sustainable development.
He urged businesses to support this transition by diverting from unsustainable practices and adopting green finance principles.
Agama highlighted the importance of involving key stakeholders in discussions that promote green finance, noting that this is a pivotal moment to align investment practices with environmental, social, and governance principles.
Highlighting a promising trend of sustainability-themed funds, he noted that the organisation is committed to driving positive change through green finance initiatives.
“The onus lies with all of us to continue expanding green bond issuances by identifying needs and developing appropriate sustainable financing products,” Agama said.
He urged stakeholders to leverage coordinated policy advice, capacity building, and regulatory support to build momentum for a green economy.
Also speaking at the event, the Executive Commissioner of Operations of the Securities and Exchange Commission, Bola Ajomale, stated that artificial intelligence, machine learning, and big data analytics are essential for risk assessment, monitoring, reporting, and portfolio management.
Ajomale highlighted the use of climate bond certification and blockchain technology as examples of innovations enhancing green finance, stating that these technologies contribute to market analysis and transparency, supporting sustainable investment practices.
“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 remarks, the Executive Director of Climate Transition Limited, Olumide Lala, emphasised converting climate change challenges into opportunities.
He highlighted the importance of capital mobilisation and market development in supporting sustainable goals and fostering 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.