Green Bonds: A Catalyst for Sustainable Development in Nigeria

Abstract

Climate change has become a great concern in the domain of sustainability. Africa is expected to be one of the continents hardest hit by climate change, with an increase in severe droughts, floods, and storms expected to threaten the health of populations and economies. Africa contributes little to greenhouse gas emissions; it accounts for less than 4% of the world’s annual greenhouse gas emissions but will seriously suffer from the undesirable impacts of climate change. Africa is expected to warm up to 1.5 times faster than the global average, with “high confidence” that rising temperatures and unpredictable rains will make it harder for farmers to grow certain key crops like wheat, rice, and maize (corn) according to the UN’s Intergovernmental Panel on Climate Change (IPCC). The IPCC predicts that by 2050, yields for maize in Zimbabwe and South Africa could decrease by more than 30%; these happenings and prediction are huge problems for Africa and Nigeria as well, following the changing weather pattern and flood disaster in the country. High rate of electricity demand with transportation demand by the increasing population of over 180 million people presumes calls for sustainable infrastructure backed up by sustainable finance.

This chapter has drawn upon various reports and experiences across the continent and found criticisms and several solutions to address climate change but affirms that they needed sustainable financing. Green bonds become one of the financing options available to the government, private, and other public entities to address climate change in Nigeria and in Africa as a continent.