Nigeria’s public and private sectors are missing out on significant climate change-related funding due to a lack of knowledge, poor leadership understanding and inadequate partnerships to educate on climate change actions . This oversight not only hinders the country’s progress towards sustainable development but also limits the potential for innovative projects to receive the necessary funding.
The Problem: Lack of Knowledge and Leadership
- Limited understanding: Many Nigerian leaders or project executors lack a deep understanding of climate change issues, sustainable development goals (SDGs), and available funding opportunities as well as their requirements for funding different projects. For any project to qualify for these funding it must be mapped to relevant targets and goals which most times may touch on more that one target.
- Insufficient capacity: Public and private sector institutions often lack the necessary capacity and expertise to develop and implement climate-resilient projects which is why they need that partnership to complement where they lack to ensure that the sustainability element is identified and highlighted on every project.
- Inadequate partnerships: The absence of strategic partnerships with international organizations, NGOs, and private sector entities limits access to funding, expertise, and technology. This is actually the reason that there is so much emphasis on the global partnership as it has a strong bearing on the success of of sustainable implementation.
A typical Case Studies and Missed Opportunities includes:
- Calabar Carnival: This popular cultural event has significant advocacy potential, but its impact could be amplified with proper mapping to relevant UNSDG goals and targets, potentially attracting more funding and support thereby on it own attracting more ESG sponsorship and more funding as well.
- NDDC Projects like Solar Project: The Niger Delta Development Commission’s (NDDC) solar project is a notable initiative, but its impact could be further leveraged by registering it as an effort in adaptation to cleaner energy sources. These projects reduces dependency on fossil fuel and mechanical generators and the carbon footprint reduction should be estimated to establish the carbon credit generated which can be used as offset to high carbon footprint economies.
Also many shoreline protection project are aspect of mitigating the impact of climate change change like the control of flooding due to melting glaciers which finds it way into rivers, streams , pond and oceans. If only these project are highlighted as such, then the NDDC can approach these funding sources for more funding so they can increase the scope and scale of these projects. - Church-led Renewable Energy Initiatives: Many churches have invested in solar and renewable energy solutions, but these efforts are often not recognized as contributions to cleaner energy adaptation for reason earlier mentioned.
The Solution: Building In-House Sustainability Teams
- Engage experts: Public and private sector institutions should engage with experienced professionals to build in-house sustainability teams that can guide their operations and identify these projects and their sustainability elements as well as mapping them to relevant targets there by qualifying these project as sustainability projects.
- Develop capacity: Invest in capacity-building programs to enhance understanding of climate change issues, SDGs, and funding opportunities.
- Foster partnerships: Establish strategic partnerships with international organizations, NGOs, and private sector entities to access funding, expertise, and technology.
Call to Action
- Leaders, take action: Nigerian leaders must prioritize climate change issues and sustainable development goals.
- Build capacity: Invest in capacity-building programs to enhance understanding and expertise.
- Foster partnerships: Establish strategic partnerships to access funding, expertise, and technology.
- Map projects to SDGs: Ensure that projects are properly mapped to relevant UNSDG goals and targets to attract funding.
Summarily,
Nigeria’s public and private sectors has been actually leaving money on the table by the lack of awareness on this subject matter and so there is need to share knowledge and work together to unlock climate change funding and drive sustainable development. By building in-house sustainability teams, fostering partnerships, and mapping projects to SDGs, Nigeria can access the necessary funding and expertise to address climate change challenges and achieve sustainable development goals.
Here are some more information on climate change related funding sources and what they may specifically focus on.
Climate-Related Investments Funding Sources
Climate-related investments have various funding sources, each focusing on specific areas and project types. Here’s a detailed breakdown:
Government Programs
- US Department of Energy: Offers grants for climate change research, decision support, and capacity building activities. Specific programs include:
- Climate Change Research: Supports research on climate change impacts, mitigation, and adaptation.
- Decision Support: Provides funding for decision-making tools and frameworks to support climate-resilient development.
- Capacity Building: Supports capacity building activities, such as training and education, to enhance climate change resilience.
- US Environmental Protection Agency (EPA): Provides funding for climate action plans, pollution reduction grants, and sustainable materials management. Specific programs include:
- Climate Action Plans: Supports the development and implementation of climate action plans at the state and local level.
- Pollution Reduction Grants: Provides funding for projects that reduce pollution and promote sustainable development.
- Sustainable Materials Management: Supports the development of sustainable materials management practices.
- Green Climate Fund (GCF): Supports developing countries in mitigation and adaptation efforts, aiming for a 50:50 balance between both. Specific programs include:
- Mitigation: Supports projects that reduce greenhouse gas emissions, such as renewable energy and energy efficiency projects.
- Adaptation: Supports projects that enhance climate resilience, such as climate-resilient infrastructure and agriculture projects.
International Institutions
- Climate Investment Funds (CIF): Finances climate change projects in developing countries through the Clean Technology Fund and Strategic Climate Fund. Specific programs include:
- Clean Technology Fund: Supports the development and deployment of clean technologies, such as solar and wind energy.
- Strategic Climate Fund: Supports projects that promote climate-resilient development, such as climate-resilient infrastructure and agriculture projects.
- World Bank: Committed to increasing climate finance targets to 45% by 2025, reaching $40 billion annually. Specific programs include:
- Climate Change Action Plan: Supports countries in developing and implementing climate action plans.
- Climate Finance: Provides funding for climate-related projects, such as renewable energy and climate-resilient infrastructure projects.
- African Development Bank: Directed 40% of investment to climate finance, increasing volume from $2.1 billion in 2020 to $3.6 billion in 2022. Specific programs include:
- Climate Change Strategy: Supports countries in developing and implementing climate change strategies.
- Climate Finance: Provides funding for climate-related projects, such as renewable energy and climate-resilient infrastructure projects.
Private Sector Initiatives
- Santander Brasil and BNDES: Backed reforestation startup Mombak with 100 million reais, focusing on carbon removal in the Amazon rainforest. This investment highlights the growing interest in nature-based solutions for climate change mitigation.
- Multilateral development banks: Committed to $180 billion in climate finance at COP28. This commitment underscores the critical role of multilateral development banks in supporting climate action.
Focus Areas
- Renewable Energy: Solar power plants, wind energy, and low-carbon transport projects. These projects are critical for reducing greenhouse gas emissions and promoting sustainable development.
- Adaptation and Resilience: Climate-resilient infrastructure, community-based forest management, and climate-resilient agriculture. These projects are essential for enhancing climate resilience and promoting sustainable development.
- Carbon Removal: Reforestation, afforestation, and carbon capture technologies. These projects are critical for reducing greenhouse gas emissions and promoting sustainable development.
- Sustainable Development: Projects promoting sustainable development, poverty reduction, and climate change mitigation. These projects are essential for promoting sustainable development and reducing poverty.
Project Types
- Large-scale solar power plants: Morocco’s solar power plants, for example. These projects are critical for reducing greenhouse gas emissions and promoting sustainable development.
- Energy efficiency initiatives: Turkey’s energy efficiency projects. These projects are essential for reducing energy consumption and promoting sustainable development.
- Low-carbon public transport systems: Mexico’s low-carbon public transport systems. These projects are critical for reducing greenhouse gas emissions and promoting sustainable development.
- Community-based forest management: Burkina Faso’s community-based forest management projects. These projects are essential for promoting sustainable forest management and enhancing climate resilience.
Reason for Focus
These funding sources focus on these areas because they address critical climate change challenges, such as reducing greenhouse gas emissions, promoting sustainable development, and enhancing climate resilience. By supporting projects in these areas, funding sources aim to drive impactful climate action and contribute to global efforts to combat climate change.