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As part of efforts towards accelerating expansion of sustainable finance in Nigeria, the Financial Centre for Sustainability (FC4S), through the collaborative partnership of FMDQ Group, as well as other key stakeholders in the Nigerian financial market, has kick-started the Nigerian Green Tagging Project (NGTP).
The Green Tagging Project seeks to leverage the work carried out through the development of the Nigerian Sustainable Finance Roadmap to design a reporting framework through which all financial institutions can report, in a homogenous manner, their financing of projects.
Furthermore, the project shall develop a monitoring mechanism which would serve as a transparency tool required to inform regulators of green and sustainably compliant market activities.
This is coming after it had been reported in some quarters that the UN Environment Programme (UNEP) Inquiry into the Design of a Sustainable Financial System has been working with six (6) countries (China, Kazakhstan, Nigeria, India, Mexico and Mongolia) keen to advance their ambitious yet crucial national sustainable finance agendas.
Speaking on this development, Mr. Marcos Mancini, Head, International Cooperation at the United Nations Environment Programme (UNEP) Inquiry highlighted that financial regulators through international platforms like the Network to Green the Financial System (NGFS), the Sustainable Insurance Forum (SIF) and others, have come to realise that climate change can affect the stability of one’s financial system.
He noted that it was an opportunity to continue working closely with FC4S Lagos, to further understand the composition of green and brown assets in banking credit portfolios and to design strategies to catalyse sustainable finance as well as commence charting the path to improve climate-related prudential banking ratios.the Vice Chairman of the Financial Centre for Sustainability, Lagos,
Commending the UNEP, the Vice Chairman, FC4S Lagos, Dr. Doyin Salami, said the Green Tagging is expected to transform banks who are the lubricators of the engine of growth in any economy, think and support projects that assist in maintaining a healthy, low-carbon, resilient and sustainable business environment and economy in the long run.
