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•6 nations attend Abuja confab
From Uche Usim, Abuja
The Central Bank of Nigeria (CBN) has joined the International Monetary Fund (IMF) and other global institutions to sustain the push for higher funding and strategic fiscal policies to help tackle the menace of climate change.
To this end, the CBN is hosting the first African Training Institute/International Monetary Fund (ATI/IMF) workshop on “Climate Change and Macro Financial Policies”, with 44 participants drawn from six countries in attendance.
Speaking at the event, Eva Jenkner, the Director, Second African Regional Technical Assistance Centre in West Africa (AFRITAC West 2), reminded the audience that the United Nations Framework Convention on Climate Change (UNFCCC), in May, issued an alarming report that the world may likely exceed 1.5 degrees Celsius in temperatures by 2027.
She further recalled that in the Africa Climate Summit in Nairobi, regional leaders emphasized the urgency for climate action globally and the need to unlock financing opportunities for African countries, particularly in a context where fiscal space is constrained and vulnerabilities remain elevated.
‘In most of the climate vulnerable countries, the main focus is on adaptation. We need to support policy reforms that enhance long-term resilience to climate change”, she said.
Also speaking at the event, Vimal Thakoor, Resident Advisor, IMF Africa Training Institute emphasized that fiscal and monetary policy wings of African nations have huge roles to play.
“There is a big role for ministries of finance to play. There’s a big role for central banks to play. A lot has to do with the integration of the climate policies in economic frameworks.
“What do I mean by that? Once the Ministry of Environment has identified an economic policy, a climate policy, you want to ensure that the resources are available to finance that policy so they can be implemented to build resilience.
“Similarly, at the level of the Central Bank, climate change poses risks to price stability and financial stability, and being cognizant of these risks will allow the Central Bank to better formulate policies that promote both price stability and financial stability.
“All countries have ambitious policies. The pace at which they are moving reflects a combination of factors, capacity, which is not the same everywhere, and also access to financing, which, as our managing director has articulated several times, is very important to accelerate the implementation of climate policies in the region”, he explained.
