The Bank of Industry in Nigeria is currently implementing an on-lending financing scheme through local financial institutions to support customers interested in adopting clean energy solutions.
The Chief Executive Officer of the Bank of Industry, BoI, Dr Olasupo Olusi disclosed this during the Joint International CEO Forum of the Association of African Development Finance Institutions AADFI and the Association of Development Financing Institutions in Asia and the Pacific ADFIAP hosted by the Bank of Industry in Abuja, Nigeria.
Dr Olusi who is also the Chairman, Association of Nigeria Development Financing Institutions said this year’s theme, “DFIs’ Strategic Role Towards a Climate Smart Future” is apt, given humanity’s increasing vulnerability to climate change.
According to him, “It is globally recognised that there is an opportunity for climate change mitigation and adoption to become the main driver of economic growth and there is no better time for Development Financing Institutions, DFIs to become the vehicles for this change.”
He explained that there is an expectation of a global surge in investments, renewable energy, energy-efficient projects, sustainable infrastructure, and other environmentally friendly initiatives, hence the need to ensure that institutions on the continent are resilient enough to attract affordable long-term finance through which green projects can be implemented.
“At BoI, we are very active in resourcing climate-friendly funds, including the recent credit line of 100 million Euros secured from the French Development Agency for the expansion of green finance in Nigeria,” he stated.
“To build a climate-resilient economy in developing countries, DFIs must continue to harness their convening power of partnerships and channel public and private investments toward clean and sustainable activities. We must be better coordinated in harmonising our various climate initiatives to ensure significant impact and achievement of economies of scale,” he stated.
The Chairman of the AADFI, Mr Thabo Thamane, explained that, in order to build a climate-resilient economy, DFIs must be better coordinated in harmonising its various climate initiatives to ensure significant impact and achievement of economies of scale.
“Reports predict that if strategic actions are not taken to combat climate change, the world economy will lose more than 18% of its current GDP by 2048, and the least developed countries, particularly those in Africa, Asia-Pacific, and Latin America, will suffer the worst consequences.
“Africa, for instance, is estimated to lose 5% to 15% of its projected GDP by 2050, with a projected climate adaptation cost of $10 to $30 billion annually by 2030 . At the same time, the Asia and ASEAN countries are projected to lose 26.5% and 37.4% of their GDP by 2048 if immediate action is not taken to mitigate the effects of climate change,” he said.
“We are today in a climate emergency and this calls for urgent action from all stakeholders and responding just and equitably. We must sustain efforts in embedding climate-friendly initiatives in our operations for a bright future.”
The Senior Vice President of the Development Bank of Philippines, Mr Ronaldo Tepora who represented the Association of Development Financing Institutions in Asia and the Pacific ADFIAP noted that the forum will delve into key strategies used by development finance institutions to drive a greener and more sustainable world.
“These efforts we know, not only help to reduce greenhouse gas emission emissions, but also to promote long term economic growth, social development and environmental sustainability,” he added.
