Ministry plans climate change trust fund

A NATIONAL funding entity, which aims to develop innovative ways to link international finance sources with national investment strategies, may soon be established in the country.

The entity to be known as National Strategic Climate Change Trust Fund (NSCCTF) will acts as a catalyst to attract investment and to implement a range of alternative financing mechanisms for climate change mitigation and adaptation programmes.

NSCCTF plans to receive non-refundable contributions from bilateral and multilateral donors as well as coordinate Nigeria’s climate change financing through Bank of Industry, which is seeking accreditation to become a National Implementing Entity of the Adaption Fund.

The Minister of Environment, Amina Mohammed who dropped the hint in a message in Abuja, said if these were successful, they would allow a national organization to be responsible for implementing projects from the Adaption Fund.

“The country is realistic about the challenges it faces in undertaking the transformation, in light of both the structure of the economy and the challenges of the recent past. For example, the scale of entrenched corruption in oil and gas is significant, leading to a loss of an estimated $10billion a year.’

To Mohammed, evidence from the World Bank and a variety of scientific and intelligence agencies have revealed the collapse or near collapse of once reliable ecologies leaving inhabitants without sustenance and falling into greater level of poverty caused by climate change.

She noted that these impacts are threatening the livelihoods of Nigerians, adding, acute malnutrition rates are at an emergency level with some3.5million people struggling to have enough to eat. Theirs are climate-sensitive being reliant on adequate and reliable rainfall.”

“Many of these opportunities are likely to be economically viable as the revenues from recouping and selling gas can offset the initial capital technology cost. A low-carbon strategy that focuses on reducing natural gas flaring and capturing the gas for commercial use (in the power and other sectors) could generate as much as $7.5billion.”