CeFTPI, CCAIE plan index to track $20tr climate investment in Nigeria

The Centre for Fiscal Transparency and Public Integrity (CeFTPI) and the Center for Climate Action, Innovation, and Engagement (CCAIE) have initiated the Climate Action Index (CAI), designed to evaluate, rank, and support subnational governments in fulfilling their climate commitments.

Speaking in Abuja during the launch of the initiative, CCAIE Board Chairman Dr. Abel Owotemu disclosed that climate-related investments in emerging markets like Nigeria are expected to surpass $20 trillion in the next five years.

He noted that the CAI is designed to ensure the effective use of climate funds.

Noting that climate finance is critical to achieving Nigeria’s nationally determined contributions under the Paris Agreement, Owotemu said that $20 trillion is a significant amount of funding that the country must not take lightly.

He said, “This groundbreaking tool is designed to ensure the effective use of climate funds, ensure that there is transparency in the use of these funds, and drive accountability across Nigeria, both at the subnational and local levels, because climate change is not only an environmental issue; it goes beyond the damage to the environment.

“It is also a significant economic issue. According to the World Bank, climate-related investments in emerging markets like Nigeria are expected to surpass $20 trillion in the next five years, and $20 trillion is a significant amount of money. It is not funding that should come into our economy without changing our lives for the better.

“In Nigeria, climate finance is critical to achieving our nationally determined contributions under the Paris Agreement. The federal government, under the leadership of the President, has committed to reducing greenhouse gas emissions by 20% in the next five years. Climate finance will play a crucial role in achieving this goal, and for us to succeed, it is important that we can trace what is happening and where the funds are going.

“There is a popular saying that what cannot be measured cannot be managed. We are dealing with adapting to and managing climate change, and if we cannot measure our efforts—particularly when it comes to financial commitments in climate action—we cannot manage it effectively, no matter how much money we invest.

“So, the Climate Action Index is an important step towards ensuring that these climate funds are effectively and efficiently used. By providing a transparent and accountable framework for climate finance, we can unlock more investments, drive innovation, and support resilience in Nigeria. Like I mentioned earlier, climate change is not just an environmental issue; it is also an economic issue.”

In his keynote address, Director General of the Bureau of Public Service Reforms (BPSR), Mr. Dasuki Arabi, disclosed that some countries have made significant progress in climate action by taking proactive measures and making commitments to reduce their carbon footprints.

He noted that the index will help drive accountability, encourage competition, and highlight best practices that can be replicated across the country.

“These countries include Denmark, Sweden, Norway, the United Kingdom, and Germany. Some of the key effects of climate change mitigation include the reduction of greenhouse gas emissions, renewable energy adoption, improved air quality, increased climate resilience, and global leadership influence,” he added. “The Climate Action Index we introduce today is designed as a tool to assess, track, and rank subnational climate efforts. It will serve as a framework to measure how well states are translating climate commitments into tangible results.

“This workshop provides a platform for stakeholders, government representatives, policymakers, researchers, civil society organizations, and the private sector to engage with the framework and methodology of the Climate Action Index.”