TOLU OYEKAN is the managing director & partner at Boston Consulting Group, Lagos. In this interview with JOSEPHINE OKOJIE on the side-lines of COP27 climate talks, he spoke about the climate change crisis and the role businesses can play in keeping global warming under check at 1.5 degrees.
What is the climate crisis? Why are businesses concerned about solving it?
The world is warming, and we are beginning to see the physical implications of accumulated emissions on human lives, whether through drought, sea level rise, flooding, or extreme heat.
The climate challenge is a significant one that requires an all-hands-on-deck approach, not just for businesses, but also governments and civil society. However, businesses are critically important because not only will their operations, assets, and supply chain be impacted, but they are also core to economic systems and livelihoods. Unlocking private action is imperative in solving the climate crisis. The rest of humanity is also important because it is made up of our parents, children, grandparents, aunts, and uncles. It is the whole of humanity that needs to respond to climate change.
Where do you think Africa is in the actions necessary to accelerate transformative climate solutions?
Africa is not short of acting and just sitting and folding its arms. Incidentally, Africa has contributed the least amount of emissions that are driving climate change but is disproportionately challenged and facing the devastating impacts of climate change. So, it’s not a matter of Africa not acting, it is the burden being borne by Africans, with their limited resources. We, therefore, need a global effort not just an African effort to address climate change.
Interestingly, Africa is acting. Where I live in Lagos, for example, the government has developed a climate adaptation resilience plan which has taken an evidence-based approach to understanding the risks and how they will impact the city. And this is not just at an academic level but at a local government approach. Through a robust analytical assessment, we have estimated that if we don’t do anything the cost of inaction is about $30 billion.
We have also identified specific projects that can be implemented in Lagos to drive adaptation and found that those projects require an investment of approximately $8 billion. The climate challenge is not just an African challenge. We need global cooperation, collaboration, and commitment to address it.
What does the transition to clean energy mean for a country like Nigeria?
We need to build greener. The country is committed to net zero by 2060, and there are activities to ensure that we are building greener. The plan and the narrative of developed countries that have built their entire energy infrastructure and have energy security, and their transition journey will be different from the transition journey of other parts of the world that are still developing, that are still building their energy security infrastructure.
So, yes, we need to build greener in Nigeria and Africa. However, we need to be a bit more nuanced; it’s not going to be the same, and then we also need to adapt at the same time. The challenge would be what are the commitments that we’ve made to transit and what are the right fuels and the right mix of renewables and non-renewables that we need to make that transition?
The climate challenge is not just an African challenge. We need global cooperation, collaboration, and commitment to address it.
What role will technology play in keeping global warming under check at 1.5?
What we have seen globally is that the role of technology is such that it allows us to do things effectively, efficiently, and economically. So, I think broadly, we’ll see a range of technologies emerge to support the climate change journey for mitigation and adaptation for us to understand what’s happening, be able to predict and respond quicker, and implement solutions. I am particularly excited by the early warning systems.
We recently completed some work around human settlements, which we launched with the United Nations high-level Champions in Sharm el Sheikh at COP27. Human settlements will need technology to help anticipate risks and plan adequate responses. Imagine a city like Lagos that is coastal can predict the impact of rainfall or flooding in advance. This will enable the city to build the infrastructure that helps minimize flooding. The role of technology, as we’ve seen it, allows us to do things we could not do before, so it increases our response to success on the climate front.
How impactful would you say these COPs conversations have been over the years?
I would say I have been impressed. This is my first COP, but I have followed along. I’m intrigued by the ability to convene a large group of almost 40,000 people to discuss one of the greatest challenges humanity faces today. I think it is quite impressive, in a single place, people are negotiating and discussing ideas. I think the conversations have been quite action-orientated, but what I think we need post-COP 27 to begin implementing the commitments we have made and the solutions we identified.
I am not talking about the implementation of ideas or initiatives that need to happen in 10 years, eight years by 2030, or five years. I am saying we need to begin implementation now. I am excited by some of these initiatives that have been launched during the COP. For example, I am excited about The Africa carbon markets initiative and the Alliance for Green Infrastructure in Africa.
The Environmental, Social and Corporate Governance (ESG) proposition is a critical discussion in the climate change conversations. How robust is the ESG conversation in Africa, especially in Nigeria?
When I think about ESG regarding the climate conversation, I think about the E and the S. I think the Environment conversations need to be strengthened. Companies need to identify their role in supporting whether it’s the net zero and NDCs commitment by countries or the adaptation that is necessary at the very local level. The CEOs, executives, and boards need to stand firm and come out with their commitments and what they are doing as part of climate solutions.
The S- social is equally important. It is very easy to get technical about climate change and so talk about it as broad ideas. But this is about humanity in human beings, it is about protecting lives. And so, we need to think about how we support the vulnerable, how we support the lives and livelihoods that will be impacted by climate change.
In the coastal city of Lagos, for example, you have a lot of people that live on the coast, sometimes there are informal communities that will be on the frontlines of the impact of climate change. Therefore, we need to be thoughtful as boards, and executives about how we provide solutions, and support, to these vulnerable communities.
Read also: Two major takeaways for Nigeria at COP27
What can Nigeria and the rest of Africa do to meet Sustainable Development Goal 7– that everybody has access to clean sustainable energy by 2030?
SDG 7 addresses energy security, and I think it’s quite an important one because often, in developed parts of the world, when we talk about climate, the conversation doesn’t always focus on energy security. And the crisis that we have in the Black Sea region and the challenges with gas supply to Europe has brought energy security to the fore. In Nigeria, a significant number of its people do not have access to clean energy, whether that’s for cooking or electricity. We need to increasingly build green and sustainable energy.
How do you see the role of top executives in advancing the climate change course?
As I mentioned earlier, climate change is a whole of humanity. It’s all of humanity and that includes: businesses, boards of directors, philanthropists, families, and individuals. Everybody needs to see themselves in those conversations and ask, what is my contribution to a more climate-resilient society?
How would you access the commitment of African governments, especially Nigeria, in implementing its NDCs?
I visited the African country pavilions of Nigeria, Zimbabwe, South Africa, Togo, and others at COP27and there was significant engagement. A lot of African countries were there with delegations and made commitments. This shows Africa is not sitting on the sidelines of the climate conversations but is committed to driving solutions and implementing the NDCs.
What do you think will be the outcome of the COP at the end of the day?
I expect that there will be commitments, new initiatives, innovations, and collaboration to provide climate solutions. We have seen these all week, from different governments, from multilateral agencies collaborating with Africa and other developing countries by supporting them. I do not expect that trend to stop over week two. What I am hopeful for is that we begin to see even more action.
At COP 26, over $100 billion yearly was committed to supporting developing countries to fund their climate journey. However, a lot of that is not deployed yet. And some additional commitments have been made. I am hopeful that we will begin to see implementation because people are being affected and lives impacted.
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