Nigeria and other African countries can become industrial giants, leading other world economies and potentially luring in investments if climate-friendly policies are created, according to Yemi Osinbajo, Nigeria’s former vice president.
Osinbajo, speaking at the 23rd annual S.L Edu lecture titled ‘Greening Africa’s Economies: Can Climate Positive Growth Deliver Prosperity?” Tuesday said adopting green initiatives could lead to job creation, improve livelihoods and eliminate extreme poverty that’s enmeshed the continent.
“If we can produce green products that are competitive, Africa will become an industrial powerhouse.With its vast assets, Africa has the potential to lead the first real industrial revolution. It could be a major sustainable industrial player,” the former vice president said.
“The world needs Africa to develop without increasing emissions to attain net zero by 2050. This can be done on a green path. Climate positive growth will increase job creation, and eliminate poverty. Our economies will do better if we go green,” he added.
The professor of law stated that climate change is evident across the continent as it recorded the highest incidence of drought and second in flooding, emphasizing that in Africa, it’s not just about the climate crisis but endemic poverty which is worsening living conditions.
He added that Africa, a continent with one of the most populous youngest people, is equally suffering from energy poverty with over 600 million households lacking access to electricity, a situation that’s deepened poverty.
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The legal luminary said Africa’s over 65 percent of arable land can be cultivated using sustainable agricultural practice. He noted that utilising green technologies in farming systems have proved to be “hugely cheaper” and affordable, leading to more productivity.
“Ecosystem based adaptation is a climate-friendly way of sustainable agriculture. While minimising environmental impact, Africa has the potential not just to feed itself, but indeed to feed the world,” Osinbajo said.
He highlighted influencing global policies, eliminating legacy issues of accountability and transparency in governance, and collaborating in trade relations as some of the steps to achieving green industrial revolution.
Higher borrowing costs, debt burden slowing climate financing
Osinbajo stated that Nigeria and other African nations face higher borrowing costs due to real and perceived risks which cancel out its natural advantages in securing climate-friendly industries.
He stated that the Climate Action Platform for Africa, for example, found that just a 20 percent higher cost of carbon over the past decade resulted in a missed opportunity of 27 terawatt hours of renewable energy.
“In other words, if we had the advantage of not paying 20% more borrowing costs, we would have been able to produce 27 terawatt hours of renewable energy. So that was lost because of the high cost. The cost of borrowing in Africa can sometimes be five times higher than if you are borrowing from other regions,” the Senior Advocate of Nigeria said.
Highlighting some of the challenges that are hindering climate positive growth, Osinbajo said most African countries are burdened with debt, which is limiting funding into sustainable initiatives.
“The Debt Relief for Green and Inclusive Recovery, that’s another initiative, which is now supported by 41 former African finance ministers and central bankers, proposes debt reduction that can restore financial stability while allowing countries to invest in sustainable development,” he said.
He stated that African leaders must source for climate finance through new funding mechanisms, such as carbon pricing, climate deliverance, taxation, and also generate additional investment.
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The revered climate advocate identified failure to recognise and adequately compensate countries that commit to preserving critical ecosystems for the benefit of the world as challenges to accessing funding, calling for a paradigm shift.
“There’s also a very important point about reviving Africa’s natural wealth. Africa’s economy is undervalued because it does not account for its vast ecosystems, including forests and wetlands, which have absorbed huge amounts of carbon dioxide.
“So there is an argument, and I think it’s a valid one, that Africa’s natural capital should be formally recognized and monitored. And I think it’s only fair that countries I think what this is saying is that if we do so, we would allow African countries more access to funding for green development,” he said.
Osinbajo however urged African leaders to focus more on green opportunities; provide a strong African capital market and climate-resilient infrastructure to grow economies and position them as the world’s sustainable industrial powerhouses.
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