Introduction to climate finance in NigeriaClimate finance refers to the funding of activities and projects which aim to achieve progress towards climate objectives. These objectives may focus on:
- Mitigation – to limit or reduce emissions of greenhouse gases (GHGs) to the atmosphere in order to reduce the risks and hazards of climate change; and/or
- Adaptation – to help communities, societies and economies adapt to the adverse impacts of climate change.
Funding needsClimate finance can come from a wide range of both private and public sources and can flow domestically or internationally. Developed countries have made concrete agreements to provide financial resources to assist developing countries in meeting climate objectives, recognising both that some countries have contributed to the causes of climate change more than others and that countries have different capacities to financially contribute towards climate objectives. ‘Developed countries commit to a goal of mobilizing jointly USD 100 billion dollars a year by 2020 to address the needs of developing countries.’ (UNFCCC, 2009) While estimates of the level of investment needed by developing countries varies considerably, it is suggested that these may lie between $180 - $450 billion per year for mitigation and $30 - $100 billion per year for adaptation. Therefore, the likely scale of resources required by developing countries is perhaps around four times that which developed countries are aiming to provide. This has two significant consequences:
- There is and will continue to be competition for scarce international climate finance resources
- International resources will need to be complemented by domestic resources