The United Nations Climate Change Conference held in Copenhagen, December 2009 ended in the so-called Copenhagen Accord. This Accord is a far cry from the expectations of most developing countries including Nigeria.
The Copenhagen Accord recognises the need to keep global temperature increases to below two degrees Celsius. However, it does not commit nations to specific timelines for achieving this. Even more disappointing is the amount of financial resources pledged to assist developing countries to adapt and mitigate climate change.
The Accord promises $30 billion new and addition resources from 2010-2012 and $100 billion a year by 2020 to address developing countries’ needs. It also establishes a Copenhagen Green Climate Fund as the main channel for delivering finance.
These well meaning but half-hearted pledges are simply not sufficient to address the disastrous consequences of climate change in countries like Nigeria. It is even more disappointing that the promised funding may never become a reality since the Accord is not legally binding.
More so, the Copenhagen Green Climate Fund may not be under a transparent and democratic management of all parties to the Accord. Developed countries insist on using the World Bank, an institution that these countries dominate.
The transition to a low carbon economy in Nigeria will require significant financial resources. We had hoped for a more ambitious agreement on climate change financing. For instance, ending gas flaring in Nigeria will require tens of billions of dollars worth of investments in gas infrastructure and market development. Likewise, combating desertification in the North demands huge financial resources. The pledged resources in Copenhagen are insignificant matched with the enormity of these national challenges.
We had also hoped for a reform of the Clean Development Mechanism to allow Nigeria participate in this important market for our emissions. Nigeria also negotiated for a compensation mechanism for lost income. Nigeria would lose significant petroleum export revenue as other countries implement policy measures to tackle climate change.
Nigeria must continue to demand a just compensation from the international community. However, this will only be supplementary to domestic financing. We must begin to tap into sources of local funding including the financial market as well as public funding.
This is particularly important in meeting the financial challenges of the transition to lower carbon energy sources such as gas and renewable energy. To unleash this potential of private sector funding, we must return to the reforms of the power sector.
Above all, Nigeria requires stronger policy frameworks and institutions to address the challenges of climate change. It is important that policy makers begin to see opportunities for jump-starting the economy by focusing on low carbon sectors. New policy frameworks such as vision 2020 and the seven Point Agenda must give priority to this new reality.
Nigeria requires a clear climate change policy that stimulates economic growth and manages the risk of the impacts of climate change. To achieve this, there is need for an institutional champion. The Climate Change Commission Bill has been passed by the National Assembly. This must be promptly harmonised and accented to by the President.
Other policy instruments that will assist Nigeria to access the pledged funds include, a REDD Readiness Plan which provides strategies for managing forests resources and land, degradation. We must expedite action to pass the Clean Energy Bill currently under discussion. It is also important that Nigeria develops a comprehensive carbon market transformation initiative that allows us to benefit from the over $200 billion global carbon market.
The Copenhagen Accord presents great opportunities for Nigeria to leverage funding for key national projects, especially in the energy sector as well as address major environmental problems. This can only be achieved through the development of clear policies and stronger national institutions.
