A recent Sustainable Banking Report by Standard Chartered has revealed that retail investors in Nigeria could contribute $94 billion towards climate change financing by 2030, News About Nigeria gathered.
According to the report, 95% of investors in Nigeria have expressed interest in climate investing, with 91% intending to increase capital flows towards climate-related initiatives.
The findings indicate a growing awareness and commitment among investors to address climate challenges.
The report, based on a survey of 1,800 respondents in 10 growth markets across Asia, Africa, and the Middle East, highlighted the potential for global climate investing, estimating it at $3.4 trillion.
In Nigeria, around $60 billion is expected to flow into mitigation themes, with a focus on renewables, energy storage, and energy efficiency.
Additionally, approximately $34 billion could be mobilised towards adaptation efforts, including resilient infrastructure, the blue economy, and food systems.
Despite the strong interest in climate financing, the report identified various barriers hindering investors from translating their interest into investment.
These challenges vary across investor segments. The report mentioned the need for concerted efforts by financial institutions, regulators, companies, and individuals to establish a broader range of climate assets and drive greater retail participation.
The report recommends that asset managers and banks innovate new climate assets that align with emerging investor interests, such as biodiversity and the blue economy.
Lanre Olajide, Head of Wealth Management and Deposits Nigeria and West Africa at Standard Chartered, commented on the report, saying, “Financing our collective response to climate change is a critical challenge. Overall climate mitigation and adaptation face an annual funding gap of trillions of dollars. Institutional capital is often the focus when mobilising funds to bridge this gap – the scale and power of retail investor capital is a lesser-known opportunity.”
Olajide mentioned the importance of improving access to solutions, harmonising reporting standards, and measuring impact to bridge the current disconnect between investor interest and the scale of climate investments.
