THE FUTURE OF GREEN FINANCE AND SUSTAINABILITY BOND IN NIGERIA: THE CHALLENGES

Abstract

Green finance, green bond or sustainability bond has emerged as a vital financing mechanism to manage environmental impacts of human activities and the expansion of world economy through industrial processes. The massive development of the global economy has resulted in tremendous prosperity and upgrade of living standards in many countries. However, this equally came at a cost seen in severe destruction of the ecological environment, biodiversity, marine habitat and catastrophic consequences for human, animal health and subsistence. Increasingly, many countries attach great importance to achieving “green growth” of their economies while strenuously developing their economies. The green upgrading of traditional industries and the growth of strategic green emerging industries require are testimonies of changing climate in economic and industrial activities in favour of green economy. Although, green financing is fairly new in many jurisdictions and fairly older in other jurisdictions, what is not debatable the momentum and popularity it has been gaining across jurisdictions, issuers and investors. The exponential growth in the jurisdictional recognition and issuance of green bond is matched with institutional endorsement at the highest multilateral levels. The paper adopted doctrinal research methodology and examined sundry ways green bond is good for Nigeria. The paper found that there is urgent need for legislative intervention in this area of environmental jurisprudence.