Abstract
The need to improve on the use of Fiscal Instruments and engender an improvement in Green Finance remains a challenge in Nigeria. Using the Metcalf’s Framework, this paper explains why Carbon Fiscal Instruments are enforced on emitters to check emissions and their level of effectiveness. Furthermore, a comparative analysis of Nigeria’s performance with some sub-Saharan African countries using the SDGs Index and Dashboard Indicators Framework was discussed. Finally, after appraising the use of Green Finance as a means of innovative finance, the paper found a dearth of fiscal instruments in Nigeria coupled with a low level of Green Finance opportunities. The paper concludes that Nigeria needs to design and implement an optimal climate change fiscal policy and Green Finance mix for Green growth. We recommend that the government needs to encourage creative and innovative ways of generating funds for Green investments in the private sector.
Highlights
Due to the discussion initiated by the Intergovernmental Panel on Climate Change (IPCC) and the Stern Review, on the urgency to cut back carbon emissions (Andrew, 2008), scholars raised the query of whether developing countries ought to follow the ‘grow clean-up later’ path that developed and industrialised countries took (Van Alstine and Neumayer, 2010)
There is the need to assess how Nigeria’s fiscal instruments are used to support the attainment of Nigeria’s Intended Nationally Determined Contribution (INDC) commitments. These instruments would be “killing two birds with a stone” as it would support the realisation of the sustainable development goals (SDGs) on climate action (SDG 13), affordable and clean energy (SDG 7), and industry, innovation and infrastructure (SDG 9) because they all fall under the grow clean policy
As the world progresses from the “action by a few to action by all” by European Commission, carbon fiscal instruments are becoming popular as cost incentives for emissions abatement in Nigeria (Bräuninger et al, 2011)
Summary
Due to the discussion initiated by the Intergovernmental Panel on Climate Change (IPCC) and the Stern Review, on the urgency to cut back carbon emissions (Andrew, 2008), scholars raised the query of whether developing countries ought to follow the ‘grow clean-up later’ path that developed and industrialised countries took (Van Alstine and Neumayer, 2010). There is the need to assess how Nigeria’s fiscal instruments are used to support the attainment of Nigeria’s INDC commitments These instruments would be “killing two birds with a stone” as it would support the realisation of the sustainable development goals (SDGs) on climate action (SDG 13), affordable and clean energy (SDG 7), and industry, innovation and infrastructure (SDG 9) because they all fall under the grow clean policy. Based on the above explanation, this paper discusses the carbon-related fiscal instruments adopted and adoptable in Nigeria as climate change policies.3 It determines whether the country is in the process of realising the above-mentioned SDGs and the paper contributes to the literature by considering the role of green finance and government spending to support climate change mitigation projects in Nigeria. Section five appraises the achievement of SDG 7, 9 and 13 while sections six discusses the supplementary funding efforts through green finance and section seven concludes the paper
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