Osinbajo Advocates Debt-for-Climate Swap Deal for African Nations

Osinbajo Advocates Debt-for-Climate Swap Deal for African Nations

  • Yemi Osinbajo has proposed a Debt-For-Climate Swap deal to achieve a just and equitable energy transition for Africa
  • The vice president said, if approved, the swap deal would facilitate energy access and the development of African countries
  • Going further, Osinbajo declared that the debt for climate swap deal is a win-win for both creditor/developed nations and Africa

In what can be termed a brave proposal, Vice President Yemi Osinbajo, has called for a Debt-For-Climate (DFC) Swap deal.

This proposal if accepted is expected to significantly advance the course of global net-zero emissions targets, facilitate energy access and the development of African countries.

The vice president made this known during a lecture on a just and equitable energy transition for Africa at the Center for Global Development in Washington D.C.

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Osinbajo proposes swap deal
A Debt-For-Climate Swap deal has been proposed by Prof Yemi Osinbajo
Source: Twitter

In a statement made available to Legit.ng, Osinbajo was quoted to have said:

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“Debt for climate swaps is a type of debt swap where bilateral or multilateral debt is forgiven by creditors in exchange for a commitment by the debtor to use the outstanding debt service payments for national climate action programs
“Typically, the creditor country or institution agrees to forgive part of a debt, if the debtor country would pay the avoided debt service payment in a local currency into an escrow or any other transparent fund and the funds must then be used for agreed climate projects in the debtor country.”

He added that the commitment to it would increase the fiscal space for climate-related investments and reduce the debt burden for participating developing countries.

He added:

“For the creditor the swap can be made to count as a component of their Nationally Determined Contributions (NDC).”

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He added that to make this efficient “there are of course significant policy actions necessary to make this acceptable and sustainable."

Going further, the Vice President also proposed the greater participation of African countries in the Global Carbon Market while exploring financing options for energy transition.

Osinbajo, Sanwo-Olu commend Airtel as telco giant rolls out smartcash PSB

Recall that Legit.ng reported that Vice President Yemi Osinbajo and the governor of Lagos state, Babajide Sanwo-Olu, have hailed the leading telecommunications provider in Africa, Airtel for the launching of its smartcash PSB innovation.

Speaking at the event, Osinbajo, who was represented by the special adviser on social investment (office of the president), Maryam Uwais, appreciated the efforts of Airtel for setting the pace for other telcos to follow in Nigeria.

He said the federal government through the Central Bank of Nigeria (CBN) has developed a model of financial inclusion to ensuring that all Nigerians have access to financial credits and services.

Source: Legit.ng

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