Lagos targets $50bn investment in 300 climate projects

The Special Adviser to the Governor on Climate Change and Circular Economy, Mrs Titilayo Oshodi, speaking at a side event at the ongoing 31st United Nations Climate Change Conference, COP31, in Antalya, Türkiye on Tuesday. Credit: Office of the SA Climate Change and Circular Economy to Lagos Governor

The Lagos State Government has identified more than 300 potential climate projects with an estimated investment value of between $25bn and $50bn, as it seeks to attract local and international investors to its climate transition plans.

The Special Adviser to the Governor on Climate Change and Circular Economy, Mrs Titilayo Oshodi, disclosed this at the ongoing 31st United Nations Climate Change Conference, COP31, in Antalya, Türkiye.

According to a statement issued on Wednesday by the media office of the Office of the Special Adviser, Oshodi spoke on Tuesday during a panel session titled “Financing Africa’s Climate Transition: The Role of Cities, Business and Capital for Implementation”.

The session, held at the Baku Room of the Sueno Hotels Deluxe Belek Convention and Meeting Centre, was part of the Lagos State programme at COP31, which runs from November 10 to 13.

The programme is expected to end with the Lagos Climate Investment Day on November 13 at the IETA BusinessHub.

Oshodi said the challenge facing African countries was no longer the absence of climate ambitions but the difficulty of translating them into bankable projects capable of attracting public and private investments, creating jobs and stimulating economic growth.

“Africa already has ambitious climate goals. The difficulty is turning them into projects that can attract public and private money and also deliver jobs and economic growth,” she said.

She said achieving this required improved project preparation, clear policy frameworks and credible financial structures that would enable investors to assess risks and returns.

The special adviser identified limited climate finance, weak project preparation, inadequate data and difficulties in demonstrating project viability as recurring challenges confronting subnational governments seeking climate investments.

She said Lagos, as a coastal megacity facing significant climate and development pressures, had developed a State-Determined Contributions Framework to translate Nigeria’s national climate commitments into state-level priorities, targets and investment opportunities.

Related News

• COP31: UN chief demands $1.3tn finance for developing countries
• Lagos offers free HIV tests to workers, trade fair visitors
• NALDA plans electric tractors, solar irrigation for farms

Oshodi said the state had also introduced the Climate Finance Preparedness Clinic and DecarbonIQ to strengthen financial-sector capacity and improve the measurement, reporting and verification of emissions, providing investors with credible data for investment decisions.

She added that the Climate Defence and Catalytic Fund was designed to address early-stage funding gaps and encourage private-sector participation.

According to her, the state’s climate project pipeline covers five areas: clean energy and clean cooking; blue economy, water and resilience; circular economy and industrial decarbonisation; infrastructure and urban transition; and innovation, food and green enterprise.

On the role of public and private financing, Oshodi said government should provide policy direction, infrastructure and catalytic funding, while private investors contribute capital, technical expertise and the capacity to scale projects.

She stressed the importance of blended finance for projects with significant climate and development benefits but high initial costs or risks that could discourage commercial lenders.

“Blended finance matters most for projects with strong climate and development benefits but high upfront costs or risks that put off commercial lenders,” she said.

She explained that guarantees, concessional funding and early-stage support could help reduce investment risks and attract private capital.

Oshodi added that projects needed feasibility studies, clear revenue models and risk assessments before reaching financial close, noting that domestic financial institutions and African businesses also had important roles to play in financing and delivering climate projects.

Asked what changes she hoped to see within the next 12 months, the special adviser called for climate finance commitments to translate into actual investments, with increased domestic funding and stronger support for project preparation and structuring.