Isra-Mart srl : Delta - Pursuing Growth Via Low Carbon Economy

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Delta State Government is pursuing its vision of developing a low carbon economy, and recognises the role for the informal sector. In partnership with the International Chamber of Commerce (ICC), Paris, it organised a roundtable for the Small and Medium Enterprises (SMEs), in Asaba, to brainstorm on the way forward. Victor Efeizomor, who was at the event, reports

The Delta State Government, in pursuing its vision of developing a low carbon economy, and to realise a 'Delta State beyond Oil', has put measures in place to ensure that Small and Medium Entrepreneurs (SMEs), and other stakeholders in the project, are provided with an enabling environment to operate and key into the pilot scheme of the state.

Already, the state has commenced a wide range of developmental projects, programmes and consultations aimed at creating awareness of the need for green economy campaign within the context of the small and medium scale enterprises operating in the state, to present the state green economy initiative to the business community and showcase its relevance in global business examples.

The state's developmental schemes cut across the Micro Credit Finance Scheme, Best Agricultural Guarantee Scheme Fund, Youth Empowerment through agriculture, Delta State Oil Producing Area Development Commission (DESOPADEC) as well as Warri Industrial Business Park and a host of others, are projects aimed at empowering the masses and developing an alternative economy, away from the usual oil and gas, to boost the economic growth of the state.

To this end, a roundtable conference was put together recently in Asaba, the Delta State capital, for experts, academia, top government functionaries and Small and Medium Entrepreneurs (SMEs), and other stakeholders, to brainstorm on options available in developing green business initiatives.

Low Carbon Challenge

The discourse, which centred on the need to develop capacities that will create opportunities for small and medium scale enterprises, also proffered ways and means of taking the advantages of the green economy initiatives, to develop possible financial prospects available locally and internationally in developing green business opportunities.

Providing a basis for such discussions, the Delta State government, in conjunction with the International Chambers of Commerce (ICC) brought experts like the Head of Environment, Indian Chambers of Commerce, Mrs. Soma Mukerji, to speak on 'The Experience of Small and Medium Enterprise Transiting to a Low Carbon Economy and Adopting Appropriate Environment Practice - India Experience'.

Also a partner in Management and Economic Development Associates Limited, Dr. George Okolo, spoke on 'The Challenges facing small and Medium Enterprise Transiting to a Low Carbon Economy' .

The forum also listened to a senior level speaker, Managing Director, Safe Forte Group, Mr. Adesola Adesanya, who spoke on 'The Opportunities for Small and Medium Enterprise in a Low Carbon Economy'.

Governor Emmanuel Uduaghan, who gave an overview of 'Delta Government Green Economy Initiative and the R20 Concept', said the state developmental framework rests on the vision to develop an economically prosperous and well organised state with equal opportunity for all citizens.

This, he said, is to ensure that the state is accessible to all investment and business opportunities and be a driving force in Africa for clean energy and environmentally sustainable policies, as well as pursuing the three point agenda of Peace, Security, Human Capital Development and Infrastructural Development to its logical conclusion.

Govt Initiative

According to Uduaghan, Small and Medium Entrepreneurs form the engine of economic growth in both developed and developing countries as they accelerate rural industrialisation and generate employment and contribute significantly to Gross Domestic Product (GDP). He added that SMEs also contribute significantly to export revenues because of low-cost labour while fostering self- help and entrepreneurial culture by bringing together skilled and capital through various schemes.

Giving a global representation of low carbon economy, Uduaghan opined that the private sector will contribute more than 80 per cent of the estimated 630 million pounces in climate finance.

As part of the measures mapped out to ensure a low carbon economy, the governor explained that the state has created a loan scheme and incentive for green technology, energy efficiency equipment and environmental friendly buildings, as well as ensuring a capacity building for small business owners to proactively embrace energy efficiency, developing appropriate regulations for SMEs going green.

Delta State, he argued, has also developed a feed-in-tariff scheme that will attract more small businesses and technology providers to invest in the state, while the development of a mechanism to analyse energy savings, that can then be used to offset the loan repayment has been initiated. He added that research and development support for small business that wish to participate in the transition to a low carbon economy is already operational.

Identified Benefits

Enumerating some of the benefits and reasons for going green in the state, Uduaghan pointed out that the initiative will at the end of the day create new jobs and business opportunities within the SMEs, enhance state development as well as increase economic growth and improve on the environment, as opportunities for markets in Nigeria and Africa where renewable energy capacity will grow rapidly.

The green economy focus and strategy of Delta State, according to him, is to develop a new economic resources, termed 'Delta State Beyond Oil', grow the state's economy through creation of sustainable and green industries that will sustain food security, encourage public and private investment and ensure energy efficiency methodologies.

"Moving to a low carbon economy is crucial to tackling climate change and ensuring our security, but it is also a transition that can provide opportunities to boost jobs, skills and investment", the governor added.