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Multi-source financing best way to tackle climate change

Friday August 28 2015
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Pedestrians cross the flooded Morogoro Road in Dar es Salaam on May 7, 2015 on paid for piggy-back and motorcycle rides. Floods are among the impacts of climate change. AFP PHOTO | DANIEL HAYDUK

As African countries lead actions that aim to mitigate climate change, and eventually contribute to sustainable development, the biggest challenge they face is how to mobilise the resources they need to do the job.

The actions, known as nationally appropriate mitigation actions (NAMAs), were introduced nearly seven years ago as a way for developing countries to commit to and deliver mitigation actions.

At a recent African workshop hosted by Rwanda in partnership with the United Nations Framework Convention on Climate Change (UNFCCC), participants, who included experts, country representatives and international organisations sought ways to mobilise the resources needed to implement projects.

The aim of the workshop was to strengthen the use of NAMAs as a tool for pre-2020 and post-2020 climate change actions. It emphasised the need for financial assistance from developed countries to developing countries to reduce emissions, as outlined in the Kyoto Protocol.

The Kyoto Protocol was agreed in 1997, and is the first climate deal that sets targets for countries to cut greenhouse gas emissions.

READ: Africa’s gas emissions lowest, but it worries most about climate

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Rose Mukankomeje, director-general of the Rwanda Environment Management Authority said the funding question will form a big part of African countries’ negotiations at the COP21 Paris Climate Conference in December.

“Developed nations agreed to reduce emissions through mitigation and adaptation technologies and offer financial assistance,” said Dr Mukankomeje.

“Yes, they may not have funds but we will tell them to reduce emissions because air pollution is as a result of their fast industrialisation and development.”

Annelie Janz, advisor at GIZ, a German international development organisation said that a strong domestic financial sector is key to ensuring that the NAMAs are successful.

“When you look at the sustainability issues, improving the NAMAs and getting more projects on the ground, domestic financial institutions need to be involved,” said Ms Janz.

Liberal Seburikoko, the regional advisor for Africa at the Green Climate Fund (GCF) said governments should look at other financing options and design bankable projects that can attract investments from the private sector.

“The climate challenge is so huge that public finance alone cannot rise to the challenge,” said Mr Seburikoko. “Countries need to start thinking outside the box of development assistance.”

GCF is the latest fund created to combat climate change, and facilitates UNFCCC’s efforts. It became operational in January last year, and has received $5 billion in pledges so far.

Under the Kyoto Protocol, every country is required to set up a national designated authority (NDA) — an institution or focal person — to engage with the funding institution.

Mr Seburikoko said that countries in the region had started the process of securing funding from the GCF.

“Rwanda’s readiness programme has been approved; Tanzania and Uganda have started the process,” said Mr Seburikoko.

The Rwanda Environment Management Authority is the country’s NDA. The Ministry of Natural Resources on the other hand is one of four institutions on the continent that has gained the national “direct access” status through accreditation from the GCF board. This means that it acts as a channel through which the fund can deploy its resources and it can also submit projects which meet the criteria for funding.

The other national accredited institutions on the continent are the Environment Investment Fund in Namibia, Africa Finance Corporation in Nigeria (accredited last month) and the Centre de Suivi Ecologique in Senegal. The UN Environment Programme based in Kenya was also recently accredited.

Countries without direct access to the GCF can apply for funds through accredited international organisations such as the World Bank and the United Nations Development Programme.

Chebet Maikut, UNFCCCs national focal Point for Uganda and the country head of Climate Change Department (CCD) told The EastAfrican that Kampala had identified a number of priority areas for possible support, but was currently seeking funds for the restoration of wetlands. Phase 1 of the proposed project is expected to cost $25 million.

“Negotiations have not yet started as a submission has just been made to the GCF Secretariat,” said Ms Maikut.

The CCD provides technical back up to the Ministry of Finance, Planning and Economic Development, which is Uganda’s NDA.

The first project is expected to receive funds from GCF in November.

In his address to the French Diplomatic Corps in Paris on Thursday, UN secretary General Ban Ki-moon said that a climate agreement must acknowledge the need for long-term, significant financing beyond 2020.

“The Green Climate Fund must be up and running, with funds that can be disbursed before Paris,” said Mr Ban. “Unless the world takes urgent action on climate change, sustainable development will not be achieved.”

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