Following the agreement of revised targets for the shipping sector, the IMO is discussing the introduction of a global shipping levy. A group of African nations initially came out in support of but then went quiet during negotiations. A recent study anticipates that African GDPs will be significantly impacted by a levy whilst the GDPs of EU and the US stand to benefit.
African governors of the IMF and World Bank met in Cabo Verde to discuss reforms to the global climate finance architecture. Their clearly articulated set of proposed reforms focuses on the need to jointly address global public goods and SDGs, reduce African debt insecurities, and enable a country owned and driven approach.
Having aimed low the Paris Summit for a New Global Financial Pact is difficult to criticise, but if it is to be meaningful, inputs from African countries relating to debt, and the undertakings made by and reforms proposed to global financial institutions including in relation to SDRs and the World Bank, need to be fully implemented.
The AfDB is looking to rechannel SDRs to African countries to free up fiscal space to spend on climate, but progress is slow. The bank is now looking for five developed countries to come forward with pledges
Sovereign Credits present a difficult trade-off between integrity but also being fit for purpose for African countries. Republic of Congo’s Minister of Environment, is calling for the procedures to be revisited.
The World Bank and IMF spring meetings are likely to deal with climate change through the Evolution Roadmap, letting the bank lend more money, and capital adequacy frameworks.
African Countries Again Object to US Attempts to Influence the Strategic Direction of Global Climate Funds
African governments have sought to prevent the US from co-chairing the Green Climate Fund, on the basis that it has failed to live up to its promise to deliver $2 billion in climate finance to the fund. This follows on from the unsuccessful attempt by the US to take part in negotiations on the Adaptation Fund at COP27 last year (which were objected to by South Africa), even though it was not a party to the Kyoto Protocol under which the Fund was established.
In the early hours of the morning on 19 December 2022, the gavel came down on the 15th COP of the Convention on Biodiversity, hosted in Montreal under the Presidency of China. The outcome of the COP is the Kunming-Montreal Global Biodiversity Framework (GBF), the product of more than four years of global negotiations. Some of the debates at the negotiations will be familiar to veterans of the climate negotiations, including on the ambition of 2030 and 2050 targets and their specificity, a lack of finance for developing countries to meet the targets, the ability of states to determine how to meet the global targets through national planning frameworks, the ratcheting of ambition, the protection of indigenous community rights and special dispensations and considerations for small island states and least developed countries. In our analysis we highlight some of the key aspects of the GBF, particularly as they relate to climate, focusing on the main targets agreed to. We also discuss the debates around finance, explaining why the DRC understandably objected to the final package that was presented. Lastly, we unpack the interlinkages between two regimes and how they can learn from each other going forward.
Earlier this month the World Bank released an “evolution roadmap” to change its mission, operating model and financial capacity with a view to expanding its lending capacity to address global crises such as climate change. It intends to negotiate this with its shareholders in April, with a view to it being approved by the joint World Bank and IMF Development Committee in October this year. Amongst various reforms, the Bank is questioning whether climate vulnerability could substitute poverty as a lending criteria. This could mean a new concessional fund that middle income African countries could access on more affordable terms.
Biden Administration Confirms Intent to Invest US55 billion in Africa in the Next Three years, Including in Climate Change
During December’s second US-Africa Leaders Summit, the Biden administration confirmed its intention to invest $55 billion in Africa over the next three years. In addition to finance, the US intends to support Africa’s membership of the G20, something that the African Union has been seeking for some time. G20 membership is an important means to secure influence and progress agendas within climate negotiations. To remain relevant the US will need to ensure that the intended reshoring of clean technology manufacturing and development in America is done in a way that does not alienate its African trading partners. It will need to closely engage with Africa to ensure the latter benefits from the increased export of critical rare minerals needed for the green transition.