Category: Climate Finance

Adaptation investment planning spur investments in prioritised projects and support the the implementation of adaptation and resilience measures in Africa. In this analysis, Sarah Wewege and Chipo Rusere discuss the advantages of this approach and how it can present a compelling case for investment.

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 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.