Innovative mechanisms needed to raise Sh44b climate adaptation funds
Innovative mechanisms to unlock climate financing are needed for Africa to raise $300 billion annually for climate adaptation.
This was revealed during a high-level event cohosted by AfriCatalyst and Open Society Foundations (OSF), which explored how the continent can successfully leverage on debt-for-climate swaps, carbon markets, and green bonds.
In his keynote address, Ibrahima Cheick Diong (pictured), the United Nations assistant secretary general and Director General of Africa Risk Capacity Group (ARCG) stressed on the importance of exploring new paradigms to mobilize finances for climate adaptation.
“It can’t be business as usual - we need to innovate. We need to create a Triple A of climate finance; Adaptability, Affordability and Accessibility of climate finance. I believe that adaptation and mitigation can go hand in hand.”
Speaking at the same event, Vera Songwe, non-resident fellow at Brookings Institute, underlined the need for effective governance and reforming policy frameworks to favor investments in climate initiatives such as renewable energy, green transition, and sustainable public infrastructure.
“Africa needs to get out of its slow growth. We need to ensure that we need to reform the global financing architecture to allow us have funding. Domestic resource mobilization from carbon markets is pivotal. A more transparent carbon market exchange will encourage this. In a perfect carbon market, Africa can earn about $50-180 million,” she noted. On his side, Dr Mahmoud Mohieldin, UN Climate Change High-Level Champion for COP27, called for the African countries to explore their rich carbon sinks to attract more financing through carbon markets.