The Department of Climate Change and Green Growth of the African Development Bank, in partnership with the climate change advisory firm Natural Eco Capital, recently organized two virtual workshops to equip financial institutions and small and medium-sized enterprises to benefit from climate investment.
Companies from six African countries – Angola, Egypt, Morocco, Mozambique, Nigeria and South Africa – attended the workshops. The sessions were delivered under the Bank’s private sector investment initiative for nationally determined contributions in Africa, funded by the Fund for Africa Private Sector (FAPA).
The first workshop, held from 6 to 7 October 2020, focused on practical training for SMEs and financial institutions and how to use two powerful climate change tools developed by the Bank.
Build on the work of the African Financial Alliance on Climate Change (AFAC), the second segment targeted financial institutions on October 8, their role in climate action and methods they can use to incorporate climate change into their financial products.
Al Hamdou Dorsouma, Climate and Green Growth Manager at the Bank, told participants: “Learning how to use the GHG accounting tool and the climate risk assessment and risk management tool will help you as an SME to improve. implement climate action and attract global climate finance, including Bank finance through your local finance institutions. “
At the end of the workshop, the participants selected two actual businesses for climate risks, estimated their carbon footprint and identified climate investment opportunities for them.
The Paris Agreement on Climate Change obliges all countries to submit National Determined Contributions (NDCs) as their commitment to keep global warming below two degrees Celsius. Almost all African countries are required to table their NDCs, which will cost about $ 3 billion by 2030.
At least 75% of the investment needed to implement the climate change requirements is expected to come from the private sector in various key industries. However, private sector participation in climate change initiatives in Africa remains low and needs to be strengthened to take advantage of the abundant opportunities for green investment on the continent.
To attract climate finance to private investment, the Bank has developed four tools to support SMEs and financial institutions: a climate risk assessment and event equipment for SMEs; a greenhouse gas billing tool for SMEs; mainstream climate change credit guidelines (LOCs); and a green work tracking tool. All four tools were launched this year.