International Parliamentary Conference on Climate Change July 2010 The Role of MDBs in Tackling Climate Change Dr. Anthony Nyong African Development Bank
Feb 07, 2016
International Parliamentary Conference on Climate Change
July 2010
The Role of MDBs in Tackling Climate Change
Dr. Anthony Nyong
African Development Bank
Outline of Presentation
Role of MDBs in Financing Climate Change
How Much Climate Change Finance Do MDBs Provide
Constraints and Prospects for Effective Climate Change Financing
The African Development Bank: Rising to the Challenge in Africa
Role of MDBs in Climate Finance MDBs’ mandate on Sustainable Development
is burdened by Climate Change MDBs able to integrate climate across their
strategic priorities, supporting a coherent approach to development.
‘Climate Proofed
Abatements’
AdaptationMitigation
Development
Low Carbon Dev
‘Climate Resilient
Dev‘Climate
Compatible Development’
Source: Catalyst, 2009
Climate Change interventions must be rooted in Development, aligned with mitigation &
adaptation
MDBs’ Response to Climate Change
Increasing climate change analytical, policy and capacity building support.
identified and developed programs to assist developing countries
Provide innovative climate change financing instruments
Leveraging private sector capital
Instrumental to development of carbon markets and reduction of GHG emissions
MDB Climate Change Finance
2007 2008 2009 2010Energy
Lending/ Investments 10 13.8 15.7 16.2Total cost of projects/ programmes supported 24.9 35.8 39.5 42.4Energy Access
Lending/ Investments 2.4 4.4 5.3 5.8
Total cost of projects/ programmes supported 7.5 12.2 14.9 17.4Low Carbon
Lending/ Investments 4.7 7.6 9.4 10.6Total cost of projects/ programmes supported 15.4 28.6 36.2 41.3CTF n.a. n.a. 9 15
How Much is Mobilized (US$ billion)?
Source: MDB Joint Report to the Hokkaido G8 (Richard Stern, 2010)
Regional Distribution of MDB Climate Change Financing
Region 2006 2007 2008 2009 2006 - 2009
Shares 2006 -2009
Africa 0.8 1.4 1.5 1.3 5.0 12%Asia/Pacific 1.2 1.5 4.1 3.7 10.6 26%EMENA 2.6 3.5 3.5 5.3 14.8 37%LACC 0.9 0.7 1.5 6.8 9.8 24%Total 5.5 7.0 10.5 17.1 40.1 100%
Where is the Money Spent?
Regional disparity exacerbated by Focus on Mitigation
MDBs’ Climate Change Financing
Shareholder Capitalization
Replenishment
Concessional Trust Funds
Capital Market
How Do MDBs Generate Climate Finance?
Climate Change merits careful consideration in negotiations on these options
African Development Bank & Climate Change Financing in Africa
Enormous Additional Burden to Development
BUT, Opportunities exist for climate-resilient and low carbon growth in Africa
Climate Change and Africa Cost of adaptation and of putting Africa on a low
carbon growth pathway at about US$22-31 billion per year by 2015, and $52-68 billion per year by 2030.
« Climate-proofing » will add 40% to the costs to meeting the MDGs in Africa.
This would require international financial assistance of some US$ 100 billion a year over the next decade
These costs are low in comparison with the economic benefits of adaptation and mitigation
What Africa Needs to Adapt
Enhancing resilience for future
investment
Social Protection
Accelerated Development Adaptation to
Current Climate (development)
but essential for future resilience
2012 2030
Costs of Adaptation to Current and Future Climate in Africa $Billion per year
Immediate priorities and capacity building
Adaptation to Future Climate
Change$50 Billion.
$40 Billion.
$30 Billion.
$20 Billion.
$10 Billion.
AfDB and Climate Change in Africa
Components of the Strategy
US$ 11 billion Climate Change Investment: 2010-2014
Regional co-generation Initiatives in Eastern and Southern Africa.
Lake Turkana Independent Wind Power project Financed about 100 operations worth approximately
US$ 2.8 billion in the Congo Basin forests (world’s second largest rainforest)
Major analytical pieces of work leading towards an African Green Development Strategy for Africa.
Support to strengthen Regional African Climate Institutions through the ClimDev-Africa Special Fund.
Off-setting of Carbon emissions for Major Corporate Events and travels
MDB Climate Change FinanceExamples of Good Practices from AfDB
Financing Climate Change Interventions in Africa
Africa’s Low Access Rate to Global Resources
AfDB has Comparative Advantages to Host and Manage Africa’s Resources
Africa’s needs are enormous and the AfDB has demonstrated capacity to deliver.
Africa Requires Substantial Resources and Effective Financing Instrument
Conclusion MDBs have an important role to play in addressing
climate change challenges Effective interventions by MDBs depend on availability
of new and additional resources African Development Bank, Committed to helping
Africa address Climate Change Challenges: Competing demands, limited resources
Requires substantial resources to meet the growing demands from Regional Member Countries
Responded to Requests by Africa’s Leadership to Host and Manage the Africa Green Fund.
Created a Department of Energy, Environment and Climate Change and substantially ramped up its capacity
Thank You
For Further Detailswww.afdb.org