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COP28: AfDB releases country reports on climate change finance

In anticipation of the 28th United Nations Conference on Climate Change, the African Development Bank Group has launched detailed Country Focus Reports designed to guide African policymakers.

These reports, tailored to facilitate discussions at COP28 in Dubai from November 30 to December 12, are centered around the theme “Mobilising Private Sector Finance for Climate and Green Growth in Africa.”

The AfDB noted in a statement that the CFRs offer profound analysis and policy recommendations, fostering essential policy dialogues on macroeconomic performance and outlook.

The reports delve into strategies to mobilize private sector and natural capital finance, aiming to enhance Africa’s climate resilience and green growth policies.

The Chief Economist and Vice President of the AfDB, Professor Kevin Urama said they would help evoke “sound, practical and implementable policies” to enhance private sector financing for climate change and green growth.

“As countries prepare for COP28, the reports provide each African country with independent, verified analysis and recommendations for evidence-based negotiations during the global conversation on climate finance and green transitions,” Urama said.

The reports contain several short-, medium-, and long-term policies to accelerate African countries’ economic growth and build resilience to shocks. They provide governments and potential investors with up-to-date, accurate data to inform policy and investment decisions.

The CFRs for 2023, building upon the African Economic Outlook 2023 launched in May and subsequent Regional Economic Outlooks in July, are meticulously designed to impact policy design and future projects and programs in African countries.

The reports aim to rectify information imbalances resulting from generalizations about the diverse African continent.

They outline ways for governments to enhance macroeconomic performance and catalyze private sector and natural capital finance to advance climate action and green growth initiatives.

Further, the document highlights how governments can strengthen macroeconomic performance and outlook and catalyze private sector and natural capital finance to support climate action and green growth initiatives in the country.

These include green bonds, debt for climate swaps, green banks, blended finance, carbon markets, and several other innovative financing instruments.

Urama noted: “Expanding private sector participation in green growth markets requires several policy interventions, including strengthening the capacity to develop long-term green growth strategies.”

He added that this includes the development of appropriate regulations and incentives, supporting project preparation and development, and developing more robust capital markets to support easy entry and exit for domestic and global investors.

“It will require greater use of blended finance, the use of de-risking facilities at scale, and the development of platforms that allow the private sector to invest in a portfolio of green projects, rather than individual projects, to diversify and manage risk,” Urama said.