Webinar Recording: A POST COP28 DIALOGUE: What are the key takeaways for the African financial Sector?
Climate Change and the African Financial Sector
Webinar series
Making Finance Work for Africa (MFW4A) and Climate Finance and Investment Accelerator Limited (CFIA), in partnership with the African Financial Alliance on Climate Change (AFAC), organized a post-COP28 dialogue where high-level panelists shared their insights and views on the discussions held during the COP events (COP26, COP27, and COP28) and on how African financial institutions can build from them to endorse their catalytic role in climate change. The session was also an opportunity to showcase the initiatives carried out by the institutions represented and identify synergies between them. Exploring policy reforms, market initiatives, and the development of eligible climate change-related pipelines, including incentives and new access classes, to unlock institutional savings and upscale investments in sustainable infrastructure. An esteemed panel of financial professionals evaluated these critical issues.
The event took place online
The slides are available HERE
The Webinar report is available HERE
Since COP26, Africa has received less than 3% of global climate finance. However, the preparedness and absorptive capacity to take own new finance into projects and pipelines are not receiving adequate attention. It is clear that the dearth of project pipelines remains a major gap that must be addressed holistically, including project structuring and readiness to receive investments across multiple climate-related sectors captured in the Nationally Determined Contributions, the Energy Transition Plans, and the Just Transition Plans, as well as countries’ National Adaptation Plans, Just Transition and other plans to support Food Security, Resilience and Energy Access.
The UN's annual climate summit, COP28, recently concluded with both positive and challenging outcomes for the African continent. Noteworthy achievements encompass decisions pertaining to critical areas such as loss and damage, climate finance, adaptation, and food and energy security – all integral to African nations' pursuit of their climate change and development objectives. Despite these strides, it is crucial to recognize that further advancements are imperative to fully align with the financial strategies necessary for sustainable development in the region. The dialogue aims to dissect these key takeaways and shed light on the nuanced financial implications for Africa in the aftermath of COP28
At COP28, an unprecedented sum exceeding $85 billion was mobilized, underscoring the global dedication to restraining the increase in global temperatures to within 1.5 degrees Celsius and mitigating the adverse effects of climate change. This robust financial commitment poses a pivotal inquiry for the financial sector: What implications does this hold for Africa?
The discourse on climate change and development is now inseparable; the two are no longer mutually exclusive. As African countries revise their nationally determined contributions in 2025, elevating ambition in targets for food and energy becomes imperative, all the while steadfastly maintaining a focus on overall development. The challenge lies in synergizing climate action with developmental goals and recognizing the interconnectedness of these realms. The key lies in crafting ambitious targets that not only address climate concerns but also propel sustainable development, ensuring a harmonious and mutually reinforcing trajectory for the continent.