A two-day meeting kicked off in the Kenyan capital of Nairobi on Wednesday to discuss ways to unlock the climate finance required to accelerate Africa’s inclusive transition to low-carbon economic growth.
The Africa Climate Business Forum brought together more than 100 participants, including government and business leaders as well as multilateral financial institutions from across the continent, to review ways to meet Africa’s climate finance gap.
In his opening remarks, Mary Porter Peschka, the regional director for Eastern Africa at the International Finance Corporation (IFC) which is the private sector arm of the World Bank Group, said Africa needs 190 billion U.S. dollars a year between now and 2030 to fund climate change mitigation measures and another 50 billion dollars annually by 2050 to finance adaptation measures.
“We need to inspire different stakeholders, both local and international, because no institution alone can provide the climate finance Africa needs,” Peschka said.
She noted that the IFC is supporting Africa to expand its pool of climate finance through investing in green bonds whose proceeds will fund viable green projects.
Jamie Fergusson, the global director for climate business at the IFC, said Africa has enormous renewable energy sources such as geothermal, wind, and solar, which can attract climate finance into the continent.
Fergusson revealed that the continent also requires policy and regulatory reforms that will spur the private sector to make investments in projects that are environmentally sustainable.
Ignatius Wilson, the head of Environmental, Social and Governance/Sustainability at the Bank of Ghana, said his country is currently developing guidelines that will provide incentives for the private sector to invest in projects that will reduce greenhouse gas emissions in Ghana.
Maurice Madiba, the head of primary markets at South Africa’s Johannesburg Stock Exchange, said Africa will be an attractive destination for international investors searching for green projects if their capital markets issue joint environmentally friendly debt instruments.