CTI PFAN Africa Workshop for Adaptation Financing
Africa leads the way in Financing for Climate Change related Projects
Over 80 climate change experts, project developers and investors gathered in Nairobi on 13th and 14th June to launch a new financing initiative of CTI PFAN to mobilise private sector finance for climate change projects in Sub-Saharan Africa.
The new initiative will see CTI PFAN expand its scope of activity to target adaptation projects as well as mitigation projects which have been the main focus for CTI PFAN to date. The new activity will see CTI PFAN support project development and facilitate private sector investment to help African countries adapt to and reduce their vulnerability to climate change. African countries are expected to suffer some of the worst effects of climate change and generally viewed as being least capable of addressing the resulting challenges.
To help countries prepare for climate change, which is already happening, CTI PFAN will target investments in key development sectors of emerging African economies, including agriculture and agri-business, access to energy, water and sanitation, tourism, urban development, microfinance and micro-insurance. Crucially, the new activity will engage and mobilise private sector investment and financing to help identify, develop and implement commercially viable, socially responsible and sustainable projects aimed at reducing climate vulnerability and increasing the adaptive capacity of developing countries. During an initial pilot phase of the new initiative, CTI PFAN envisages leveraging up to USD 22.000.000 of private sector investment and financing for adaptation projects in Africa. In subsequent phases the financing programme will be scaled up and rolled out globally.
This is one of the first multi-lateral initiatives to engage private sector and commercial financing in adaptation activities. CTI PFAN is already active in raising investment for mitigation projects, which seek to reduce CO2 emissions, and has successfully raised almost USD 400 million of investment for clean energy projects in developing countries in Africa, Asia and Latin America, which are already contributing over 293 MW of clean generation capacity and a reduction of 1,7 million tonnes of CO2 pa. A further 160 projects with a total investment volume of USD 4,9 billion are currently in CTI PFAN’s development pipeline.
“This initiative recognises the urgency to address the adaptation needs of those most at risk from climate change. The engagement of the financial resources and creativity of the private sector are crucial to ensuring we successfully address the multiple challenges of climate change and sustainable development in Africa” said Mr. Michael Rantil, Chair of the CTI.
Elizabeth Mrema, Deputy Director of the Environmental Policy Division of UNEP, which co-sponsored the launch event, held at UNEP’s headquarters noted that “Africa, alongside other developing regions requires significant climate finance and investment to address challenges of adaptation”.
Peter Odhengo, Executive Coordinator of the Greening of the Kenya Initiative welcomed the launch of the CTI PFAN financing initiative for adaptation projects and delivered a speech on behalf of Dr. Mohammed Ishakia, Permanent Secretary of the Office of the Prime Minister of Kenya who said that “Financing adaptation to climate change is one of the most challenging issues facing the world today” and commented that the “private sector is expected to play a critical role in achieving the goals and aspirations of ensuring that all-financing access for adaptation related projects”.
Over the two day launch workshop, the assembled climate change experts, government representatives, investors and other stakeholders discussed the structure and focus of the new initiative and ways to maximise its impact. As a result, 5 projects (from Mozambique, Kenya and Uganda), presented at the workshop, were selected to participate in the pilot phase of CTI PFAN’s financing programme.
The launch workshop for the CTI PFAN Initiative on Financing Adaptation Related Projects was organized by the Climate Technology Initiative (CTI) and its Private Financing Advisory Network (CTI PFAN) with the support and sponsorship of the United States Agency for International Development (USAID), the International Centre for Environmental Technology Transfer (ICETT), the Greening of Kenya Initiative (GKI) of the Government of Kenya and the United Nations Environment Programme (UNEP) as Co-Organisers. The CTI PFAN Initiative on Financing Adaptation related projects is sponsored by CTI, USAID, and ICETT.
CTI PFAN is a multilateral, public-private partnership initiated by CTI in cooperation with the UN Framework Convention on Climate Change’s Expert Group on Technology Transfer. CTI PFAN is managed in Africa by PPL International.