1

2

3

Presentation Outline

Scaling Climate Action Through Climate Technology and Innovation

Climate Screening and Opportunity with GHG

4 33

Guidelines on

Mainstreaming

Climate Change

into Lines of Credit

Africa Green

Jobs Tracking Tool43 61

4

Scaling Climate Action Through Climate Technology and Innovation by Small- and Medium-sized

Enterprises (SMEs) in African

By

Dr. Eugene Itua

Sustainability and Climate Change Expert

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44 (~81%) submitted their Nationally Determined Contributions (NDCs) as part of their commitment to keep global warming below 2oC.

Introduction

6

• Most African Governments have shown unmistakable commitment and enthusiasm in the roll out of their NDCs implementation

&

• Progress being made in advancing their NDCs implementation

7

“National governments cannot do it alone. Everyone—including those at all levels of

government, as well as business leaders, investors, and civil society—must contribute.

United States Council for International Business (USCIB)

Recognition

88

Where will these resources come from?

Meeting the Obligations of the NDCs

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The financing required for an orderly transition to a low carbon, resilient global economy must be counted in the trillions, not billions

9

Private Sector to the Rescue

9

Projections indicate that about 75% of this investment will come from the private sector

10

Who is in the Private Sector?

Private sector

Formal large-business sector• relatively healthy

• productive

Small-business sector• Massive• insufficiently understood • poorly supported, • Yet supports the majority of workers

Involving the SMEs in Climate Action

11

• The strategic and well-informed inclusion of the private sector, especially the Small- and Medium-size Enterprises (SMEs) in climate change adaptation and mitigation planning and activities must be a key part of efforts to meet the NDC targets.

Their nimbleness makes them instrumental in increasing adaptive capacity.

12

So by all accounts,

in engaging the private sector for in climate-smart

investments to support the various countries to meet their

NDC targets,

the SMEs must be seen as the cornerstone to grow climate

business opportunities in Africa

Engaging Private Sector in Africa-Recognition

13

Domino Effect of Private Sector

•Opportunity to ensure sustainable development and boost low carbon economic growth:

•new jobs, •economic savings, •competitiveness and market opportunities, and •improved wellbeing for people with even greater investment, innovation, and growth potential ahead.

14

• Private ownership,

• Entrepreneurial spirit,

• Flexibility and adaptability

• Potential to react to challenges and changing environments,

• Contribute to sustainable growth and employment generation in asignificant manner.

• Play a significant role in national economy by• providing various goods and services,

• developing regional economies and communities,

• helping the competition in the market and

• offering innovation.

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Characteristics of the Small- and Medium-size Enterprises (SMEs)

15

• Awareness about the Paris Agreement, climate change, and NDCslow, which provides a significant barrier to move forward withconcrete action

• Capacity to transform NDC implementation plans into investment-ready projects is low

• Capacities to develop appropriate financial proposals or requestsfor funding assistance from different sources and for the specificsectors identified in the NDC is low

• Support to create pilot projects that demonstrate new investmentschemes to accelerate adaptation and mitigation actions low.

Current Situation of Private Sector with Regard to NDCs

16

Current Situation of Private Sector with Regard to NDCs

Turning the Tide

17

• Addressing the risks and opportunities facing the SMEs with user friendly toolkits for screening and identifying climate actions

• SMEs need information and tools to achieve this, and financing institutions, such as the AfDB and AFAC members need insights and tools that enhance their understanding and knowledge of private sector climate action, and its progress.

18

SCALING CLIMATE ACTION THROUGH CLIMATE TECHNOLOGY AND INNOVATION BY SMEsUnder

Private Sector Investment Initiative for NDCs in Africa

• Support the African private sector and SMEs to assess climate risks and opportunities for NDCs and green investment.

• Develop climate change screening toolkits for SMEs to mainstream climate change in key sectors;

• Develop a practical working material to support SMEs analyse climate change risks/ opportunities and generate strong adaptation strategies;

• Raise awareness and strengthen the capacity of SMEs to identify incremental cost due to climate change and identify climate finance and climate innovation opportunities;

• Support the AfDB and FAPA members to mainstream climate risk through lines of credit and develop toolkits for their staff, especially Investment Officers.

• Angola • Egypt • Morocco

• Mozambique,• Nigeria• South Africa

TURNING THE TIDE

19

SCALING CLIMATE ACTION THROUGH CLIMATE TECHNOLOGY AND INNOVATION BY SMEsUnder

Private Sector Investment Initiative for NDCs in Africa

The Suite of Tools Under Development

20

Tool Purpose and Users

1. Climate Screening and Climate Opportunity Tool

Sub-tool 1: Opportunity assessment tool

Aligns private sectors, SMEs and business opportunities with key industries/sectors targeted by African countries intheir NDCs/SDGs/other climate actions, the AfDB and AFAC for adaptation and/or for carbon emission reductionstrategies.

Targeted at businesses, AfDB and other funders

Sub-tool 2: Climate risk and vulnerability screening tool

Identifies climate risks and assess the potential of business ideas/products to overcome/mitigate against the highestrisks.

Targeted at businesses, the AfDB and other funders

Sub-tool 3: Cost-benefit analysis tool

Enables private sector/SMEs to carry out cost/benefit analysis to determine incremental cost and benefit/opportunitiesfrom climate change

Targeted at businesses, the AfDB and other funders

Sub-tool 4: Finance analysis tool

Enables SMEs to identify appropriate sources of funding for their adaptation or emission reduction strategic businessopportunity, and/or their risk mitigation strategy

Targeted at businesses

2. Guidelines on Mainstreaming Climate Change into Lines of Credit

• Builds on the work of AFAC on climate screening and assessing green investment• Enable the inculcating of climate change protocols and criteria in AfDB’s lines of credit. Targeted at Task Managers

3. Africa Green Jobs Tracking Tool

Provides a typology of green jobs, Allowing AfDB to classify and track green jobs and progress in increasing green jobs and improving green skills, throughout its operations and

funded initiatives Targeted at as a continent-wide use tool

Usefulness of the ToolsProvide practical and technical solutions to:

• identify risks and risk mitigation strategies for business operations (from both a climate adaptation and mitigation perspective), with a view to both de-risking the business and the financier from climate impacts;

• identify business opportunities that arise from proactive participation in climate action;

• to strengthen business planning alignment with available funding, and;

• to enhance in-country capacities and enabling environments to attract investments from a wide variety of sources.

21

Builds on the work of

• African Financial Alliance on Climate Change (AFAC) aims to put the financial sector actors at the centre of climate action.

• Help members design solutions and mobilise private capital for climate action through the following objectives:

• knowledge sharing, • climate risk-mitigating financial instruments, • climate risk disclosure, and • climate finance flows.

22

Through this initiative, climate change is addressed both as a risk and an opportunity.

23

But Why New Tools?

• In the market place are numerous tools, frameworks and guidelines exist

• These tools have the potential to be adapted for the SME audience, butthey do not seem to address the needs and circumstances of the AfricanSMEs:

• Some are designed for donor programming or public finance drivenclimate change initiatives;

• Others focus primarily on climate risk screening leaving out climatebusiness opportunities.

• The complexity of others and resource constraints, exclude the SMEsfrom using them

• The Climate Risk Management and Adaptation

(CRMA) of AfDB

• reduce vulnerability in Regional Member Countries

(RMCs) by promoting climate resilience in Bank-

financed development investments, as well as build

knowledge and capacity within RMCs to tackle

climate change challenges and promote

sustainability through regulatory and policy reforms

• The Bank’s Climate Change Action Plan (CCAP) falls

under the strategy

• aims to promote low-carbon development and a

climate adaptation strategy that builds adaptive

capacity in RMCs and promotes climate-proofed

investments.

• These two aim to mainstream climate screening and

adaptation measures into Bank projects.

• Meeting the Bank’s strategy, Climate

Safeguards System (CSS) and Additionality

and Development Outcomes Assessment

(ADOA) Framework

• useful tools and guidance for developing

sustainable projects where climate risks are

managed, and climate adaptation

opportunities are maximized.

• CSS focuses on the public sector

• ADOA, though private sector focused,

mainly assesses development, not

climate change. • Both are used by Bank staff and not private sector/SMEs

themselves which is the focus of these new tools.

24

But Why New Tools?, cont’d

• ADOA framework has no methodology for keeping close engagement with the FIs after establishing LOC.

• The new guidelines

• strengthen the financial additionality drivers in the ADOA framework

• AfDB has the Green Growth Framework (GGF) to support African countries in gradually transitioning to green growth.

• Lacks a tracker for identification of green jobs as an integral part of co-creating bankable climate action and providing security for private sector/SMEs support is missing.

• The new Green Jobs Monitoring tool for Climate Action Projects will support the Bank and African countries to track green jobs through:

• a proactive and an interactive platform that harmonizes different green opportunities for youth and women

• a network of green entrepreneurs and the direct and indirect jobs created because of the supported climate resilient enterprises and projects

25

But Why New Tools?, cont’d

Provide a suite of SME-specific tools:

• that will enable SMEs to make quick decisions concerning their business risks,

and/or the potential of a climate driven business idea or project prior to developing a

detailed business design and strategy.

• Simple enough to use compared to the available complex tools, designed for donor or

public finance driven climate change initiatives, which largely exclude SMEs

because of resource constraints

• address the needs and bridge the existing gap between AfDB CSS and ADOA with

elements that relate to the private sector/SMEs throughout the business process (and

not only at the concept stage), in order to develop businesses/business ideas that are

climate resilient and attractive to climate investors throughout the project life cycle.

26

But Why New Tools?, cont’d

2727

Developing the Tools & Meeting the Training Needs

Economic Complexity

Methodology-

• Identifies entry-points of SME potential based on existing capabilities in an economy

Risk & Vulnerability Assessment of

SMEs-

• To overcome/mitigate against the highest risks and to assess business potential

Political Economy Analysis-

• Barriers/enablers to identify opportunities and alignment with NDCs, etc.

Cost-benefit Analysis-

• Feasibility check

Co Creation – Innovative Learning Techniques – Adaptive Management

28

Understanding and Using the Tools

• Tools will be tested in the six pilot countries.

• Training will also be provided to:• enhance skills of SMEs on the tools and• how to integrate climate change measures in the

design, financial structuring and analysis andpreparation of compelling project proposals inbusinesses that facilitate low-carbon and climateresilient development

292929

This Workshop

• Present the draft climate screening and assessment toolkitswith their guidelines developed in support of the SMEs inAfrica, AfDB and FAPA members to the relevant stakeholders.

• Validate and re-inform the tools and associated trainingmaterials with views obtained from the stakeholders to ensuremore robust toolkits that meet and align the needs of theSMEs in Africa, AfDB and FAPA members.

30

The Consultative Workshop Charge

• For the African continent, are you

• part of the evolving global climate finance architecture?

• interested in significantly raising the share of climate finance in investments?

• interested in seeing SMEs support Governments achieve climate commitments, share best practices, prompt positive competition, and improve their confidence that ambitious climate targets are credible and achievable?

Then support this strategy for risk-rewarding metrics towards low-carbon and climate-resilient investments

Conclusion

“As the continent most vulnerable to climate change, we can only thrive if we set our economies on a low-carbon and climate-resilient development trajectory. The smart choice is to rethink how we deploy capital in a changing environment.”

31

- AFAC Steering Committee Co-Chair Dr. Uzziel Ndagijimana; Minister of Finance and Economic Planning, The Republic of Rwanda

These tools and guidelines are instrumental in defining the pathways which direct efforts, activities, projects and financial flows towards

Africa’s NDCs and SDGs and other climate objectives and targets.

3232

Thank You

Email: afdbsmeproject@ecopital.com www.ecopital.com

Toolkits on Climate Screening and Opportunity

with GHG Accounting

by

Belynda PetrieClimate Finance and Risk Expert

Objectives and Benefits

Specific objectives:

• Deepen the understanding of business of climate change and climateaction from risk, opportunity and implementation perspectives

• Capacitate businesses to integrate climate action into business ideas,risk management and growth

Benefits for Africa and for SMEs:

• Through enabling climate action in a larger section of nationaleconomies, substantially scale up national climate action across Africa

• Increase SME access to climate finance

• Enable a ‘new’ market for AfDB products and climate investments

Overview of the Toolkits and Guidance for SMEs

• The Toolkits Contains a step by step guide in using each of the tools.

• The Toolkit training manual provides a set of guidelines and information intended to equip userswith the knowledge and skills to use the tools developed.

• Aims to help businesses understand how climate change risks affect businesses in general andthe potential opportunities for business growth that exist in the climate change space.

• Ultimate goal: Help to position businesses competitively in current and future markets, andensure greater access to sustainable finance and business opportunities

• Augments the AfDB tools by focusing on SME application

Climate change poses serious risks to businesses (productivity losses, cost of regulation and insurance, damage to/loss of business opportunities). However, SMEs are well-placed to overcome and adapt to these

risks given their agility and flexibility- potential to capture new business opportunities and develop innovative solutions to climate change challenges.

Target Audience

For entrepreneurs at the beginning of the business development phase, these tools will

aid in thinking through potential business ideas in terms of climate change risks and costs,

and in identifying sustainable business opportunities that align with green financing objectives.

For businesses further along the business continuum, these tools will still prove useful in

considering the impact of climate change to the business and the associated costs of taking

action to overcome or adapt to such impacts. It will also help businesses to identify future

opportunities that will help to reduce the impacts of climate change or assist in coping with

these impacts.

For the AfDB, these tools will assist in vetting SME green finance applications and aligning

these with AfDB climate change objectives

Climate Risk Screening and Opportunity Assessment Toolkit

Specifically, the purpose of these tools is to:

• Enable businesses to identify and develop sustainable business ideas and initiatives that align with nationalclimate change strategies and objectives, climate financing criteria and country sustainable developmentobjectives, to increase their probability of receiving climate financing;

• Climate proof their businesses as appropriate in terms of climate risks for long-term sustainability andgrowth and;

• To integrate climate response strategies into business operations and to account for achievements madeeach year of the business lifecycle, thus enhancing the preparation of bankable businesses in the greenspace and increasing access to climate finance.

This toolkit will start with a landing page that will explain the purpose of these tools and the steps to take asoutlined below.

Step a: Screen for current and future

risks

Step b: Screen the business idea for climate finance opportunities

Step c: Assess the alignment of the

SME with priority CC sectors and goals

STOP/GO POINT: Determine if worth conducting a more

detailed risk or opportunity assessment

Step d: Identify risk reduction

strategies/emission reduction strategy

Step e: Identify strategies for

operationalising the identified business

opportunity

STOP/GO POINT: Determine if the

climate adaptation or emission

reduction risk strategy or the

opportunity strategy is worth pursuing

Step f: Calculate the incremental costs and

benefits of the identified climate

action(s) and identify appropriate funding

sources

STOP/GO POINT: Determine if the

risk/opportunity/emission reduction

strategy actions(s) should be

implemented and financed

Step g: Apply the Finance

Opportunity Checklist

Apply the GHG Accounting Tool

(Part B)

GHG Accounting Toolkit

Specifically, the purpose of this tools is to:

• Estimate the GHG reduction potential of the business

• Determine how their business will reduce GHG emissions or increase carbon uptake

• Calculate the estimated GHG reductions or carbon uptake of the business

• Identify and apply the most appropriate methodology for measuring reduction units in

tonnes of CO2 equivalent, and in units of time in years

• Perform business and economic analysis and modeling in relation to mitigation

planning and projects

• Perform ongoing technical analysis to refine their mitigation strategies

through information and recommendations provided

Step a: Consolidate the baseline Step b: Emissions calculations Step c: Reporting

Associated Training

Specifically, the purpose of the training is to:

• Train users (SMEs and AfDB staff) on toolkit objectives and application

• Determine when and how to use the tools

• Increase access to climate finance

Training will be conducted in the six project pilot countries:

• Angola

• Egypt

• Morocco

• Mozambique

• Nigeria

• South Africa

Six Training Modules

1. Climate risk screening – what are the climate risks for business? (2 hoursonline)

2. Climate action – what are the opportunities for businesses and entrepreneurs?(2 hours online)

3. Climate change mitigation – how are greenhouse gas emissions relevant tobusiness? (2 hours online)

4. Greenhouse Gas Accounting – what methods are available for businesses toapply? (2 hours online)

5. Accessing climate finance – opportunities and pitfalls for small business?

(2 hours online)

6. Climate Change Tools Application – why, when and how to use the tools?

(2 hours online)

Participants’

Thoughts on the Toolkits on Climate Screening and Opportunity with GHG Accounting

4242

Thank You

Email: afdbsmeproject@ecopital.com www.ecopital.com

Guidelines on Mainstreaming Climate Change into Lines of Credit

Presentation By:

Dr. Jubril Adeojo

Outline

The Rationale

AfDB’s Climate Finance Milestones and Commitments

The Objectives

Theory of Change of the mainstreaming guidelines

The 3 Pillars of the mainstreaming guidelines

Rationale for the Mainstreaming Guidelines

Additionality and Development Outcomes Assessment

Framework

(ADOA)

• Financial additionality drivers are centered on vanilla LOC creation

• No alignment with climate actions and goals for Africa

• No strategy on post-LOC scalability

• Climate outputs are not included in the result based reporting framework (i.e. volume of GHG emission reductions)

Green Growth Framework

(GGF)

• No strategic demonstration of climate finance and climate action integrated into the LoC

• The green growth initiatives/programmes of the Bank and in conjunction with FIs are not strongly aligned with specific and measureable climate goals (NDC targets)

• Very macro overview of importance of climate finance & blended financing mechanism.

African Financial Alliance on Climate Change Principles

(AFAC)

Climate Change Action Plan (CCAP)

• Very high-level overview of the climate change risk and climate actions on Africa

• Demonstration of AfDB’s commitment to climate risks, actions and finance in investment and strategic decisions

• Limited granularity in the application and mainstreaming guidelines into the investment and strategic decisions

Gap Analysis of Existing Related AfDB Tools

AfDB’s Climate Finance Milestones & Commitments

• Under the CCAP, the Bank has committed toallocate 40% of approvals per year — as climatefinance by 2020, cumulatively investing about

USD 16.8 billion by 2022.

• In 2015, $500m Green Bond was issued

• Setup, co-implementing and leveraging a numberof climate action related structured impact fundsfor Africa

Objectives of Mainstreaming Guidelines

Leverage green LOC to mobilize private sector funds globally is inresponse to the dire sufferings of the ecosystems from the effects ofclimate change (adapting) as well as mitigating.1

To strengthen the Bank’s green bond programme so that the greenbond proceeds can be applied to establish/float green LOCs approvedfor different eligible FIs across Africa.2

To prepare and support African countries via private sector engagementtowards the implementation of the NDCs leveraging financial and non-financial resources/instruments.3

Aligning closely and strategically with specific NDC targets (climateactions) across various economic sectors of African countries where theparticipating financial institutions (FIs) operate in and intends to utilizethe LOC proceeds.4

Build the capacities of financial institutions and SMEs to accelerate theadoption of climate action and finance across Africa.5

Harmonization of all existing related tools and frameworks of the Bankfocused on climate actions, and development impacts – SDGs.6

Objectives of the Mainstreaming Guidelines (Cont’d)

Theory of Change of the mainstreaming guidelines

High 5 Priorities: Feed, Industrialize, Integrate, Light Up & Power, and Improving the lives of people in,

Africa

National Development Plan Framework

SME Sectors Industries

Sustainable Power/Energy

Agriculture Value Chain Transportation

Information, Communicati

on & Technology

(ICT)

Nationally Determined Contributions (NDCs) = Greenhouse Gas Emission Reduction Targets; Mitigation and Adaptation Actions across various sectors

Economy Decarbonization Pathway

SUSTAINABLE DEVELOPMENT GOALS

LINE OF CREDIT

Mainstreaming additions

3 Pillars of the mainstreaming guidelines

PILLAR 1

• Guidelines for the LOC Climate Action Taxonomy

PILLAR 2

• Climate Risk Management Procedures for the LOC

PILLAR 3

• Technical Assistance for Capacity Development for Financial Institutions and SMEs

PILLAR 1: Guidelines for the LOC Climate Action Taxonomy

Climate Change

Global Warming

Causes:Greenhouse Gases (GHG) emissions

from Carbon dioxide; Methane, …

Effects:Heat waves, rising sea levels,

floods, drought

Climate Mitigation Actions Climate Adaptation Actions

RENEWABLE ENERGY

GENERATION

ENERGY EFFICIENCY

CLIMATE SMART

AGRICULTURE

LOW CARBON MOBILITY

WASTE & WASTE WATER

CLIMATE SMART

AGRICULTURE

WASTE & WASTE WATER

CLIMATE SMART ICT

(DISASTER RISK MGT.)

CLIMATE SMART INDUSTRIES,

MANFACTURING,

INFRASTRUCTURES

SME Sectors Industries Power/EnergyAgriculture Value

ChainTransportation

Information,

Communication &

Technology (ICT)

CLIMATE / GREEN FINANCE

Green/Climate Innovators/Entre

preneurs

Market

PILLAR 1: Vanilla LOC framework Vs. Green LOC framework

African Development Bank

Line of Credit Proceeds

Financial Institutions

Sectors: Industries & SMEs

African Development Bank

Green Line of Credit Proceeds

Financial Institutions

Sectors: Industries & SMEs

Climate Actions: Mitigation & Adaptation

Climate Mitigation Action Taxonomy

RENEWABLE ENERGY GENERATION CLIMATE SMART AGRICULTURE

• Renewable Energy Technologies for electricity self-generation and consumption for any

of value chain activities: Solar, Hydro, Biomass, Wind, Gas Reduction in fertilizer use, rangeland management, collection and use of

bagasse, rice husks, or other agricultural waste

ENERGY EFFICIENCY

Rehabilitation of degraded lands – green house farming practice; Reduction in

energy use in traction (e.g., efficient tillage), renewable energy powered

irrigation, and other agricultural processes

• Industrial energy-efficiency improvements through the installation of more efficient

equipment, changes in processes.

• Energy-efficiency improvements in lighting, appliances and equipment

• Clean energy powered cold chain - transport, storage, packing, processing

• Use of highly efficient architectural designs or building techniques that enable reduced

energy consumption for heating and air conditioning, exceeding available standards and

complying with high energy efficiency certification or rating schemes. This category

excludes efficiency improvements to dirty fossil fuel-fired power plants. • Livestock projects that reduce GHG emissions (e.g., manure management

with bio-digesters producing biogas for heating or cooking)

LOW CARBON MOBILITY WASTE AND WASTE WATER

Urban transport modal change: Non-motorized transport (bicycles and pedestrian mobility);

Urban mass transit

Waste management that reduces methane emissions (e.g., shifting from open

dumps and lagoons to municipal / industrial waste (water) treatment, including

switching to composting, waste incineration, landfill gas capture and

flaring/power production, etc.)

• Waterways transport resulting in a modal shift for freight and/or passengers

• Vehicle energy-efficiency fleet retrofit (including the use of lower-carbon fuels, electric or

hydrogen technologies, etc.).

Waste recycling measures with a demonstrated net mitigation benefit

Sou

rces

:C

limat

e B

on

ds

Init

iati

ve

Climate Adaptation Action Taxonomy

WASTE AND WASTE WATER MANAGEMENT

CLIMATE SMART MANUFACTURING, TRADE,

INFRASTRUCTURES

Installation of domestic rainwater harvesting equipment and water storage where water

supply is negatively affected by climate change

Manufacturing (e.g., design of climate-resilient equipment);

Rehabilitation of water distribution networks and building pipelines to improve water

resources management, to address changes in water flows/quality caused by climate

change, etc.;

Increased cooling requirement in food processing

distribution & retail resulting from more extreme heat events

(e.g., increased water-efficiency in processing)

Changes in design of sanitation and storm-water management systems in response to

extreme weather events arising from climate change.

Adaptation components in projects to improve the climate

resilience of existing infrastructure e.g., transport

infrastructure, energy infrastructure, riverine infrastructure

(including built flood protection) and human settlements

(e.g., housing)

CLIMATE SMART ICT - (OTHER) DISASTER RISK MANAGEMENT CLIMATE SMART AGRICULTURE

Early warning / emergency response systems to adapt to increased occurrence of extreme

events by improving disaster prevention, preparedness and management and reducing

potentially related loss and damage;

Provision of information on crop diversification options to

farmers

Monitoring of disease outbreaks and development of a national response plan (to adapt to

changing patterns of diseases that are caused by changing climatic conditions).

Adoption of sustainable aquaculture techniques to address

changes in fish stocks resulting from climate change

impacts and supplement local fish supplies, etc.

Sources:Climate Policy InitiativeClimate Bonds Initiative

Test Case: Applying Climate Actions across Agriculture Value Chain

Renewable Energy Technologies for electricity self-generation

Industrial energy-efficiency improvements through the installation of more

efficient equipment, changes in processes.

Energy-efficiency improvements in lighting, appliances and equipment

Clean energy powered cold chain – energy-efficient transport, storage, packing, processing

Livestock projects that reduce GHG

emissions (e.g., manure

management with bio-digesters

producing biogas for heating

Provision of information on crop

diversification options to farmers

Reduction in fertilizer use, rangeland

management,

Green – Climate Mitigation ActionOrange – Climate Adaptation Action

PILLAR 2: Climate Risk Management Procedures for the LOC

Sample Sectors Climate Risks & Potential Exposure

Urban planning and

infrastructure sector

More frequent heat waves may increase the stress on emergency services and hospitals while

more intense storms and rising sea levels may increase the vulnerability of coastal housing and

infrastructure.

Electricity sector

An increase in heat waves and longevity of temperatures daily would further stimulate air-

conditioning demand.

Increased peak demands on generation and distribution systems will challenge system reliability.

Since investment needs are strongly driven by peak demand rather than by average levels of

consumption, per unit cost of electricity can be expected to increase in response to the increased

peak demand. The required capital to accommodate such peak demand will also increase.

Agriculture sector

Increases in temperature and net reductions in average rainfall across Africa could make drought

sequences more common, while the impact of increased temperatures would make them more

damaging to plant and livestock viability and production.

To the extent that these increases in drought frequency or severity result from continental impacts,

then drought management based on shipping livestock and fodder between areas of localized

drought may not be possible.

Success Criteria Shareholder value Growth Supply Chain Human Resources Compliance

Rating Catastophic Major Moderate Minor Insignificant

PILLAR 3: Technical Assistance for Capacity Development for Financial Institutions and De-risking SMEs

Stages in green

financing

Technical assistance to

FIs

Technical assistance to end

borrowers/SMEsBottlenecks to address

Project Identification &

Origination

Market studies, portfolio

assessment

Energy audits, providing information on

financing options

Low awareness of green investment

opportunities; lack of bankable green

projects

Appraisal and ProfilingTechnical audits, financial

assessments

Support in drafting bankable business

plans and loan applications as well as

blended financing options

Lack of capacity to evaluate green

investment proposals; lack of clear risk

profile for green projects

Market-led Product

Development

Support in

design/development,

testing, and deployment of

new financial products,

capacity building

Hand-holding end borrowers during

project implementation and early stage

management

Unsuitable financial products or

lending practices; lack of market

knowledge and information

Monitoring, evaluation,

and aggregating

Development of monitoring

and evaluation tools,

environmental and social

risk management

Support in the assessment of the

project

Lack of capacity to monitor and

evaluating ongoing projects; lack of

projects aggregation mechanism

Marketing and

communication

Assistance in developing

marketing campaigns

Aggregation of bankable projects of the

end borrowers

Low awareness of green investment

opportunities and benefits

Technical Assistance Along the Lifecycle of the Financing Process

• Detailed Climate Action & Finance Taxonomy alignment withthe NDC sectoral targets (2 hours online)

• Climate financial instruments such as grants, concessionalloans, bonds, equity, blended finance (2 hours online)

• Role of Development Finance Institutions and CommercialBanks in Climate Finance (2 hours online)

• Exploring different innovative and practicable blendedfinancing scenarios

• Case Studies on Originating and Financing Bankable GreenBusinesses and Climate Actions (mitigation & adaptation) (2hours online)

• Exploring policy formulation strategies for the Bank on climateaction and finance (2 hours online)

Training Modules & Target Audience

AfDB Staff: PECG, Private Sector Operations, Investment Officers, Non-Sovereign Operations

Financial Institutions:commercial banks, development banks, microfinance banks across the Pilot 6 African countries

• How can the guidelines be integrated into project life cycle of the Bank’s

operations?

• What are the potential challenges and opportunities in applying the

guidelines?

• Are there other staff and departments within the Bank operations that

would benefits from the training on how to use the tool?

• Is the tool in strong alignment with the Bank’s climate action agenda?

Questions for the Participants

Participants’ thoughts on the

Mainstreaming Climate Change into Lines of Credit Guidelines

6161natural eco---driving for more sustainable resilient economy!

Thank You

Email: afdbsmeproject@ecopital.com www.ecopital.com

Africa Green Jobs Tracking Tool

Presentation By:

Dr. Jubril Adeojo

Outline

Rationale

Objectives

Defining Green Jobs

Indicators for tracking Green Jobs

Tracking Methodology

Rationale for the Green Jobs Tracking Tool

Additionality and Development Outcomes Assessment Framework

(ADOA)

• Green Jobs creation output is not included in the development outcome reporting template on LOC-financed projects

Green Growth Framework

(GGF)

• No clear definition of green jobs, and no strong linkage with the defined green economy indicators

• Very macro overview and framework of green growth and climate action indicators in African economies

Jobs for Youth in Africa Tracking Tool

• No strong alignment with SDGs and green economy indicators

• Specific to youths, which is limited in scope

Gap Analysis of Existing Related AfDB Tools

Objectives of the Tracking Tool

To make existing related tools more inclusive from a green economy

perspective

To further press on co-creation of

sustainable and green jobs in

process of Africa industrialization and Integration Agenda.

To institutionalize green jobs creation

into the project cycle of the Bank

Defining Green Jobs

• Green jobs are defined as jobs that contribute to reduction of the environmentalimpact of enterprises and economic sectors, ultimately to levels that are

sustainable.

• This definition covers work in agriculture, industry, services, transportation, real estate,energy access, and administration that contributes to preserving or restoring thequality of the environment.

• Green jobs must also meet the criteria for decent work – adequate wages, safeconditions, workers’ rights, social dialogue and social protection.

Drivers for Creating Green Jobs

Changes in the natural or

built environments

Technology and

innovation = climate action

Markets for green

industries and new

consumer habits

Government Policies and Regulations

Indicators for tracking Green Jobs

Economic Indicators Environmental Indicators Social Indicators

Economic ResilienceCoping with climate variability impacts

e.g. flooding, windstorms, and droughtInclusion of marginal groups

Absorbing a growing workforce into

the national labour market

Sanitation, waste management in

urban areas, forest loggingPoverty reduction

Productivity - energy efficiency &

conservation across sectorsGHG emissions reduction

Just transition for workers and

enterprises; sustainable job creation

Rural economic development

(forestry, agriculture)

Sustainable resource management,

GHG capture capacity, biodiversity,

land use management, food

production

Employment, income, decent work,

Productivity - resource efficiency

across sectors

Waste management and recycling,

pollution controlDecent work, livelihood diversification

Creating new markets (domestic and

international)

Organic farming, sustainable logging,

energy-efficient manufacturing,

ecotourism

Employment, income, decent work,

Increasing Productivity

Air quality improvement e.g. vehicular

industrial, and energy source

emissions reduction

Public health, quality of work, work

decency

Tracking Methodology

Direct EmploymentStatus Direct environment-related jobs, especially if the green

activity cuts across a number of different sectors.

Input - OutputAble to estimate economy-wide results includingindirect and induced impacts and their interaction withthe environment.

Multipliers - Direct,indirect and inducedimpacts

The induced multiplier effect is a multiple of 5.7x of thedirect green jobs/employment status to generate andtrack the indirect green jobs created along the inputand output supply chain of the financed/implementedclimate action within a particular sector.

• Practical Alignment with existing relatedtools and framework of the Bank (2 hoursonline)

• Drivers for co-creating green jobs (2 hoursonline)

• Scoping of key green jobs indicators inreal-life cases (2 hours online)

• Limitations of the tracking methodologyand approaches (2 hours online)

• Practical Alignment of Green EconomyIndicators with the SDGs (2 hours online)

• Tool Testing on some approved/financedprojects of the Bank (2 hours online)

AfDB Staff: PECG, Private Sector, Investment Officers, Non-Sovereign Operations, Sovereign Operations

Private Sector: Financial Institutions, Large Corporates, SMEs, NGOs across the Pilot 6 African countries

Public Sector: Government Ministries, Agencies and Departments across the Pilot 6 African countries

Training Modules & Target Audience

• How can the tracking tool be integrated into project life cycle ofthe Bank’s operations?

• Should the tool be institutionalized into all the operations of theBank?

• What are the potential challenges and opportunities in applyingthe tracking tool on all projects of the Bank?

Questions for the Participants

Participants’ Thoughts on the

Africa Green Jobs Tracking Tool

7373natural eco---driving for more sustainable resilient economy!

Thank You

Email: afdbsmeproject@ecopital.com www.ecopital.com