The Case for AfDB’s Climate Action in Africa

AfDB Partnership

Forum March 2010

African Development Bank

The Case for AfDB’s Climate Action in Africa

1. Climate Change: the challenges and opportunities for Africa

2. AfDB’s CC Action Plan 2010-2014:

- Key Expected Results

- Indicative Investment Plan

3. Resources Gaps

1. Climate Change: The Challenges for Africa

Africa is the least responsible but most vulnerable region to the impacts of climate change

Vulnerability comes largely from natural fragility, high dependence on agriculture sector, poor developed infrastructure, rapid pace of urbanization, risks of further fragility in some states

Climate change is for Africa a core development issue and sound development is key to coping with current and future climate variability

Adaptation is essential to manage climate change impacts and maximize development outcomes but…

Mitigation is also very important: a green growth path under a conducive global policy and financing framework can make a big difference to the Continent

1. Climate Change: The Challenges for Africa

1. Climate Change: The Opportunities for Africa

There are many opportunities in hydro-electric power, geothermal, wind energy, and in the longer run, large scale opportunities from solar energy

Africa has opportunities from reduced gas flaring in a number of countries, and from increased energy efficiency and transmission losses

Biofuels production (in idle land) presents an opportunity for African nations to develop a new export market and increase export revenues, improve agricultural employment, incomes ad livelihoods, especially when cultivation involves small-scale farmers

Global markets and financing opportunities to pursue a green growth path

2. AfDB’s Climate Change Action Plan 2010-2014

2. AfDB’s CC Action Plan:

Key Expected Results

2. AfDB’s CC Action Plan:

Key Expected Results

2. AfDB’s CC Action Plan:

Indicative Investment Plan

Overall funding gap for the CC Action Plan will be established after GCI and ADF-12 processes are finalized but…

…there are large TA needs in RE, EE, multi-modal/mass rapid transit systems, climate finance, CC economics, regional PPP’s, forestry…

…and projects to be fully financed and co-financed. Examples:

3. Resources Gaps

AAA/TA (mitigation):

- Green Growth Strategy for Africa

- NAMA’s development

- REDD policy frameworks

- Urban/transport master plans

- Climate finance (e.g. new carbon finance products)

- AfDB’s knowledge and screening tools (e.g. EE)

Projects/Funds:

- Africa CC Fund

- CC Action Plan pipeline of projects

3. Resources Gaps

AAA/TA (Adaptation):

- CRMA in small-island states

- Climate-proofing small-scale infrastructure

- Weather monitoring and early warning and response systems

- Investment policy reform for stimulating use of adaptation technologies

- Land tenure legal/policy reform

- AfDB’s knowledge and screening tools

Projects/Funds:

- ClimDev Africa

- CC Action Plan pipeline of projects

Principles of Engagement

Start with high risk countries where there is strong client and demand

Use a mix of instruments adjusted to country realities to attain goals

Support country systems and priorities, build ownership and participation of all key stakeholders

Work with development partners and regional institutions to deliver competency building and TA which is linked to the investment portfolio

CC integrated in AfDB’s policy and strategic work (e.g. sector strategies, CSP’s, RISP’s)

Improved portfolio tracking of AfDB’s CC investments; establishment of an outcome-based results framework and consultative process for progress review and update

The Case for AfDB’s Climate Action in Africa

Vision:

Africa – a land of new climate change initiatives & opportunities

with AfDB the key partner for

promoting sustainable development under low carbon paths

1. Climate Change: The Challenges for Africa

North Africa: crop failures, desertification, and water resources stress expected to cause economic losses and climate-induced migration

West Africa

Sahel: Further drying possible, shortening of growing period

Guinea Coast: Sea Level Rise, decrease in precipitation

Horn of Africa: Heat waves, small precipitation gains largely offset by high temperatures, shortening of growing period

East Africa: Increase in Precipitation (strongest model agreement!), More intense rainfall events (flood risk!), drought risk continues

Central Africa: More intense rainfall events expected

Southern Africa: Drying trend over large parts of region, flood and drought risk E/Central S. Africa: CYCLONES intensify (most at risk: Mozambique, Madagascar)

Sea Level Rise

Most exposed: Densely populated Guinea Coast and low lying islands

Key Countries: Gambia, Guinea-Bissau, Senegal, Ghana, Liberia, Sierra Leone, Nigeria, Benin, Togo, Cote d’Ivoire, Cameroon