The African Financial Alliance on Climate Change (AFAC) has launched a new blueprint for 2030 that places a focus on raising money and developing resources to achieve the Paris Agreement objective.
The new vision, which mainly focuses on aligning financial flows with achieving greenhouse gas emissions and climate-resilient development by 2030, was unveiled on the sideline of the recently held global climate summit (COP27) in Egypt.
It suggests improvements in areas like leadership awareness, data access, regulation of climate risk, management of climate risk, and green finance.
Participants at the event included representatives from financial institutions, countries, the Global Centre on Adaptation, and the African Development Bank.
Speaking during the launch, IFRS Sustainability Board member, Dr Ndidi Nnoli-Edozien, said “The suggested changes should be made fast and returned for approval. We need speed to act. We do not have time.”
Also speaking, Kevin Kariuki, African Development Bank Vice President of Power, Energy, Climate and Green Growth, noted that climate has been largely financed by the public sector.
“There are enough calls to mobilize these finances through the private sector. AFAC is a channel that can mobilize climate finance from the private sector once these changes are finalized,” he added.
The strategy also identified three major obstacles that must be overcome: the dearth of data that can be used to evaluate financial risk, the inadequacy of internal resources at national central banks to level the playing field between the public and private sectors, and the requirement to regularize and harmonize with international standards and practices.
Story was adapted from AfDB.