The African Development Bank (AfDB) has extended financial support to West African countries for climate finance to deliver carbon emission reductions and meet their Paris Agreement commitments.
The initiative, according to the Bank, will go a long way to help governments develop technical capacity and institutional infrastructure to enable the private sector to access new sources of climate finance as well as promote new financing mechanisms for energy efficiency and mitigation projects.
Additionally, the project is financed through the African Climate Technology and Finance Center and Network (ACTFCN), which is an initiative managed by the African Development Bank. Also, the ACTFCN draws on funds from the Global Environment Facility (GEF) Trust Fund and the Special Climate Change Fund.
The ACTFCN further aims to support sub-Saharan African (SSA) member countries in scaling-up the deployment of low-carbon and climate resilient technologies for climate change mitigation and adaptation.
The project is being implemented by a consortium led by Triple E Systems, AfDB revealed, adding that it is anticipated that the project will strengthen the efforts of West African countries to meet their Nationally Determined Contributions (NDCs) targets under the Paris climate accord.
The Paris agreement permits the use of markets for the transfer of Internationally Transferable Mitigation Outcomes (ITMOs) between countries to meet the commitments contained in their Nationally Determined Contributions.
The African Development Bank further asserted that it will underwrite the preparation of concept notes exploring the use of Internationally Transferable Mitigation Outcomes (ITMOs) in selected West African countries.
“This intervention will put in place a robust platform, including processes, procedures and structures that will ensure real and practical participation of the West African sub-region in the use of ITMOs to deliver some of their NDC aspirations. It will form the basis for the replication of these activities in other African countries” .
Gareth Phillips, Manager of Climate and Environment Finance at the African Development Bank.
Internationally Transferable Mitigation Outcomes are units from the new mechanism for the international emissions trading between Parties to the Paris Agreement. They help to promote low carbon technologies and accelerate the implementation of projects and programs for energy efficiency projects.
The process involves the implementation of an approved project that reduces greenhouse gas emissions and creates mitigation outcomes utilizing approved accounting procedures. These steps are followed by the transfer of the mitigation outcomes from the host party to a buying party. Corresponding adjustments in the registries of both parties ensure environmental integrity.
Finally, the African Development Bank disclosed that the project will also leverage the active engagement of several West African countries in climate negotiations, particularly around Article 6 of the Paris accord, and the activities of the West African Alliance for Carbon Markets and Climate Finance (the West African Alliance or WAA), which provide the opportunity to expand the reach of carbon pricing to enable full implementation of NDCs.
“Parties shall, where engaging on a voluntary basis in cooperative approaches that involve the use of internationally transferred mitigation outcomes towards nationally determined contributions, promote sustainable development and ensure environmental integrity and transparency, including in governance, and shall apply robust accounting to ensure, inter alia, the avoidance of double counting, consistent with guidance adopted by the Conference of the Parties serving as the meeting of the Parties to this Agreement”.
Paris Agreement, Article 6(2) and (4)
