Ist CENTRAL AFRICA HYDROMET FORUM Libreville, Gabon, 14 th to 16 th Novembe r 2018

1. Ist CENTRAL AFRICA HYDROMET FORUM Libreville, Gabon, 14th to 16th November 2018 FINANCING WEATHER, CLIMATE, WATER AND EARLY WARNING SERVICES IN CENTRAL AFRICA Justus Kabyemera, PhD Coordinator, ClimDev Africa Special Fund African Development Bank

2. Climate Finance in the Paris Agreement • Calls on developed countries to provide at least $100 billion/year by 2020, BUT recent analysis shows that achieving this goal will be challenging. • Clear signal of the need to scale up and shift investments wards a low-carbon trajectory, including both public and private finance • Important role of pubic sector in mobilizing scaled up private investment • Need to scale up finance for adaptation • African countries have made ambitious commitments in their NDCs to strengthen resilience to climate change and transform their economies onto low carbon trajectories. • However, most of these commitments are conditional on substantial climate finance support from developed countries

3. Total climate finance breakdown by region, 2015/16 in USD billion Two figures: 12/410 = 3% 12 + (8/2) / 410 = 4% Over 2015–2016, 79% of finance was raised in the same country in which it was spent.

4. Total MDB Climate Finance, 2017 (in US$ million) Source: Joint Report on Multilateral Development Banks Climate Finance, June 2018

5. AfDB’sAfrica NDC Hub: NDCs Financing Mechanism • The AfDB’shas established the Africa Nationally Determined Contributions (NDCs) Hub to serve as a resource pool for Regional Member Countries (RMCs), and to coordinate various sector activities with a view to fulfilling obligations related to the Paris Agreement. • The Hub particularly focuses on three key support areas: 1.  Fostering long-term climate action – this entails analytical work to align  country-NDCs with national development agenda, its voluntary contributions, and to explore options to raise ambition necessary for low carbon and climate resilience growth on a long-term trajectory. 2.  Mobilizing means for implementation – finance, capacity building, technology development and transfer. The Hub will engage global climate funds and the private sector to cater for both conditional and unconditional pledges of African NDCs; and 3.  Coordination, Advocacy and Partnerships – the Hub will provide a platform for coordination of NDC support activities on the continent for the efficient use of limited resources. 

6. ClimateFinance Instruments at the Bank

7. Existing climate funds at the AfDB Bank-managed trust funds: • Africa Climate Change Fund (ACCF) • Sustainable Energy Fund for Africa (SEFA) • Clim-Dev Africa Special Fund (CDSF) • African Water Facility (AWF) International funds for which Bank is implementing agency: • Green Climate Fund (GCF) • Global Environment Facility (GEF) • Climate Investment Funds (CIF) • Adaptation Fund (AF)

8. Status of Implementation of the SAWIDRA-Regional Climate Centre Projects

9. Climate Finance at the African Development Bank The Climate Finance Team coordinates and leads the implementation of different Facilities that provide multiple instruments (grants, concessional debt, equity, etc.) which ultimately enhance project bankability, build resilience to climate change and support transition to green growth in Africa AfDB’s role External Funds (AfDB ImplementingEntity) Bank’sOwnTrustFund Sustainable Energy Fund for Africa Africa Climate Change Fund ClimDev Africa Special Fund Green Climate Fund Climate Investment Funds The Global Environment Facility The Adaptation Fund

10. Financial Instruments at each project cycle These are targeted at different stages of the project development cycle and up to financial close. These range from preparation grants to long-term project financing instruments as well as equity and insurance products (e.g. guarantees). AfDB maximizes value-added by ensuring complementarity across different facilities and its own financial products. Public Sector Preparation and Enabling Environment Project Development Phase Project Finance Phase ∎ Grants for Technical Assistance and Capacity Building for Public Sector clients ∎ Grants for Technical Assistance and Capacity Building for Private and Public Sector clients ∎ Grants ∎ Sovereign Guaranteed Loans ∎ Senior Concessional Loans ∎ Subordinated Concessional Loans ∎ Guarantees (PRGs, PCGs) ∎ Indirect Equity ∎ Junior Equity

11. Challenges for Accessing Climate Financing • There are a number of significant challenges (risks and barriers) that limit access to climate finance, including: • Non institutional set ups of most grassroots institutions/agencies. • high up-front costs for infrastructure, skills development and strengthening of institutions. • Difficulties in accessing relevant data andinformation • Special requirements to access global climate funds.

12. Opportunities: New and Additional Climate Financing Mechanisms Within the framework of the NDCs - need to mobilize new and additional domestic, international public and private resources through: • Leveraging domestic and international private financial flows • Blend Funds • Co-financing • Weather Index Insurance - Africa Disaster Risks Financing (ADRiFi) Programme - to boost climate risk financing and insurance for African countries in collaboration with ARC

13. THANK YOU FOR YOUR ATTENTION