The African Development Bank (AfDB) is strongly committed towards extending financial support to the West African countries in meeting their Nationally Determined Contributions (NDCs) targets under the Paris climate accord.
According to the press release by the bank, this support involves the bank underwriting to prepare concept notes that would explore the use of internationally transferable mitigation outcomes (ITMOs) in selected West African countries.
According to Gareth Phillips, Manager of Climate and Environment Finance at the African Development Bank:
“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.”
What you should know
- The project is financed through the African Climate Technology and Finance Center and Network (ACTFCN), a Bank-managed initiative that draws on funds from the GEF Trust Fund and the Special Climate Change Fund.
- ACTFCN aims to support sub-Saharan African member countries in scaling-up the deployment of low-carbon and climate-resilient technologies for climate change mitigation and adaptation.
- This initiative is expected to assist the governments in developing the requisite technical capacity and institutional infrastructure that would enable the private sector to access new sources of climate finance as well as promote new financing mechanisms for energy efficiency and mitigation projects.
- The ITMOs 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.
- The Paris agreement permits the use of markets for the transfer of ITMOs between countries to meet the commitments contained in their NDCs.
- According to the Press release, “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”.