Just ask the investors: businesses in emerging markets can no longer afford to ignore the risks posed by the changing climate to their bottom lines.
For the past decade, annual temperature records have been broken with disturbing regularity. Climate change is expected to adversely impact economies around the world, especially those in developing countries, and risks pushing 100 million people into extreme poverty by 2030. Making climate-vulnerable sectors such as agriculture, health, and infrastructure more resilient is critical to reducing the negative economic and social impacts of climate change.
70 financial institutions – ranging from regional and microfinance institutions to national and global banks – from over 20 countries have vowed to step up financing for energy efficiency investments and develop business strategies that save energy and reduce carbon emissions. They made their pledge at a two-day conference, “Building a Global Energy Efficiency Financing Alliance”, held by the EBRD jointly with the UNEP FI in the run up to the G20 summit and COP21 climate talks in Paris, with the support from Turkey’s Garanti Bank, the CIF and MWH Global, a water and natural resources firm.
With African Development Bank (AfDB) support, six African nations – Burkina Faso, Democratic Republic of Congo, Ghana, Kenya, Mali and Mozambique – made it through a global competition run by the Climate Investment Funds (CIF) to provide dedicated funding to engage the private sector in effective climate solutions.
India and Tanzania advance plans to develop renewables, Niger sees results in resilience, Jamaica show us around farming communities affected by climate change, and CIF M&E expands reach. All this and more.
The CIF’s private sector set-asides have made over $200 million in special funds available to engage the private sector in programs and projects under the PPCR, FIP, and SREP. The AfDB has enthusiastically supported this undertaking, and submitted project proposals for Burkina Faso (upgrading cashew and other nut production processes), Ghana (public-private partnership for restored forest reserves), and Kenya (privately funded solar farm), among others.
'Creating an enabling environment’ is a buzz phrase in development circles. But what does it really mean? I have been musing over this in the context of the SREP. Given the increased global pressure to develop regulatory and market-based instruments to shift investments from fossil fuels to more climate-friendly alternatives, it is no surprise that countries worldwide are focusing on how to achieve this goal.
SREP financing of $8 million is helping Nepal catalyze a new, large-scale waste-to-energy market to expand energy access, reduce pollution, and save CO2 emissions.
The FIP is backing Mexico’s trend-setting small-business loan assistance pilot, which aims to boost timber industry profits, foster community socio-economic stability, and ease problems associated with climate change. At least 60 community forest enterprises will average a 6% increase in annual profits, garnering higher income for 4,900 people and providing indirect benefits to 10,680 community members, as well as capturing the equivalent of 28,610 tons of carbon.