The Paris Agreement on tackling climate change, reached by all nations in December 2015, sets a goal to limit global warming to 2oC above pre-industrial levels. Above this level of warming, scientists project widespread and devastating impacts for agriculture, ecosystems and biodiversity, human settlements and livelihoods, access to water and sanitation and human health and wellbeing.
The funding needed to achieve this goal is massive, including an annual USD 2.2 – 6.4 trillion of investments in low-carbon energy, transport and infrastructure over the next 10 years. Current funding for climate change is in the region of USD 579 -781 billion per year. Even if the 2°C temperature rise target is reached, the cost of adapting to the unavoidable impacts of climate change could reach USD 500 billion per year by 2050. These impacts are borne disproportionately by the world’s poorest and most vulnerable countries and communities, who lack the means to respond.
There is an urgent need to scale up investment in a low carbon economy, shift the USD 1.1 trillion invested annually in fossil fuels and fossil fuel subsidies towards cleaner alternatives, and create new opportunities for investment in building resilience of communities, economies and ecosystems to unavoidable climate impacts. The public sector has a key role to play in creating an enabling policy environment, in using public funds to de-risk private investment in new technologies and sectors, and in funding some of the adaptation actions that may not be financially viable for the private sector. However, the bulk of the investment needed will come from the private sector, and will generate significant economic returns and opportunities for growth and employment.
We offer advisory and technical support to African governments, public sector agencies, and non-governmental organisations to develop climate policies, regulations and strategies; identify low-carbon, climate resilient development priorities; design and develop projects and programmes; understand, access and deploy climate finance; engage stakeholders; and strengthen institutional arrangements and capacities. We also support private and financial sector actors to understand climate change risks and opportunities to their business, and to invest in climate change solutions.