Side Event III: Dr. Aisha Musaazi S. Nakitto: Policy Innovations to Unlock Financing for Africa’s Climate and Bioeconomy Initiatives

Dr. Aisha Musaazi S. Nakitto, Scientist and Interim Program lead, Malabo Montpellier Panel, AKADEMIYA2063

Transcript

1. Scientist & Interim Programme Lead, Malabo Montpellier Panel, AKADEMIYA2063 POLICY INNOVATIONS TO UNLOCK FINANCING FOR AFRICA’S CLIMATE CHANGE MITIGATION & BIOECONOMY INITIATIVES Dr Aisha Musaazi S. Nakitto
2. #2024ReSAKSS #2024ATOR Presentation outline ➢Introduction ➢Lessons from case study countries o Climate finance o Funding Bioeconomy Initiatives ➢Recommendations
3. #2024ReSAKSS #2024ATOR
4. #2024ReSAKSS #2024ATOR Introduction: Climate Finance & Food Systems in Africa - Why NOW • UNFSS + COP27 (“Africa COP”) • Agriculture & Food Systems at COP27 • Intensifying impacts on agricultural yield & poverty level • Urgency • Economic imperative • 1970-2019: 1,700 natural disasters @www.wfp.org/
5. #2024ReSAKSS #2024ATOR Introduction: Economic imperative and benefits of adaptation • Cost of inaction can be as high as US$ 210 billion p.a. (~12 % of GDP of Africa). • But: effective action would cost US$ 15 billion p.a., or 0.93 percent of GDP. • Adaptation spending can generate benefits • Every US$ 1 invested in resilient infrastructure in LMIC & MIC yields US$ 4 in benefits. @africa-energy-portal.org/
6. #2024ReSAKSS #2024ATOR Introduction: Opportunities from bioeconomy development • Sustainable production & consumption o Climate change mitigation & resilience • New value chains and agro-processing o Productivity o Jobs • Food security and nutrition • Rural development • Trade-offs © Mitchell Maher, IFPRI 2016
7. #2024ReSAKSS #2024ATOR Lessons from country case studies: Climate finance
8. #2024ReSAKSS #2024ATOR Mali: Centralized pots & sources of finance for adaptation • Dedicated climate budget line at the Ministry of Economy and Finance • Mali Climate Fund • 80% on adaptation projects • Mali Climate Change Adaptation Activity • To create community-based systems to respond to climate change • Access to accurate and timely climate data • Integrate climate data into local gov’t planning • The Decentralizing Climate Funds project @iberdrola.com/
9. #2024ReSAKSS #2024ATOR Zimbabwe: Mainstreaming climate change • Mainstreaming climate change across all government programs • Zimbabwe Vision 2030 • Budget call circular 2021 • The Climate Change Management Department • National Climate Policy 2017 • National Climate Fund • Levy on net profits from industries • Monitoring & analysis of annual budget expenditure • Access to international climate funds • Infrastructure Development Bank of Zimbabwe • NIE for the Green Climate Fund • National Climate Change Learning Strategy (2020) • Active role for the private sector
10. #2024ReSAKSS #2024ATOR Lessons from country case studies: Funding Bioeconomy Initiatives
11. #2024ReSAKSS #2024ATOR Investments in bioeconomy initiatives •A bio-based transition is a long-term commitment requiring planning and investments. •Governments are taking different approaches to facilitating the establishment of a bioeconomy: • Brazil and Tanzania --- increasing agricultural productivity, • South Africa and Kenya are -- transitioning from fossil fuels, increasing agricultural productivity, and developing new industries and sectors. •Finance -- mobilize funds Beyond their own national resources • European Green Deal • Global Environment Fund • Green Climate Fund.
12. #2024ReSAKSS #2024ATOR South Africa: World class bio-innovation environment © Water Altrnatives, 2020 •Legal frameworks • 1st comprehensive bioeconomy policy approved in Africa • National Biotechnology Strategy 2001 • Intellectual Property Rights from Publicly Financed Research & Development Act •Innovative financing and investment • Government funding institutions • Industry Innovation Partnership Fund • Private sector funding •Institutional support • National System of Innovation • Bio-innovation Chief Directorate at Department for Science & Innovation • Council for Scientific & Industrial Research • Biomanufacturing Industry Development Centre • South African National Bioinformatics Institute •Programs to guide investments and for stakeholder collaboration • Agricultural Bio-economy Innovation Partnership Programme
13. #2024ReSAKSS #2024ATOR Recommendations •Mainstream climate change adaptation and resilience building activities into policies and investment decision making across government. •Scale up efforts to attract private capital for climate adaptation and bioeconomy development. •Design national reliable tracking mechanisms and simple digital tools to record climate finance flows as well as impact of funding bioeconomy initiatives. •Regulate sustainability incentives and manage trade-offs in developing a bioeconomy.
14. THANK YOU