FROM AROUND THE WORLD
OPEC Fund Development Forum 2023
SEforALL W orking alongside partners such as the Rockefeller Foundation, the UN Economic Commission for Africa, and the UN-mandated SEforALL, the OPEC Fund is, at time of writing, set to join the Africa Carbon Market Initiative. Launched at COP27 with the aim of boosting clean energy production and carbon reduction, while dramatically expanding Africa’s role in voluntary carbon markets, the organizers have dubbed the initiative a “transformational opportunity for Africa”. They claim that carbon credits should be seen as a truly meaningful commodity – even “the next oil”. The initiative has mapped six major development benefits for the continent. First, on forestry and land use because Africa hosts a quarter of global
biodiversity, which would benefit from increased protection and community awareness. Second, on agriculture and soil sequestration because Africa’s farmers would receive direct payments while improved soil and shade cover would result in higher yields. Third, on renewable energy because Africa would benefit from increased energy access and improved air quality by ending its reliance on fossil fuels. Fourth, at home because African households would see major health benefits from switching to clean cookstoves. Fifth, on livestock because Africa’s herders would benefit from direct payments for their role in managing carbon sinks. And sixth, on employment because Africans of working age would benefit from new job opportunities across the voluntary carbon market ecosystem.
“It’s all about partnerships” Suzanne Gaboury Director General of Private Sector Operations at the Asian Development Bank (ADB)
OFQ : What is the ADB doing to promote blended finance and mobilize private sector resources? Suzanne Gaboury: Blended finance is particularly critical for providing de-risking opportunities to encourage the private sector to invest in climate-related projects. We see this across all tech sectors that we’re involved in - from infrastructure to agribusiness to financial institutions. The private sector does not like uncertainty, so we aim to create a more certain environment by using the right enabling tools, while also providing opportunities. We bring in blended finance tools to de-risk renewable energy purchase agreements, so that the private sector can a ff ord to join. We take a similar approach with agribusiness to encourage investment from smallholder farmers.
PHOTO: IFAD/Sarah Morgan
IFAD J oining UN partners from IFAD and WFP, among others, the OPEC Fund senior management is set to speak at a side event that will dive deep into new ways of mobilizing private sector finance for climate adaptation of food systems and rural agriculture. The event will consider ways of breaking the vicious circle between greenhouse gas emissions, global agricultural productivity and impacts on natural resources. Participants will start from the premise that while public funding is key, private sector investment is critical for scaling-up. They will then discuss barriers, innovative finance and share best practices for public-private partnerships.
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PHOTO: Sudarsan Thobias/Shutterstock.com
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