Monday, December 23, 2024

AfDB urged to partner international institutions to raise financial resources ….to finance climate resilient projects

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The African Development Bank (AfDB) has been urged to partner with continental and international entities to ramp up funds for mitigation and adaptation efforts to tackle climate change on the continent.

An alliance with the African Union, the Regional Economic Communities, Multilateral Development Banks (MDBs), and International Financial Institutions is expected to yield innovative financing solutions.

Participants at the closing ceremony

This was contained in a 23-point communiqué issued at the end of the 2022 Annual General Meeting of the AfDB which ended on Friday, May 27, 2022.

On the theme “Achieving climate resilience and a just energy transition for Africa,” it marked the 57th annual meeting of AfDB governors and the 48th meeting of African Development Fund (ADF) governors held in Accra from May 23 to 27, 2022.

The communiqué welcomed the adoption and timely implementation of the new Climate Change and Green Growth Strategic Framework in particular and the commitments related to climate finance and the alignment of the Bank Group’s investments and operations with the Paris Agreement.

The framework articulates how the Bank would work with African countries to address climate change and promote green growth on the continent which is worst affected by the phenomenon.

The communiqué encouraged the Bank Group to present an equally ambitious revision of the Energy Policy in line with the Paris Agreement while continuing to build on its work to increase African countries’ resilience to climate change and other shocks.

The shocks included expanding the use of insurance against droughts, floods, desertification and tropical cyclones to ensure that the required resources are readily available to respond to these disasters when the need arises.

“We urge the Bank to take note and support the efforts to explore viable options for voluntarily channelling of the Special Drawing Rights from advanced and emerging economies able to do so,” the Communique said.

It said there should be due consideration to applicable national legal frameworks, including potentially through the Bank Group as a prescribed holder to leverage these concessional resources to provide greater financing to African economies.

“We call on the Bank Group to strengthen its effectiveness and selectivity to respond to the unique needs of RMCs, including those that may be in fragile and conflict situations as well as small, middle income, and island states, including advocating for and incentivising prudent macroeconomic policy frameworks.”

“It should assist RMCs to improve on debt sustainability, and debt data accuracy and transparency in coordination with the IMF, the World Bank Group, and the Paris Club, based on the Bank Group’s strategic frameworks as endorsed by the Board of Directors,” it said.

The communiqué also welcomed the Bank Group’s efforts to enhance Africa’s preparedness and resilience to future pandemics, including supporting the development of quality health care infrastructure on the continent and fostering partnerships.

It said that would build the capacity of the pharmaceutical industry to manufacture vaccines and therapeutics based on selectivity, the bank’s comparative advantages, and in close coordination with other actors, based on the Bank Group strategic frameworks as endorsed by the Board of Directors.

“We also encourage the Bank Group to identify ways to support the implementation of the G20 Common Framework to address debt vulnerabilities in low-income countries,” the communiqué said.

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