The African Development Bank says it has extended financial support to a project that would strengthen the efforts of West African countries to meet their Nationally Determined Contribution targets under the Paris climate accord.
The bank stated on Tuesday that it would underwrite the preparation of concept notes exploring the use of internationally transferable mitigation outcomes in select West African countries.
“The project is financed through the African Climate Technology and Finance Centre and Network, a bank-managed initiative that draws on funds from the Global Environment Facility Trust Fund and the Special Climate Change Fund. The project is being implemented by a consortium led by Triple E Systems,” it said.
Manager of Climate and Environment Finance at AfDB, Gareth Phillips, said, “This intervention will put in place a robust platform, including processes, procedures and structures that will ensure real and practical participation of the West African sub-region in the use of Internationally Transferred Mitigation Outcomes to deliver some of their NDC aspirations. It will form the basis for the replication of these activities in other African countries.”
According to the AfDB, the initiative would help governments develop technical capacity and institutional infrastructure to enable the private sector access new sources of climate finance as well as promote new financing mechanisms for energy efficiency and mitigation projects.
It further noted that ITMOs promote low carbon technologies and accelerate the implementation of projects and programmes for energy-efficiency projects.
“The process involves the implementation of an approved project that reduces greenhouse gas emissions and creates mitigation outcomes utilising approved accounting procedures.
“The Paris agreement permits the use of markets for the transfer of ITMOs between countries to meet the commitments contained in their NDCs,” AfDB noted.
The project will also leverage the active engagement of several West African countries in climate negotiations, particularly around Article 6 of the Paris Accord, and the activities of the West African Alliance for Carbon Markets and Climate Finance (the West African Alliance), which provide the opportunity to expand the reach of carbon pricing to enable full implementation of NDCs, Financial Street gathered.