African Development Bank touts NDCs as investment opportunity

Staff Writer

Climate action in Africa received a boost as the African Development Bank (AfDB) highlighted the substantial investment potential within Nationally Determined Contributions (NDCs) under the Paris Agreement.

During a side event titled “Climate Change and Green Growth: Working Towards a Sustainable and Climate-Conscious Future,” AfDB’s Director for Climate Change and Green Growth, Anthony Nyong, emphasised a shift in perspective on NDCs.

“One can see it as a financial burden, but it’s an investment opportunity,” Nyong said. He pointed out that meeting NDCs is projected to require $3 trillion in investments in Africa by 2030, presenting an opening for the private sector and other investors.

To capitalise on this potential, the Africa NDC Hub hosted by the African Development Bank, is designed to accelerate the implementation of NDCs across the continent.

By leveraging the resources and expertise of partner institutions, the Hub provides critical support to African countries, enabling them to meet their climate commitments under the Paris Agreement.

One effective strategy is to couple NDCs with a circular economy roadmap. Benin is among the African countries adopting this approach.

On May 15, 2024, Benin officially launched its National Circular Economy Roadmap (NCER) project, a significant step forward that was supported by the AfDB’s Africa Circular Economy Facility. Climate change poses a risk to Benin’s agriculture while contributing to widespread deforestation.

The roadmap is designed to address these challenges by promoting sustainable resource use and energy consumption in line with the country’s NDC targets.

The primary goals of Benin’s NDCs include reducing by 20% greenhouse gas emissions by 2030 while increasing renewable energy usage to 20-30% by 2035. The country also aims to cut carbon dioxide emissions by 7.8% through 2045.

To meet these objectives, Benin’s project, submitted to the Africa Circular Economy Facility, aims to establish a comprehensive policy framework that promotes the circular economy and renewable energy, thereby enhancing the country’s climate resilience.

Additionally, it seeks to develop policies that create a more attractive environment for investors in the renewable energy sector.

Established in 2022 by the African Development Bank, the Africa Circular Economy Facility is the only trust fund dedicated to mainstreaming the circular economy as an inclusive green growth strategy in Africa.

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