The African Development Bank (AfDB) will financially support West African countries to meet their Nationally Determined Contributions (NDCs) targets under the Paris Agreement.
The AfDB will underwrite the preparation of concept notes which explore the use of international transferable mitigation outcomes (ITMOs) in certain West African countries.
The project is financed through the African Climate Technology and Finance Center and Network (ACTFCN), an AfDB-managed initiative that draws on funds from the GEF Trust Fund and the Special Climate Change Fund. The project will be implemented by a consortium led by Triple E Systems. ACTFCN aims to support sub-Saharan African member countries in scaling-up the deployment of low-carbon and climate-resilient technologies for climate change mitigation and adaptation.
Gareth Phillips, AfDB manager of Climate and Environment Finance: “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 ITMOs to deliver some of their NDC aspirations. It will form the basis for the replication of these activities in other African countries.”
The initiative will help governments develop technical capacity and institutional infrastructure to enable the private sector to access new sources of climate finance. It will also promote new financing mechanisms for energy efficiency and mitigation projects.
Climate finance for carbon markets only works if there is regional cooperation
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 using approved accounting procedures. These steps are followed by the transfer of the mitigation outcomes from the host party to a buying party. Corresponding adjustments in the registries of both parties ensure environmental integrity.
The Paris Agreement’s Article 6 permits the use of markets for the transfer of ITMOs between countries to meet the commitments contained in their NDCs. The project will leverage the active engagement of several West African countries in climate negotiations specifically through the use of international carbon markets. Established in 2017 the West African Alliance for Carbon Markets and Climate Finance (the West African Alliance or WAA) is an alliance of 16 West African countries which promote sub-regional cooperation on carbon markets. The WAA will provide the opportunity to expand the reach of carbon pricing to enable full implementation of NDCs.