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1. Allocating international loss and damage finance through national climate funds: prospects for African LDCs

Author:
Mariya Aleksandrova, Washington Onyango Kanyangi, Assouhan Jonas Atchadé, Joanes Atela, and Charles Tonui
Publication Date:
01-2025
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
The new loss and damage funding framework under the United Nations Framework Convention on Climate Change (UNFCCC) emphasises the importance of channelling support through national systems and mechanisms. This approach could prove particularly challenging for African least developed ountries (LDCs), which have been prioritised for support. These countries remain confronted with major challenges to access and utilise international climate finance, especially through direct access. National climate funds (NCFs) can have a potential role in delivering international loss and damage finance to African LDCs that is in line with their national priorities. NCFs can be defined as entities mandated to finance the implementation of national climate strategies and to manage and/or coordinate domestic and international sources of climate finance. NCFs can enhance the institutional capacities of countries by supporting the development of loss and damage strategies, facilitating access to international funding, aligning resource allocation with local priorities, and ensuring the effective tracking of loss and damage finance. This Policy Brief explores the role of NCFs in the evolving global loss and damage finance architecture with a focus on African LDCs. We examine the design features of five NCFs against criteria for assessing their relevance to support measures that address loss and damage. The studied NCFs are: the Benin National Fund for Environment and Climate, Ethiopia’s Climate-Resilient Green Economy Facility, Burkina Faso’s Intervention Fund for the Environment, the Mali Climate Fund and the Rwanda Green Climate Fund. Key policy messages • Despite that only a limited number of African LDCs have established NCFs, these demonstrate their potential to channel loss and damage funding, especially for environmental rehabilitation and climate-resilient recovery efforts. Particular strengths relate to their role in priority sectors for climate change adaptation and in relation to biodiversity loss, drought, land degradation and desertification. • Existing NCFs in African LDCs have inadequate mandates and capacities to manage the complex funding needed for loss and damage. An emerging issue is their presently limited role in linking climate and disaster risk finance. • The NCFs of African LDCs can be instrumental to promote coherence and complementarity with other funding sources at the national level. Countries must establish comprehensive legislative, policy and regulatory frameworks to define the institutional roles of NCFs in loss and damage response, supported by international funding to strengthen their institutional capacities.
Topic:
Climate Change, Development, Climate Finance, and Sustainability
Political Geography:
Africa

2. From Pledges to Progress: Tracking climate finance flows and accountability in Nigeria and Uganda

Author:
Tallulah Cherry-Virdee
Publication Date:
06-2025
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
Oxfam’s Climate Finance Shadow reports have shown that high-income countries have failed to deliver on their commitment to mobilize climate finance for low- and middle-income countries. In 2024, two country reports, on Uganda and Nigeria, were published that analyzed how the insufficient international climate finance that is reaching their governments is being spent at national and subnational level. The two reports also lay out ways for how civil society can track these flows, ensure meaningful community participation, and hold their governments accountable. This paper analyses the findings and commonalities from the reports on Uganda and Nigeria, and includes recommendations for climate finance providers, national and subnational governments, and civil society on how climate finance can be spent fair, transparent, accountable and in an inclusive manner.
Topic:
Budget, Climate Finance, Citizenship, Accountability, and Participation
Political Geography:
Uganda, Africa, and Nigeria

3. Climate Adaptation Finance: The Gap Between Needs and Resources Continues to Grow

Author:
Jamal Saghir and Ede Jorge Ijjasz-Vasquez
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Institute for the Study of International Development, McGill University (ISID)
Abstract:
Our recent research on the state and trends of climate adaptation finance needs, gaps, and trends globally and in Africa provides new insights that call for greater urgency in adaptation action and financing. The global adaptation funding gap continues to widen because the understanding of needs shows much higher levels of investment required, and the rate of increase of adaptation financing is insufficient. In this policy brief, we review global climate finance trends, the growing funding gap in climate adaptation finance globally and in Africa, financial instruments used for climate adaptation, and challenges and recommendations to improve the tracking of climate adaptation finance.
Topic:
Climate Change, Climate Finance, International Development, Funding, and Adaptation
Political Geography:
Africa and Global Focus

4. Unheard Water Stories from Asia, Africa and MENA: Elevating local voices for water security in a climate insecure world

Author:
Nuzhat Nueary
Publication Date:
11-2024
Content Type:
Policy Brief
Institution:
Oxfam Publishing
Abstract:
This paper shares stories from six countries—Bangladesh, Nepal, Kenya, Somalia, Syria, and Iraq—highlighting the challenges communities face in accessing water. It seeks to bring forward the unique perspectives of communities from diverse backgrounds, each experiencing water crises in distinct ways. While climate change intensifies their crises, many communities also face marginalization due to exclusionary water governance. The impacts are further compounded by factors such as gender, poverty, ethnicity, and race. However, the voices and perspectives of these communities are often overlooked in global climate discussions.The paper aims to highlight these diverse community experiences and advocate for the inclusion of local voices and leadership in climate actions and interventions to ensure fairer access to water. As global climate events like COP-29 unfold, it calls on governments to create inclusive climate policies, integrate water issues into loss and damage discussions, actively involve women and local voices, and urge rich, polluting nations to compensate those most affected by historic and ongoing carbon emissions.
Topic:
Climate Change, Migration, Water, Governance, Climate Finance, Land Rights, Drought, Loss and Damage (L&D), Gender Equality, Water Insecurity, and Salinity
Political Geography:
Bangladesh, Kenya, Africa, Iraq, South Asia, Middle East, Nepal, Syria, and Somalia

5. The Challenges of Climate Financing in Conflict Contexts

Author:
Sagal Abshir
Publication Date:
03-2023
Content Type:
Special Report
Institution:
European Institute of Peace (EIP)
Abstract:
The “Challenges of climate finance in conflict contexts” is a paper by Sagal Abshir, senior advisor to the Environmental Peacemaking Project in Somalia, supported by the Norwegian Ministry of Foreign Affairs. Amidst a general global underfunding of climate action, fragile and conflict-affected states struggle to secure climate financing. This is the case even for countries where climate change exacerbates the impact of chronic war and poverty. Although the funding gap is known, climate finance flows are scarce and scattered to fragile and conflict-affected to adapt and mitigate lag behind what has been promised and what is needed. In the cases of Somalia and Yemen, which are highly vulnerable to climate impacts, it averaged only USD 2 per capita. More generally, the total annual global flows of climate-related finance averaged a little over USD 600B in 2019-2020 – only a third of the IPCC’s estimate of funding required to reach our climate targets – from which only 10 per cent is directed to climate adaptation. The challenges in preparing communities and governments in fragile and conflict-affected states for climate impacts call for a new imagination, new mechanisms, and mobilizing political commitment to ensure climate financing flows help people in these countries respond to climate risks. Other solutions are on the horizon: well-designed climate action can serve as an opportunity to consolidate peace. Lessons learned from pilot climate responses in war-torn countries demonstrated that climate adaptation could contribute to conflict prevention and resolution efforts, such as in the case of Sudan and Nepal. In this paper, Sagal Abshir explores the status of climate finance for the extremely fragile and climate-vulnerable countries of Somalia and Yemen. The author reviews the global climate financing landscape and some challenges of deploying climate financing resources in these contexts. Using Somalia and Yemen as case studies, the paper will take a closer look at how these two countries have fared; and conclude with some reflections and recommendations.
Topic:
Climate Change, Environment, Climate Finance, and Conflict
Political Geography:
Africa and Somalia

6. Is International Climate Finance Unfair and Inefficient?

Author:
Thibaud Voïta
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Finance is arguably the most sensitive climate negotiation topic. Different studies have shown that rich countries emit the majority of greenhouse gas (GHG) emissions, while the climate footprint of the poorest countries is much more limited. In addition, the countries that emit the less often turn out to be among the most vulnerable to climate change, with high needs in terms of adaptation finance. According to some analysis, the 46 least-developed countries suffer from a high risk of loss and damage, and the countries that are the least at risk are in Europe. Therefore, developing countries are demanding contributions from the developed world to address their climate finance needs (both in terms of mitigation and adaptation). These demands have been somehow met with a pledge made at COP 15 in 2009, where developed countries announced a yearly contribution of 100 billion dollars (USD) by 2020. However, this pledge has not been honored. Meanwhile, climate change is accelerating and, as a result, countries’ needs in terms of adaptation are increasing, as well as their loss and damage. The finance gap is widening and though the 100 USD billion pledge is expected to be achieved in 2023, analysis from the think tank Climate Policy Initiative (CPI) shows that it will not be enough to address the current needs. According to their analysis, the current flows need to be increased by at least 590% annually. This briefing will show that, in addition, climate finance is not accessible to the poorest and therefore increases inequalities and the exclusion of the most vulnerable countries. The Prime Minister of Barbados, Ms. Mia Motley, complains that the “international financial system […] is broken, outdated, infested with short-termism and downright unfair. In parallel, the multilateral climate finance governance is evolving: new multilateral banks and donors are gaining ground and could be the first step of a power shift in climate finance from Western countries to emerging economies. Meanwhile, the Bretton Woods institutions are being reformed, and new mechanisms may bring promising developments (e.g., under Article 6 of the Paris Agreement). The Paris Summit for a New Global Financial Pact on June 22-23, 2023 is an opportunity to address these issues, though it also risks highlighting the North-South tensions further.
Topic:
European Union, Climate Finance, Energy Transition, and Green Economy
Political Geography:
Africa, Europe, Asia, and France

7. The JETPs of South Africa and Indonesia: A Blueprint for the Move Away from Coal?

Author:
Annika Seiler, Hannah Brown, and Samuel Matthews
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
The Just Energy Transition Partnerships (JETPs) are a novel approach to intensifying ongoing efforts toward carbon neutrality, combining country-led strategies to decarbonize the energy sector and addressing development priorities resulting from the ensuing structural transformation with focused, long-term, and plurilateral partnerships. The launches of the $8.5 billion JETP for South Africa in 2021 and the $20.0 billion JETP for Indonesia in 2022 provide momentum for this effort. However, the legacies of coal-based power and modest renewable energy deployment in both countries present key challenges in the areas of political economy, policy alignment, finance, and supply chain development. This paper consolidates available information about these two JETPs and analyzes the approaches taken by South Africa and Indonesia, with the aim of providing a thought framework for these JETPs. It seeks to identify risks and gaps that could obstruct these JETPs’ advancement and to assess whether these JETPs can serve as blueprints for other countries looking to accelerate their move away from coal. Further, this paper highlights complementary action that could enhance the effectiveness of these JETPs and guide the development of similar partnerships in the future. The paper finds that while the JETPs for South Africa and Indonesia appear to deliver a blueprint for moving away from coal in their respective contexts, barriers, risks, and gaps call into question whether the targets can be delivered at the planned pace and scale.
Topic:
Climate Change, Climate Finance, Renewable Energy, Energy, and Green Transition
Political Geography:
Africa, Indonesia, South Africa, and Southeast Asia

8. Climate Policy And Finance

Author:
Precious Chukwuemelie Akanonu
Publication Date:
07-2017
Content Type:
Working Paper
Institution:
Centre for the Study of the Economies of Africa (CSEA)
Abstract:
Carbon pricing has been recognized not only as the most efficient economic policy instruments to internalize the social cost of emissions, but also as a major tool to generate public revenues that can be used to offset the potential adverse distributional effects of climate policy. However, in many developing countries, there is a widespread reluctance to commit to climate policy, largely due to financial constraints, a lack of public support, and concern over its regressive effects.This paper makes recommendations towards the design of an effective carbon pricing system that not only discourages air pollution but also encourages the gradual uptake of climate-friendly technologies by the private sector in Nigeria’s oil and gas sector, while supporting public investment in sustainable infrastructures and projects that offset the distributional effect of the climate policy.
Topic:
Climate Change, Environment, Finance, Climate Finance, and Economic Policy
Political Geography:
Africa and Nigeria

9. Water Management in the Nile Basin: A Fragmented but Effective Cooperative Regime

Author:
Bart Hilhorst
Publication Date:
12-2016
Content Type:
Research Paper
Institution:
Center for International and Regional Studies (CIRS), Georgetown University in Qatar
Abstract:
Ongoing expansions of hydro-infrastructure in the Nile basin, combined with infrastructure completed in the past decade, are increasing the capacity to regulate the Nile as well as the benefits accrued to the Nile waters. No longer reliant on funding from the World Bank and Western donors alone, Nile water development is accelerating in a number of upstream riparian states. Hence, the river Nile upstream of the Aswan High Dam is gradually being transformed from a natural to a regulated river. Hydro-infrastructure projects represent a strong driver for issue-based cooperation among the most affected riparians, but it is noted that the basin- wide perspective is not considered in these ad hoc arrangements. This paper describes the emerging cooperative regime in the Nile basin and analyzes its effectiveness. It presents an inventory of where cooperation among Nile riparians is needed, and discusses the required level of cooperation. It looks at the benefits of cooperation that are not related to a specific geographic area. The paper then identifies four distinct sub-basins that have substantial autonomy in managing their water resources. It concludes that the emerging cooperative setup is logical and for now quite effective, and does not lock in arrangements that may prove inconsistent—at a later point in time—with the overall objective of reasonable and equitable use of the Nile waters by each riparian state. Hence, the emerging cooperative regime arguably represents a positive step in the evolution from a basin without cooperation to a basin managed to optimize the use of the Nile waters for the benefit of its people.
Topic:
Environment and Climate Finance
Political Geography:
Africa and Egypt