Insights into Green Growth in East
Africa
Gareth Phillips,
Chief Climate Change Officer & OIC PECG2
These slides reflect the views of the speaker and are not necessarily the views of the African Development Bank
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Green Growth in East Africa
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Contents
• GG policies and strategies in East Africa
• Implementation challenges
• Case study
• Conclusions / for discussion
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GG policies and strategies in East Africa
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Kenya – Green Economy Strategy and Implementation Plan
Rwanda – Green Growth and Climate Resilience Strategy
Ethiopia – Climate Resilient Green Economy
Uganda - Green Growth Development Strategy
• AfDB – Green Growth Framework – defining levels of intervention at
project and program level and a ten year target to transition to Green
Inclusive Growth
• With support from multiple Development Partners – EU, DFID, Germany,
Korea, Multilateral Funds – GCF, and institutions including SWITCH to
green, GGGI and GGKP
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Green Growth is a moving target
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Defining GG remains a challenge, partly because the goal-posts are moving
all the time
Is it a process (e.g. a management system) or a performance standard?
GG policies and projects should address multiple criteria, though the
weighting applied varies widely. Should energy be prioritized?
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Governance and transparency
Labour, women and youth rights
Environmental and social
performance
Triple bottom line / inclusive growth
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Good / best available technology
Resource use efficiency
Compliance with NDC / long term
strategy
Contribution to SDGs
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Benefits of Green Growth
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GG means (amongst other things) growing clean now rather than growing at
any cost and cleaning up later
Growing green has multiple benefits and should be (financially) rewarded:
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Lower risk / high sustainability
resulting in better long term
prospects
Greater resource use efficiency =
lower costs
Less supply chain management
Marketing benefits = better
revenues
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Better employment prospects
More resilient economic
growth
Fewer / lower social or public
costs
Better resource use
efficiency
Contributions towards NDC
and SDGs
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The problem is… There is no financing mechanism
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GG suffers from a lack of a financing mechanism for a number of reasons:
• It is not the subject of a UN convention
• Several existing conventions overlap significantly (UNFCCC, CoB; CoD…)
• The GREEN Climate Fund is not particularly green, its focus is climate
• Green Bonds are certainly in fashion but they fund their own definition of
green growth…
• ….there is no clear or agreed definition of GG
• It is hard to distinguish GG from “good practice” – the additionality
question
FONERWA in Rwanda has raised almost USD100m to fund GG projects
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Case study – Atmospheric Space
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• The UNFCCC / Paris Agreement can be seen as a sub-sector of GG
• The scarce resource is atmospheric space to dump waste CO2
• We have a global voluntary agreement on how the remaining “2 degree”
space can be used (NDCs)
• Voluntary commitments are driving down absolute emissions and GHG
emission intensity (T CO2 per unit output)
• Funds are available from both public and private sources
• Policies are being implemented to favour reductions in emissions with
developed and some developing countries looking at trading regimes. Others
considering taxes
• We are learning about the impacts of these policies on international
competitiveness and trade
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Conclusions / for discussion
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• Resource use efficiency – there are many resources which we need to
manage better and GG can provide a platform
• However we are hampered without a common definition of GG
• The Paris Agreement / UNFCCC does this for GHG emissions
• Can GG build on climate finance and broaden the scope or are we bound to
focus on GHG and energy? And/or
• Can we raise funds to apply GG to other resources? (FONERWA did)
• Can regional integration help to harmonize the definition of GG and address
the competitiveness issues which will arise when Govts start to implement
GG policies and strategies?
• And finally, countries that we think of as green today did not necessarily
arrive where they are now by adopting GG policies and strategies
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Thankyou for your attention
Contact:
Gareth Phillips, Chief Climate and Green Growth Officer – PECG2
[email protected]
Power Energy Climate and Green Growth