Linking Market Mechanisms and Climate Finance in Africa

The potential of financing mechanisms for climate change mitigation and adaptation to the impacts of climate change is not yet fully exploited in Africa. Therefore, the project implements exemplary climate financing models in the partner countries that contribute to the NDC goals. The project establishes links between UNFCCC market mechanisms and climate finance institutions of the UNFCCC financial mechanism, such as the Green Climate Fund. In all partner countries, the project cooperates with governments and the private sector to develop climate financing applications that leverage the potential of existing activities and bring about significant development impacts for local communities. The findings and lessons learned of the project are fed into climate negotiations and public dialogues where they contribute to the design of policy instruments. The project works with African climate negotiation partners to strengthen their influence in the UNFCCC process.

Project data

Countries: Ethiopia, Senegal, Uganda
IKI funding: 3,949,973.35 €
Duration: 04/2018 till 01/2025
Status: open
Implementing organisation: Perspectives Climate Group GmbH
Political Partner: Environment, Forest and Climate Change Commission (EFCCC) - Ethiopia

Ministry for Environment and Sustainable Development (MEDD) - Senegal

Ministry of Water and Environment - Uganda
Online: https://www.climatefinanceinnovators.com

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State of implementation/results

The project has made significant progress. Achievements include the approval of the GCF application in Senegal, the ongoing completion of the GCF review process for the funding application in Ethiopia, as well as extensive capacity building, negotiation support, outreach and knowledge products with high visibility and policy relevance. In addition, a major focus was placed on the transition of CDM activities to the Article 6.4 mechanism, with an emphasis on capacity building and the implementation of pilot projects in priority countries and at regional level. Finally, the implementation of a new work package focusing on the South-South Dialogue (Caribbean Alliance) was initiated.

Publications

Policy Briefs/ Short studies:

#1: Africa is getting ready for Article 6, December 2018.
#2: Operationalizing the Share of Proceeds for Article 6, June 2019.
#3: Closing the deal on ‘CDM Transition’: How COP 25 defined new guardrails for compromise and what they mean for Africa, May 2020.
#4: NDC conditionality and Article 6 – An analysis of African countries’ updated NDCs, May 2021.
#5: COP-26 digest: African perspectives on the Article 6 outcomes and CDM - Understanding the decisions that will shape carbon markets in the coming decades, May 2022.
#6: COP27 digest: Moving toward the operationalisation of Article 6-backed carbon markets in Africa, March 2023.
#7: COP28 digest: in preparation (expected publication April/ May 2024)

Guidebook (in preparation): Financing Sustainable Energy Access in African NDCs

COP26 Summary: The relevance of Article 6 and CDM transition outcomes for Africa (May 2022) www.climatefinanceinnovators.com/…

Guidebook: Financing sustainable energy access in African NDCs: Increasing ambition by linking carbon markets and climate finance (August 2022) www.climatefinanceinnovators.com/…

Manuals/ Studies:

Study on Article 6 piloting: Moving towards next generation carbon markets. Observations from Article 6 pilots; März 2019.
Update Of the study: Moving towards next generation carbon markets. Observations from Article 6 pilots, Juni 2019.
2nd Update of the study: Article 6 piloting: State of play and stakeholder experiences, Dezember 2020. 3rd update of the study: Article 6 piloting.
Study on Financing sustainable energy access in African NDCs: Enhancing ambition through linking carbon markets and climate finance, August 2022.
Study on Unlocking the Caribbean's Climate Potential: Prospects of a Caribbean Alliance on Carbon Markets and Climate Finance, Juli 2023.
Studie on The landscape of Article 6 implementation, November 2023.

Media articles & other publications

Piloting Article 6: Emerging developments in market-based international cooperation, Carbon Mechanisms Review, 2019.
Closing the deal on ‚CDM transition’: How COP 25 defined new guardrails for compromise and what they mean for Africa, Carbon Mechanisms Review, 2020.
Media article on the approval of the GCF application in Senegal: IKI News Story, 10.11.20; Press Release, 12.10.20; Bericht in Carbon Mechanisms Review, 2020.
Fact sheet on good practice examples in Senegal (Final version submitted 12.7.21)
Eastern Africa Carbon Market Profile, Eastern Africa Alliance on Carbon Markets and Climate Finance, 2023:
Carbon Market Profile - Burundi, Eastern Africa Alliance on Carbon Markets and Climate Finance, 2023.
Carbon Market Profile - Ethiopia, Eastern Africa Alliance on Carbon Markets and Climate Finance, 2023.
Carbon Market Profile - Kenya, Eastern Africa Alliance on Carbon Markets and Climate Finance, 2023.
Carbon Market Profile - Rwanda, Eastern Africa Alliance on Carbon Markets and Climate Finance, 2023.
Carbon Market Profile - Sudan, Eastern Africa Alliance on Carbon Markets and Climate Finance, 2023.
Carbon Market Profile - Tanzania, Eastern Africa Alliance on Carbon Markets and Climate Finance, 2023.
Carbon Market Profile - Uganda, Eastern Africa Alliance on Carbon Markets and Climate Finance, 2023.

Events

UNFCCC:

#COP 24: Linking Carbon Markets and Climate Finance in African Countries (UNFCCC, 6.12.2018); Progress on Art. 6 – Moving towards implementation (EU Pavillon, 8.12.2018), Private-sector finance for NDC implementation in Sub-Saharan Africa (AfDB Pavillon, 13.12.2018).
#SB 50: Discussion papers on global Article 6 pilot initiatives (June 2019, Bonn).
#COP 25: Harnessing synergies between carbon markets and climate finance for achieving ambitious NDCs (IETA Pavilion, 12.12.2019)l; The role of carbon markets and climate finance for NDC implementation in developing countries: Perspectives and Seoul International Law Academy (SILA) (UNFCCC, 13.12.2019).
#COP26: Harnessing Synergies between Carbon Markets and Climate Finance for Achieving Ambitious NDCs; Official Side Event with Senegal (UNFCCC, 9.11.21).
#COP27: Policy, regional and climate finance development scenarios for renewable energy in Africa, with a focus on Ethiopia's updated NDC, Official Side Event with Ethiopia with a presentation on the Ethiopian GCF application (UNFCCC, 17.11.2022); How can SIDS harness capacity building for Article 6 cooperation? Official Side Event in cooperation with Seychelles with a presentation on South-South cooperation (UNFCCC, 15.11.22).
#COP28: The Landscape of Article 6 Implementation – State of Play and Key Developments (IETA Pavilion, 08.12.2023)
# Lecture COP28: From Durban to Dubai, Ethiopia’s journey in building a Low Emission and Climate Resilient Economy (Stocktake) (Ethiopia Pavilion, 04.12.2023):

African Climate Week:

#ACW 2019: Technical contributions to the regional workshop (17-18.03.2019) of the West African Alliance on Carbon Market and Climate Finance in the context of sub-regional capacity development (Perspectives, Climate Focus, AERA); Presentation of the project study: 'Moving towards next generation carbon markets. Observations from Article 6 pilots at the CPLC/IETA Carbon Pricing and Carbon Markets Day' (19.03.2019) (Climate Focus).
#ACW 2021 (virtual): Africa’s carbon market achievements and potential: Key insights on existing portfolios and potential for transition to Article 6, Side Event in Kooperation mit der Eastern African Alliance on Carbon Market and Climate Finance (EAA) (26.9.2021).
#ACW 2022: Financing Sustainable Energy Access in African NDCs: Guidebook launch at Africa Climate Week, Side Event (31.8.22).
#ACW 2023: Blending climate finance and carbon markets for enhancing climate action (6.9.23)
#ACW 2023 / UNFCCC Regional Dialogues on Carbon Pricing and Article 6 Training: Harnessing the Voluntary Carbon Market for NDC Implementation (7.9.2023).

Africa Climate Summit:

#ACS 2023: How synergies between climate finance and carbon markets can enhance NDC ambition in Ethiopia, Uganda and Senegal (5.9.23).
#ACS 2023 Green Growth in Africa - Concrete Actions for Carbon Market Uptake (September 5)

Latin America & Caribbean Climate Week:

#Latin America & Caribbean Climate Week 2019: Piloting Article 6 carbon market cooperation – additionality and methodological issues (Workshop, 21.08.2019).
#Latin America & Caribbean Climate Week 2022: The global relevance and experience with Art6. Readiness and capacity building, focusing on the current global status/approach, taking into account some KP/CDM lessons. Relevance of South-South cooperation and innovative formats like the Alliances (Side Event presentation by Axel Michaelowa, 21.07.2022), followed by presentations by the East and West African alliances, which are to serve as a model for the establishment of a Caribbean Alliance. The event was organized by the GIZ Global Carbon Market Project.

Innovate4Climate

#Innovate4Climate 2019: Key Lessons from Article 6 pilot activities (Workshop, 04.06.2019)
#Innovate4Climate 2020 (virtual): Long Term Strategies (LTS) as a tool to raise climate ambition – Experiences from Africa (Webinar, 17.11.2020); Article 6 Piloting: State of play and stakeholder experiences (Webinar, 9.12.2020).
#Innovate4Climate 2021 (virtual): Conditionality and Article 6: An analysis of updated NDCs in African countries (Webinar, 25.5.2021); Aligning Nationally Determined Contributions (NDCs) with Long Term Strategies (LTS) on Climate: Opportunities and Challenges in Africa (Webinar 25.5.2021); Analysing the Eastern Africa Carbon Market Portfolio (Webinar 27. 5.2021)
#Innovate4Climate 2023: The carbon market transition in Africa: CDM, Article 6 and private sector engagement (23.05.2023).

Workshops

National Workshops:

National capacity building workshop in Dakar, Senegal 2019: Carbon Market and Climate Finance support for NDC implementation in Senegal (May 2019).
National validation workshop in Saly, Senegal on GCF application with ASER and BOAD (November 2019).
National consultation workshop in Kampala, Uganda (virtual, April 2020): 3 Deep Dive Sessions for stakeholders to prepare GCF concept note; 1) Financial Barriers, 09.04.20; 2) Mitigation Potential, 14.04.20; 3) Demand Stimulation and Impact of productive use (Business model cases), 23.04.20.
National Capacity Development and Validation Workshop in Adama, Ethiopia (April 2022, hybrid): Climate-resilient community access to safe water powered by renewable energy in drought-vulnerable regions of Ethiopia. This event serves to discuss government representatives for the adoption of the Ethiopian GCF full proposal.
National CDM Transition Workshop in Dakar, Senegal: Marché carbone et la transition des projets MDP vers l'Article 6 au Sénégal après le COP26 (May 2022). For Senegalese project developers and decision-makers. The event will discuss the transition of existing CDM projects to the Article 6 framework. The workshop concept is also in high demand in other African countries.
National validation workshop (hosted by Gold Standard and ESD (March 2023): CDM transition blueprint.
CDM transition project developer workshop in Kampala, Uganda (20.11.2023).

Regional workshops:

Regional peer2peer workshop East Africa in Addis Ababa/Ethiopia: Managing the transition from Kyoto to Paris - the potential of carbon markets and climate finance for East Africa (October 2019).
Regional Capacity Development Workshop in Dar es Salaam/ Tanzania: The East Africa Climate Negotiators Pre-COP25 Forum and East African Alliance Meeting (October 2019).
Regional Capacity Development Workshop in cooperation with GIZ, East African Alliance on Carbon Markets and Climate Finance, UNFCCC RCC Kampala, Perspectives and Carbon Africa (virtual, September 2020): East African carbon market engagement: regional foundations for the implementation of Article 6. Session I - Carbon market engagement CDM Transition, 21.09.20; Session II - Key features of the Paris Agreement and NDCs, 23.09.20; Session III - Piloting Article 6, 25.09.20.
Regional Capacity Development Workshop in Lomé/ Togo: West African Alliance for Carbon Markets and Climate Finance (WAA) Workshop on Article 6 Readiness (March 2022).
Regional capacity development workshop in Kampala/ Uganda: East African Alliance on Carbon Markets and Climate Finance (EAA) Private Sector workshop (March 2022).
Regional capacity development workshop in cooperation with the West African Alliance (WAA) and the NDC Partnership (NDC-P) in Libreville, Gabon: West African Alliance member coordination meeting with the NDC-Partnership. The event serves to strengthen climate finance expertise in the WAA member countries (August 2022)
Regional capacity development workshop in Benin (West African Alliance) (July 2023)
Pan-Africa workshop:
Several events at ACS&ACW (August 2023, see above)
Workshop to prepare the AGN negotiations, jointly organized by CFI, AGN and Conservation International (3 June 2023, Bonn)
AGN COP28 preparatory workshop, jointly organized by CFI, AGN and Conservation International (3 June 2023, Bonn)
EAA COP28 preparatory workshop (June 22, 2023, virtual)
West Africa Carbon Hub: Building public and private capacity to achieve the goals of the Paris Agreement. Joint event of IETA, B-PMI and WAA with a session on CDM Transition (September 26-28, 2023, Abidjan/ Côte d'Ivoire)

Other workshops & events:

Discussion contribution on global Article 6 pilot initiatives at a workshop organized by GIZ (March 2019) (Climate Focus).
Short presentation Climate Finance Innovators project at the NDC Investment Forum (March 2019) (Carbon Africa).
Online seminar: Next Generation Carbon Markets (September 2019).
Workshop in Dar es Salaam, Tanzania for the inaugural meeting of the East African Alliance on Carbon Markets and Climate Finance (EAA) (October 2019).
IKI Brown Bag Lunch: Piloting Article 6 in Africa (November 2020).
ICAP-IETA Carbon Markets Virtual Pavilion on 12.11.20: Developments in Article 6 Piloting - Stakeholder Experiences (November 2020).
Webinar: Kenya Youth Carbon Market training: Presentation of the Article 6 Pilot Study and the EAA Carbon Market Profiles (June 2021).
ICAP workshop: Challenges and Opportunities for Carbon Pricing in Africa: The Transition from Crediting to Conformity Markets with a presentation on Implementing Article 6 in Africa: State of Play and Stakeholder Experiences (February 2022).
Focus Group Discussion at African Climate Week 2022: Discussion on "Program of Activities under Article 6 at Africa Climate Week" (September 2022).
ASER's GCF kick-off workshop: Atelier de lancement GCF ASER / BOAD (December 2022) (AERA).
NDC-P Conference (31 May-2 June 2023, Berlin): Organization and moderation of a breakout group.

Latest Update:
11/2024