Aligning Financial Flows with the Paris Agreement in Africa
Article 2.1 c of the Paris Agreement (PA) represents a global goal for countries to make their financial flows (FF) consistent with low greenhouse gas emissions and climate-resilient development. The project aims to formulate evidence-based options for aligning FF with the PA in a way that encourages the presentation of ambitious mitigation and adaptation actions in future NDCs and long-term strategies of African countries. The project develops a systematic assessment of potential volumes and sources of FF to be aligned with the PA. The project also identifies and analyses sectoral prospects for the re-investment of FF and leveraging existing funding to high-risk countries to attract sustainable/green financing for climate adaptation. A vital component of the project is knowledge brokering, enabling the convening, sharing and exchanging of emerging evidence from the target countries with a broader group of African countries that reflect similar pathways.
- Countries
- Ethiopia, South Africa, Mozambique
- IKI funding
- 997,399.00 €
- Duration
- 09/2021 till 06/2025
- Status
- open
- Implementing organisation
- SouthSouthNorth
- Political Partner
-
- African Group of Negotiators (AGN)
- Department of Forestry, Fisheries and the Environment (DFFE) - South Africa
State of implementation/results
- In 2024, the project has published four papers, focusing on exploring operational pathways for operationalising Article 2.1 (c) of the Pars Agreement in Africa:
- "A Case of High Carbon Financial Assets and Financial Sector Transformation in South Africa". This paper conducts a deep dive into the case of South Africa, a nation heavily reliant on coal for electricity generation yet committed to reducing its carbon footprint.
- "The Case of Financing Climate Resilient Infrastructure in Africa". This pathway paper provides a roadmap towards operationalising Article 2.1(c) of the Paris Agreement within the context of infrastructure development in Africa.
- "Navigating Economic Growth and Climate Objectives – Managing Newly Discovered High Carbon Assets in Mozambique". This paper examines how Mozambique can adopt a strategic approach to managing its high-carbon asset endowments in a way that balances economic imperatives with climate considerations by operationalising Article 2.1 (c).
- "Advancing Sustainable Finance for Clean Energy Access: Safeguarding Rural Household Financial Assets in Ethiopia". This paper interrogates how advancing sustainable finance under policy frameworks guided by Article 2.1 (c) can bring about a paradigm shift and spark an exponential expansion of affordable universal clean energy access in countries such as Ethiopia.
- The project participates in the Sharm el-Sheikh Dialogue (SeS Dialogue) which was established between Parties, relevant organizations and stakeholders to exchange views on and enhance understanding of the scope of Article 2.1(c) of the PA and its complementarity with Article 9:
- At the 3rd workshop of the SeS Dialogue in Bonn, Germany (12-13 June 2024), held during the SB 60 Sessions in Bonn, the project lead reported back to the plenary on integrating sustainable development into the implementation of Article 2.1(c).
- At the 2nd workshop of the SeS Dialogue in Geneva, Switzerland (3-4 October 2023) the project led a breakout session on mapping potential intended and unintended consequences in implementing Article 2.1(c) of the PA, along with potential safeguards to prevent greenwashing for just and equitable pathways towards low GHG emissions and climate-resilient development.
- At the 1st Workshop of the SeS Dialogue in Bangkok, Thailand (19-20 July 2023) the project facilitated a breakout group session on exploring the complementarity of Article 2.1(c) and Article 9 of the PA and also presented emerging findings from the project in a session titled "Measuring Collective Progress of Article 2.1(c), including for Public and Private Finances on the Domestic and International Level, and about Article 9".
- The project hosted a webinar on "Exploring Pathways for Operationalising Article 2.1(c) of the Paris Agreement in Africa", bringing together experts and stakeholders to discuss integration strategies within NDCs of African countries. The team presented the projects four key pathway papers (3 October 2024).
- The project participated in climate finance sessions at the Africa Climate Week (4-8 September 2023), including "Financing Adaptation: How Can Africa’s Banks, Insurers, and Investors Collaborate with the Public Sector to Scale Finance for Adaptation in the Region?" which has synergistic links to climate-resilience components of the project.
- The project published a blog examining key insights from the Sharm El-Sheikh Dialogue on Article 2.1(c), held during the 60th UNFCCC Subsidiary Body Session in Bonn, Germany. It highlights the importance of aligning financial flows with climate-resilient pathways to ensure sustainable development and climate justice.
- In 2022, the project collaborated with the Southern Africa Climate Finance Partnership (SACFP) to host the COP27 Africa Regional Resilience Hub event "Innovative Financing for Just Transitions".
- All project outputs, events, and news will be published on the project webpage (southsouthnorth.org/…), which also houses the project fact sheet (southsouthnorth.org/…).
Latest Update:
04/2025
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