Climate finance flows in West Africa: mapping to improve access to climate finance
West Africa: climate finance flows are increasing steadily, but still far from commensurate with the needs
Climate finance derived solely from multilateral funds allocated to countries in the ECOWAS-CILSS (Permanent Intercountry Committee for Drought Control in the Sahel) region between 2003 and 2018 have been estimated to amount to approximately $1.4 billion – around 23% of all multilateral climate finance available worldwide for the period in question.
Meanwhile, the Green Climate Fund (the main financial mechanism for the United Nations Framework Convention on Climate Change (UNFCC)) alone has approved 20 projects in West Africa, amounting to some 16% of the fund’s global portfolio since 2015. These 20 projects correspond to a total budget of $3.8 billion, 80% of which is for multi-country projects; this represents a little more than 18% of the total amount invested via this fund (including both funding and co-funding). Forty-six additional projects directed at the region are currently being examined.
However, this amount of funding still falls far short of the huge needs expressed by the 17 countries in the region to mitigate and adapt to the effects of climate change. For instance, the funding needs identified in nationally determined contributions (NDCs) in 2015 amounted to a total of some $340 billion for 2015-2030 – solely in the area of reducing greenhouse gas emissions. In other words, despite the increase in climate finance destined for the ECOWAS-CILSS region in recent years, much remains to be done if the expressed needs are to be anywhere near met.
Tracking and monitoring financial aid received: an obligation under the Paris Climate Agreement
The transparency framework defined in the Rulebook for countries party to the Paris Climate Agreement requires them to monitor and report financial support received to implement their nationally determined contributions (NDCs). Some of the 17 countries within ECOWAS-CILSS are already in the process of implementing this monitoring.
However, making comparisons is difficult: tracking methods (including, for instance, the definition of which projects are climate-related, a decision that depends on each country’s strategic decisions and sovereignty) and monitoring measures both differ from country to country. Matters are further complicated by the fact that in multi-country projects, it is not always easy to track the ‘share’ of funding allocated to each country of intervention.
In the light of these three issues, developing a harmonised method and coordinating monitoring initiatives at a regional level constitute major challenges for all countries concerned.
ECOWAS’ regional mandate: a first step towards addressing these issues?
ECOWAS’ mandate means it has a role to play in monitoring climate finance allocated to the region. It does so in a number of ways:
• helping to harmonise the methodological framework for monitoring financial support received and offering capacity-building assistance at the request of States, either through experience-sharing within the ECOWAS-CILSS region, or by means of direct technical support;
• providing complete, accurate, and up-to-date information about available resources, in order to improve planning and coordinate action at country level;
• helping to rebalance climate finance across the region, working on the principle of solidarity and informed by the information gathered;
• striving to implement a framework of transparency to improve monitoring and evaluation of the actual impacts of the finance received.
ECOWAS has also developed initiatives to support the sectors most severely affected by climate change, such as agriculture and food. It can also ensure climate finance is coherent and complementary alongside other financial mechanisms (both climate-related and non-climate-related) that are already monitored. To help achieve this, the ECOWAS Bank for Investment and Development (EBID) has begun a process of accreditation with the Green Climate Fund.
A mapping designed to provide complete, accurate, up-to-date information about available financial resources
With the technical support of the GCCA+ West Africa project, ECOWAS has embarked on a process with the 17 countries in the ECOWAS-CILSS region to institutionalise regular monitoring of climate finance directed to the region.
The publication of a first mapping report marks a major milestone in this long-term project. Acclaimed by all the countries in the region, it highlights the importance of financial flow analysis becoming a long-term process.
Launched on 17 September 2020 at a regional workshop, the purpose of the project is to supply complete, accurate, up-to-date information on available resources to finance climate action, on a regular basis. The resource has been designed for use by several types of stakeholder:
• enabling policymakers to determine performance in resource mobilisation, identify weaknesses to be remedied at various levels, and encourage partnerships and experience-sharing; it gives them an objective basis when reporting on the financial support needed and received, so that they can abide by their commitments pursuant to international cooperation on climate affairs;
• allowing regional institutions to provide better guidance and coordination in their support to countries in the light of any weaknesses identified;
• enabling ‘transparency stakeholders’ to have access to information about the resources used and where they are directed;
• allowing researchers working on climate finance to have a regional overview of the needs and challenges involved.
An ad hoc working committee was set up after the September workshop. Coordinated under the auspices of ECOWAS with technical support from the GCCA+ West Africa project, the mission of the committee is to develop a methodological approach to the regional monitoring of climate finance that can be institutionalised over the long term.
Download the first finance mapping report on ECOWAS-CILSS climate finance, as submitted to the UNFCCC Secretariat.