AfDB Partnerships Forum Towards Green Growth in Africa: Sharing initial perspectives from AfDB’s evolving work

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AfDB Partnerships ForumTowards Green Growth in
AfricaSharing initial perspectives from AfDBs
evolving work

• Hela Cheikhrouhou,
• Director -Energy, Environment and Climate Change
  Department (ONEC)
• African Development Bank

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Structure of Presentation

• _______________________________________
• The rationale for Green Growth
• Emerging Strategic Thinking
• Opportunities for Partnerships and Collaboration

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Towards a Definition of Green Growth

• In a first working definition, Green Growth is
  framed as a transformative development model for
  enabling sustainable growth and creating
  prosperity by taking a holistic approach to
  development, which
• values human, social and natural capital,
• efficiently and sustainably uses ecosystem goods
  and services, and
• builds resilience in a changing world, where
  countries, industries and people are increasingly
  interconnected.
• (Draft working definition, March 2012 )

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I. The rationale for Green Growth
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Green Growth Adapting to changing realities for
development

• Existing and Emerging Challenges to Africas
  Development

•  
• Rapid Population Growth
• Urbanization
• Globalization , economic volatility and shifting
  consumption patterns
• Uneven economic growth
• Lack of energy access
• Lack of access to markets
• Lack of education
• Air and water pollution
• Land degradation
• Depletion of natural resources
• Disaster Risk and Climate change
• Existing and Emerging Challenges to Africas
  Development
•  
•  
•  

• Insert Picture

Discussed in greater detail in presentation
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Issue Population Growth and Demographic Change

• Population Growth has implications for

• Food Security
• Consumption patterns
• Natural Resource Use
• Land
• Urban and Rural Infrastructure
• Public services
• ? Population growth needs to be turned into an
  advantage (demographic dividend) through
  forward looking education, skills development and
  economic diversification

Africas total population is projected to
increase from 1 billion to about 1.6 billion by
2030. The trend is accompanied by an increase in
working-age and urban populations. Source AfDB,
Adapted from United Nations Economic Social
Affairs, Population Division
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Issue Climate Change

• Mitigation

• Low aggregate/per capita emissions, but
• Avoiding dangerous levels of global warming
  requires global action (with differentiated
  responsibilities)
• ? Development/growth needs to be decoupled from
  greenhouse gas emissions
• ? Mitigation opportunities for Africa RE
  Potential, Carbon Sequestration in Forestry and
  Agriculture Sectors

Most of Africas crops will likely be adversely
affected by climate change Projections for
2045-65 relative to 1961-2000 (Source Schlenker
and Lobell 2009)

• Adaptation

• Africa is already insufficiently adapted to
  current climatic hazards, e.g. windstorms
  (cyclones), floods, droughts, resulting in
  disaster and famines
• Among most vulnerable regions to climate change
  due heavy natural resource dependency of
  livelihoods and economic sectors and limited
  adaptive capacity
• Sensitive sectors include agriculture (food
  security), urban (disaster risk), health (water
  and vector borne diseases)
• ? Climate Risk Management is essential to Green
  Growth and Sustainable Development

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Issue Land Degradation

• Land degradation

• Map to be inserted

• undermines land productivity and poses a risk to
  food security
• impacts on the quality of ecosystem services
• deforestation and soil degradation contribute to
  climate change
• ? Green Growth requires integrative approaches to
  land-use, focused on increasing productivity and
  food-security, while minimizing degradation of
  Africas natural assets

Land degradation affects large parts of Africa.
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Issue Economic resilience in a globalized world

• Globalization provides new opportunities, but
  also creates new risks through increasing
  inter-dependence
• ? Increasing resilience to exogenous economic
  shocks is critical, as African economies move
  forward

Changes in world prices for key African
agriculture exports during 2012. African
livelihoods and economies are heavily dependent
on agriculture. Increasing integration into world
markets provides opportunities for growth but
also increasing exposure to market price
fluctuations. Source AfDB
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Green Growth Seizing new opportunities

• Opportunities for Sustainable Development
  Pathways ( A Selection)

• Leap-frog to efficient technologies The urgent
  need to up-scale Africas energy, transport an
  urban infrastructure, represents the opportunity
  to leap-frog to energy and resource efficient
  solutions with co-benefits for human health (e.g.
  reduction of air pollution) and the environment
  (e.g. maintenance of ecosystem goods and
  services)
• Africas new asset carbon Maintaining/increasin
  g the carbon stored in Africas forests and land
  represents to limit global warming constitutes an
  opportunity for accessing new and emerging
  revenue streams, e.g. REDD (a performance based
  payment transfer scheme for reducing emissions
  from deforestation and degradation)
• Harness the demographic dividend Africas total
  population as well as the working age population
  is increasing rapidly. With appropriate education
  and capacity development, this represents need
  opportunities for economic diversification and
  business development.

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Advancing Green Growth Proposed Guiding
Principles for Engagement in Africa

• Development-Centered Emphasis on growth and
  poverty alleviation
• Client-Oriented African countries choose their
  development pathways. AfDB can act as a catalyst
  for Green Growth financing and implementation
  efforts.
• Inclusive Aims at promoting gender equitable and
  pro-poor economic growth.
• Participatory A harmonized approach to Green
  Growth is needed at the country, regional and
  global level, aligning the skills and comparative
  advantages of stakeholders.

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II. Towards a Strategic Approach
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Advancing Green GrowthProposed pillars and key
focal areas
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AfDBs Approach

• The African Development Bank recognizes that a
  new growth paradigm is required in order to
  ensure that economic growth is socially inclusive
  and environmentally sustainable and also utilizes
  new growth drivers that can broadly be linked to
  a Green Economy.
• The added value of AfDB engagement in Green
  Growth lies in framing a practical concept for
  Africa from the perspective the regions
  multilateral development bank. AfDB has to
  function as a catalyst in terms of ideas and
  practical concepts, technical assistance and
  financial support for its Regional Member
  Countries (RMCs).
• For this purpose the development of the AfDBs
  strategic engagement in Green Growth will be
  addressed through three work-streams (WSs)
• WS1 Development of AfDBs Green Growth Strategy
  (GGS)
• WS2 Knowledge and Capacity Development
• WS3 Strategic and Operational Engagement with
  RMCs

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III. Opportunities for Collaboration___________
__________________________

• Awareness Building
• Technical Assistance
• Implementation and Financing Partnerships

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Opportunities for Partnerships and Collaboration

• Cooperate Level

• County Level

• Strategy Development financing and development
  of country strategic frameworks and investment
  plans for RMCs.
•  
• Implementation co-finance Resource mobilization
  and co-financing of green growth operations
  across various sectors.
• Advisory work Advising Regional Member countries
  on options for integration of green growth
  considerations in national development plans.
• Private sector Public private sector
  partnerships on Green Growth Economy, enterprise
  development
• Civil society engagement Building inclusiveness
  through engagemnt with NGOs, business
  associations, community organizations and citizens

• Knowledge development Financing/collaboration in
  upstream technical analysis of cost effective
  development pathways towards Green Growth
  (identification of options).
• Awareness building Highlighting Africas Green
  growth / green economy opportunities and
  challenges among international organizations,
  governments and investors as well as providing a
  platform for engagement of different actors.

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Thank you. Merci

• Further contacts

• Hela Cheikhrouhou
• Director, ONEC
• Co-Chair Green Growth Strategy
• Frank Sperling
• Chief Climate Change Specialist, ONEC.3
• TTL, GGS
• Emails firstnameinitial.lastname_at_afdb.org

• Aly Abou-Sabaa
• Chair, CCCC
• Co-Chair Green Growth Strategy
• Vinaye Dey Ancharaz
• Principal Research Economist, EDRE.2
• Co-TTL, GGS

Disclaimer The presentation outlines a set of
ideas and perspectives for Green Growth in Africa
and the African Development Banks engagement.
AfDB is currently in the process of developing
its strategic thinking on Green Growth. Hence,
any opinions and view points presented here
should not be interpreted as official opinions of
AfDB, attributed to the institution or any of its
affiliated members and partners as official
policy or strategy.