The African Development Bank has extended financial support to a project that will strengthen the efforts of West African countries, including Nigeria to meet their Nationally Determined Contributions (NDCs) targets under the Paris climate accord.
The Bank will underwrite the preparation of concept notes exploring the use of internationally transferable mitigation outcomes (ITMOs) in selected West African countries.
The project is financed through the African Climate Technology and Finance Center and Network (ACTFCN), a Bank-managed initiative that draws on funds from the GEF Trust Fund and the Special Climate Change Fund. The project is being implemented by a consortium led by Triple E Systems.
“This intervention will put in place a robust platform, including processes, procedures and structures that will ensure real and practical participation of the West African sub-region in the use of ITMOs to deliver some of their NDC aspirations. It will form the basis for the replication of these activities in other African countries,” said Gareth Phillips, Manager of Climate and Environment Finance at the African Development Bank.
The initiative will help governments develop technical capacity and institutional infrastructure to enable the private sector to access new sources of climate finance as well as promote new financing mechanisms for energy efficiency and mitigation projects.
ITMOs promote low carbon technologies and accelerate the implementation of projects and programs for energy efficiency projects. The process involves the implementation of an approved project that reduces greenhouse gas emissions and creates mitigation outcomes utilizing approved accounting procedures. These steps are followed by the transfer of the mitigation outcomes from the host party to a buying party. Corresponding adjustments in the registries of both parties ensure environmental integrity.
The Paris agreement permits the use of markets for the transfer of ITMOs between countries to meet the commitments contained in their NDCs.
The project will also leverage the active engagement of several West African countries in climate negotiations, particularly around Article 6 of the Paris accord, and the activities of the West African Alliance for Carbon Markets and Climate Finance (the West African Alliance or WAA), which provide the opportunity to expand the reach of carbon pricing to enable full implementation of NDCs.
ACTFCN aims to support sub-Saharan African member countries in scaling-up the deployment of low-carbon and climate resilient technologies for climate change mitigation and adaptation.