With the support of the Climate Action Programme, Cape Verde will have its first Strategic Climate Support Mobilization Plan (PEMAC), based on a holistic approach and integrated with the country’s strategic planning. It will be a strategic plan prepared and designed in close collaboration with all the key sectors of the Public Administration, which will allow everyone to take it on board quickly, as well as greater sectoral alignment not only in the mobilization of resources, but also in the implementation of Cape Verde’s climate strategy.
With the intensification of climate change and its impacts on the economy and people’s lives, it has never been more urgent to mobilize resources to meet the challenges posed by these changes. Climate finance, both at national and international level, has become essential to mitigate environmental impacts and adapt societies to new realities. This article discusses the climate resource mobilization strategy, with an emphasis on the actions and structures that are being implemented to ensure that developing countries, such as Cape Verde, can face climate challenges efficiently and sustainably.
The climate resource mobilization strategy has a holistic approach that aims to use national and international funds to support climate change mitigation and adaptation initiatives. The analysis includes a review of global commitments and strategies, such as the Paris Agreement, as well as an assessment of available funds and financial mechanisms, such as the Green Climate Fund, the Global Environment Facility, the World Bank, the African Development Bank and others. The article also explores the barriers to climate finance and proposes a strategic plan for mobilizing climate support in Cape Verde, with recommendations for strengthening the financial infrastructure and local capacities.
The global climate context requires urgent action to reduce emissions and promote effective adaptation to the changes that are already underway. The main objective of this strategy is to provide an effective climate finance structure that allows the most vulnerable countries, such as Cape Verde, to implement climate projects and policies in a sustainable and financially feasible way. Integrating climate objectives into development policies and increasing international cooperation are key aspects for the success of this strategy, and are therefore an indispensable factor for its implementation.
Global climate finance is based on international commitments established mainly under the Paris Agreement, in which countries commit to reducing their emissions and financing adaptation and mitigation actions. The International Financial Institutions play a crucial role in implementing these strategies. As such, they are indispensable in facilitating access to climate funds for both developed and developing countries, especially those most vulnerable to climate change, such as Cape Verde.
Climate finance covers a variety of concepts, including resources for mitigation, adaptation, loss and damage. Resource mobilization involves public and private sources, with international cooperation being an important part of the process, but not necessarily the only one. On the one hand, climate finance mechanisms aim to reduce the costs of actions to combat climate change and support the transition to a low-carbon economy. However, on the other hand, the national commitment to implementing best practices when it comes to implementing climate policies, as well as endogenous climate finance mechanisms, must be based on and explicit in any strategy that is robust and sustainable.
It is from this perspective that Cape Verde’s Strategic Climate Support Mobilization Plan was conceived.
Cape Verde has several national mechanisms to support climate action. These include the National Environment Fund, which supports sustainability projects, and the recently created Climate and Environment Fund, which aims to finance adaptation and mitigation actions. These funds are essential for strengthening the country’s environmental policies, as they provide the necessary resources to deal with the impacts of climate change. There are also a number of more specific mechanisms, focusing on emergencies and promoting private investment.
In addition to domestic resources, Cape Verde also benefits from a number of international mechanisms. The Green Climate Fund (GCF), the Global Environment Facility and the Adaptation Fund are the main international funds that finance climate action in developing countries. Other mechanisms, such as the World Bank, the African Development Bank, the European Union and Bilateral Partners, offer financial support for mitigation and adaptation projects. These international partnerships are vital to increasing Cape Verde’s capacity to respond to climate challenges.
A concise strategy that is coherent with the country’s planning and development will make it easier for Cape Verde to access these funds.
Thus, the climate finance architecture is complex and involves various actors and sources of funding. As the availability of resources increases, challenges arise related to coordination between the different funds, transparency in the use of resources and the evaluation of results. It is essential that Cape Verde develops effective mechanisms to manage this complexity and ensure that resources are allocated efficiently.
The climate finance sector has made significant progress in recent years. Growing awareness of the climate crisis and international pressure have encouraged more and more countries to increase their commitment to climate finance. Current trends show a greater emphasis on long-term investments and a growing involvement of the private sector.
Although Cape Verde has adopted ambitious climate policies, the scarcity of financial resources remains a significant challenge. However, the country presents opportunities, namely its strategic position for renewable energy projects, blue economy, green economy, biodiversity, which can attract international climate investment.
Cape Verde currently receives support from international funds and national financial mechanisms, but there is still great potential to mobilize more resources. Collaboration between the government, the private sector and international partners will be crucial for Cape Verde to achieve its climate goals.
It is with this in mind that PEMAC proposes a systematic approach to obtaining climate resources. The methodology involves identifying the barriers to financing, defining concrete actions to overcome these barriers and evaluating the results and impacts. In order to align mobilization strategies with Cape Verde’s long-term objectives, the analysis was based on the Theory of Change (ToC) and the Theory of Action (ToA).
The process of mobilizing climate support must be continuous and include the participation of all stakeholders, from the government to local communities. Obtaining international funds and applying public policies to encourage the private sector are crucial steps in this process.
The mobilization of climate resources must be staggered, with clear deadlines for implementing projects, monitoring results and adjusting strategies. Aware of this, it must not shy away from the great challenge of limited internal capacities, the complexity of the processes for accessing international funds and the need to integrate climate actions into national development policies.
In conclusion, it can be said that mobilizing climate resources in Cape Verde requires an integrated approach involving the government, the private sector and international partners. Creating a solid financial infrastructure and improving local skills are essential for the success of the strategy. It is also crucial to strengthen collaboration between the various stakeholders and ensure that resources are allocated transparently and efficiently, with a focus on tangible results in climate change mitigation and adaptation.
Author
Gilson Pina
National Planning Director
Ministry of Finance