Download Green Growth - African Development Bank

AfDB Partnerships Forum
Towards Green Growth in Africa:
Sharing initial perspectives from AfDB’s evolving work
Hela Cheikhrouhou,
Director -Energy, Environment and Climate Change
Department (ONEC)
African Development Bank
Structure of Presentation
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o The rationale for Green Growth
o Emerging Strategic Thinking
o Opportunities for Partnerships and Collaboration
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 )
I. The rationale for Green Growth
Green Growth: Adapting to changing realities for development
Existing and Emerging Challenges
to Africa’s Development
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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 *
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Existing and Emerging Challenges to Africa’s Development
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* Discussed in greater detail in
presentation
• [Insert Picture]
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
Africa’s total population is projected to
increase from 1 billion to about 1.6
billion by 2030. The trend is
accompanied by an increase in workingage and urban populations.
Source: AfDB, Adapted from United
Nations Economic & Social Affairs,
Population Division
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
Adaptation
•
Most of Africa’s crops will likely be adversely
affected by climate change: Projections for 2045-65
relative to 1961-2000
(Source: Schlenker and Lobell 2009)
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
Issue: Land Degradation
Land degradation:
• …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 foodsecurity, while minimizing
degradation of Africa’s natural assets
• [Map to be inserted]
Land degradation affects large parts of
Africa.
Issue: Economic resilience in a globalized world
• Globalization provides new
opportunities, but also creates
new risks through increasing
inter-dependence
 Increasing resilience to exogenous
Changes in world price’s for key African
economic shocks is critical, as African agriculture exports during 2012. African
economies move forward
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
Green Growth: Seizing new opportunities
Opportunities for Sustainable Development Pathways ( A Selection)
Leap-frog to efficient technologies: The urgent need to up-scale Africa’s
energy, transport an urban infrastructure, represents the opportunity to leapfrog 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)
Africa’s new asset – carbon: Maintaining/increasing the carbon stored in
Africa’s 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: Africa’s 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.
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.
II. Towards a Strategic Approach
Advancing Green Growth:
Proposed pillars and key focal areas
Proposed Pillars for Green Growth
I
Providing Sustainable
Infrastructure
II
Efficient/Sustainable Use of
Natural Assets
III
Building Resilience and Adaptive
Capacity
RE/Low-carbon Energy Access
Land (Agriculture, Forests and
other land-uses)
Physical/Climate
Sustainable Transport
Water (Freshwater, marine)
Economic
Sustainable Cities
Minerals
Social
X-Cutting Issues
Private Sector, Regional Integration, Gender, Youth
AfDB’s 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 region’s 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 AfDB’s strategic engagement in Green
Growth will be addressed through three work-streams (WSs):
(i) WS1: Development of AfDB’s Green Growth Strategy (GGS)
(ii) WS2: Knowledge and Capacity Development
(iii) WS3: Strategic and Operational Engagement with RMCs
III. Opportunities for Collaboration
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• Awareness Building
• Technical Assistance
• Implementation and Financing Partnerships
Opportunities for Partnerships and Collaboration
Cooperate Level
Knowledge development:
Financing/collaboration in upstream
technical analysis of cost effective
development pathways towards
Green Growth (identification of
options).
Awareness building: Highlighting
Africa’s Green growth / green
economy opportunities and
challenges among international
organizations, governments and
investors as well as providing a
platform for engagement of different
actors.
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
Thank you. Merci
Further contacts:
Hela Cheikhrouhou
Director, ONEC
Co-Chair Green Growth Strategy
Aly Abou-Sabaa
Chair, CCCC
Co-Chair Green Growth Strategy
Frank Sperling
Chief Climate Change Specialist, ONEC.3
TTL, GGS
Vinaye Dey Ancharaz
Principal Research Economist, EDRE.2
Co-TTL, GGS
Emails: [email protected]
Disclaimer: The presentation outlines a set of ideas and perspectives for Green Growth in Africa and the African Development
Bank’s 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.