African Development Bank and IFAD collaborate to help Mozambique build knowledge on climate finance and Natural Capital
Mozambique remains one of the countries most impacted by climate change in Africa, having faced a number of climate shocks and disasters over the past years that have hampered economic development. Temperature rises, scarce rainfall and droughts, floods and cyclones, have had significant impacts on key sectors such as agriculture, fisheries, and tourism, among others.
In response to these challenges, the African Development Bank and the International Fund for Agricultural Development (IFAD), have positioned themselves to actively support the Government of Mozambique’s efforts to take action. Mozambique has ambitions to further analyse and acknowledge the scale of climate change impact on the country and its economy, as well as take steps to identify sustainable solutions to these challenges.
The Government of Mozambique is already taking direct action to enhance its readiness through the establishment of a National Advisory Committee (NAC) comprising different ministries and institutions, and led by Ministry of Economy & Finance. As part of this initiative, a team from the Ministry of Economy & Finance - MEF (and partner institutions), with support from the IFAD - Pro-poor Value Chain Development Project in Maputo and Limpopo Corridors (PROSUL), participated in a two-week capacity building training on Climate Change and Climate Finance. The training was held in Lisbon, Portugal, in June 2018. The beneficiaries were a multi-sectoral team which included the National Deputy Director for the Department of Monitoring & Evaluation and technicians from the Departments of Monitoring & Evaluation and Treasury of the Ministry of Economy and Finance, the National Institute for Educational Development and the National Fund for Agrarian Development (FDA).
The broader aim of the training was to enhance the capacity of government staff on climate change aspects, but above all to provide the necessary tools and knowledge related to climate finance.
The specific objective was to enhance knowhow on climate funds – the Green Climate Fund (GCF), the Adaptation Fund and the Global Environmental Fund (GEF), among others. It also aims to ensure good understanding of the accreditation process, modes of financing, and how to approach, plan and manage the process for accessing climate funds.
This training is part of ongoing support to departments within the Ministry of Economy and Finance. Firstly, support to the Focal Point for the GCF (to engage with the private sector to formulate a pipeline of bankable projects that could be funded by the GCF; secondly, support towards the implementation of the Natural Capital Program, provided in partnership with WWF. The Natural Capital program is an initiative co-led by the finance ministry and the Ministry of Land, Environment and Rural Development (MITADER), which contributes to the implementation of the Government’s Green Economy Roadmap (GER) which has the goal of positively impacting climate resilience, economic productivity and inclusive prosperity.
''This was an opportunity to better understand how the NAC will further develop the National Climate Finance Strategy and coordinate its implementation across Ministries, and with other partners and stakeholders'', said Sonia Da Silveira - GCF focal point in Mozambique within MEF.
The effort and support provided to Mozambique by the Bank/WWF and IFAD demonstrate the importance of capitalising on synergies and partnerships. Whereas institutions working in the climate space differ in areas of comparative advantage, all have a role to play. In the context of Mozambique’s priorities, climate mitigation and adaptation inherently speak to the concept of Natural Capital, and provide an opportunity to consider how climate finance may be deployed to achieve multiple benefits, including, for example, improved management of stocks of natural assets (water resources, forests, soils), in Mozambique.