KCIC Takes Part in Discussions to Identify Opportunities in Climate Financing
Kenya Climate Innovation Center (KCIC) this week took part in a workshop on Legal Readiness for Climate Finance hosted at a Nairobi hotel. This seminar was organized by King’s College London, Standard Chartered Bank and UN Environment. It deliberated on laws and regulations that support access to climate finance.
Few financial institutions, particularly banks, consider climate change as an issue that can have negative effects on their businesses. As such many climate-smart ventures still do not get a pipeline for financing thereby ending up just as ideas. This even as debate on climate change rages on at the global and local scenes with, governments and the private sector being called upon to join hands in mitigating the effects of climate change.
It was appreciated that in order to effectively address climate change, there is need for increased financial flows both from the private sector and governments. And in order to mainstream wide-scale “green financing”, regulators, policy makers and practitioners need to work jointly and in a coherent manner to put in place and implement laws, policies and other regulatory frameworks that support access to climate finance.
Finances can be leveraged from green bonds, carbon pricing, feed-in tariffs, subsidies, climate trust funds, green investment banks as well as blended finance from loans, grants, guarantees and insurance. Green bonds are for instance now being utilised globally as a financing mechanism for green initiatives. They are used to finance projects in renewable energy, energy-efficiency, green transport and waste treatment.
Climate finance is intended to work towards enabling investments reduce carbon emissions as a way of helping countries realise the National Determined Contributions in line with the Paris Agreement (on climate change).
By Vincent Ogaya