108 African Development Bank — Advancing Climate Change Action and Green Growth in Africa Improving the quality of life for Africans including through safely managed water supply and sanitation is an important goal of the Bank. Safely managed water supply and sanitation also enhances resilience to climate change including related waterborne diseases. Access to safely managed drinking water services is missing the Bank’s targets but access to safely managed sanitation is meeting the Bank’s targets. However, the need for safely managed water supply and sanitation remains great for many countries across Africa. Importantly the Bank is vastly exceeding its own targets contributing to the number of people with improved access to water and sanitation services. In other good news, resilience to water shocks is also exceeding the Bank’s targets. There is evidence of adaptation planning in Africa, indicated by national plans, strategies, laws, or policies, but not in every RMC. At the same time, such planning is only part of a wider set of adaptation considerations and actions. Unfortunately, there are many challenges reflecting the diversity of situations faced by RMCs. Challenges and barriers include exogenous factors such as military and political crises, which when we have 54 RMCs (i.e. over a quarter of all UN member states), will be an issue at some stage. Institutions are a key issue, including policies and the organizational capacity needed to support policies and adaptation interventions. Knowledge is another challenge, for example, on the issue of climate change or the interventions that are possible. The need for finance is another recurring theme. Political will is also a challenge. Pillar 2 on mitigation and low carbon development Pillar 2 of the CCAP2 is mitigation and low-carbon development. Existing development models in Africa and from across the world involve industrialization and GHG emissions. The challenge is to progress development objectives while limiting per capita GHG emissions growth, and ultimately achieving low carbon development. When it comes to GHG emissions and development, total GHG emissions have grown as human development levels have increased, but per capita GHG emissions remain low and below the global per capita GHG emissions needed in 2030 to limit climate change. Meanwhile, human development and per capita GHG emissions levels vary across Africa. At the aggregate level, GHG emissions are growing from energy, AFOLU activities, as well as industrial processes and water. However, at the beginning of the CCAP2 period, land use change emissions appear to have dropped. Despite this, AFOLU still accounts for a majority of Africa’s GHG emissions. Fifty-three of the Bank’s 54 RMCs have submitted NDCs or INDCs. Most of these NDCs include targets that, if converted into per capita terms, are well below the global per capita level required in 2030 to be on path towards fulfilling the Paris Agreement. However, the extent to which these targets are viable or likely to be achieved remains to be seen. The most ambitious targets are conditional, requiring finance from abroad. Energy is an important area for mitigation and low-carbon development, hence lighting up and powering Africa is central to Pillar 2. While energy-related emissions are relatively low across Africa, industrialization requires energy to grow and households need energy to improve quality of life. The choices made to light up and power Africa will have a strong bearing on whether we have low-carbon development. With regards to progress against targets, the share of population with access to clean cooking solutions falls well short n mobilising climate e, regardless of source and aligned lient low-carbon development, chieving such development. The d practices supported by investments lock in or lock out GHG emissions for a me. As such, increasing the percentage t supports climate-resilien low-carbon essential. Prior to the COVID-19 AfDB was reaching its targets, with a all projects accessing climate finance ar 2020 saw a drop off, with 32% of as being climate finance. A other is the inclusion of clima e change at the design phase of projects. centage of climate finance around ocused on mitigation. However, given d the impacts of climate change in had the target of parity between daptation finance. The AfDB has arget in 2020 with 63% of finance ptation, up from 36% in 2016. uld be noted that havi g a 50:50 ptation and mitigation finance is rary, as it does not necessarily align ds. A 50:50 ratio is only optimal if the to ensure resilience is the same as the to ensure low-carbon development for o note that there are many possible ate finance. This includes taxes, international levies, capital markets, corporations, as well as households (Figure 45). The AfDB, as a multilateral development bank, is one of many possible managers of this capital. Meanwhile, the AfDB and ther managers of capital h ve range of financial instruments th t can be de loyed to support project owners. Finance for projects that support climate-resilient and low-carbon development can be counted as climate finance. Other finance may be benign without a direct influence on GHG emissions or climate resilie ce. Together with adaptation and mitigation finance, benign finance can be included as climate-compatible finance (Figure 46). Meanwhile some finance may increase GHG emissions or increase climate change erview of climate finance sources, managers, instruments, and projects Figure 46: Climate-compatible finance categories Adaptation finance Finance supporting projects primarily focused on adaptation Benign finance Finance supporting projects that “do no harm” but at the same time, have no obvious adaptation or mitigation benefits either. Finance supporting projects with a mix of adaptation and mitigation benefits or co-benefits, contributing towards climate resilient low carbon development Finance supporting projects primarily focused on mitigation Mitigation finance E ACTION PLAN (2016–2020) COMPLETION REPORT Climate-compatible finance categories
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