6 July, 2020. The workshop, was financed with a grant from AFDB’s Fund for African Private Sector Assistance (FAPA), and is part of the Bank’s Private Sector Investment Initiative for Nationally Determined Contributions (NDCs), which aims to promote Africa’s private sector participation in climate-related investments as set out under the Paris Agreement.

1. 1

2. 2

3. 3
Presentation Outline
Scaling Climate
Action Through
Climate Technology
and Innovation
Climate Screening
and Opportunity
with GHG
4 33
Guidelines on
Mainstreaming
Climate Change
into Lines of
Credit
Africa Green
Jobs Tracking
Tool
43 61

4. 4
Scaling Climate Action Through Climate Technology
and Innovation by Small- and Medium-sized
Enterprises (SMEs) in African
By
Dr. Eugene Itua
Sustainability and Climate Change Expert

5. 5
5
https://www.afdb.org/en/topics-and-sectors/initiatives-partnerships/africa-ndc-hub
44 (~81%) submitted their
Nationally Determined
Contributions (NDCs) as part
of their commitment to keep
global warming below 2oC.
Introduction

6. 6
• Most African Governments have shown
unmistakable commitment and enthusiasm
in the roll out of their NDCs implementation
&
• Progress being made in advancing their
NDCs implementation

7. 7
“National governments cannot do it alone.
Everyone—including those at all levels of
government, as well as business leaders, investors,
and civil society—must contribute.
United States Council for International Business (USC
Recognition

8. 8
8
Where will these resources come from?
Meeting the Obligations of the NDCs
https://www.afdb.org/en/topics-and-sectors/initiatives-partnerships/africa-ndc-hub
The financing required for
an orderly transition to a
low carbon, resilient global
economy must be counted
in the trillions, not billions

9. 9
Private Sector to the Rescue
9
Projections indicate that about 75% of this
investment will come from the private sector

10. 10
Who is in the Private Sector?
Private sector
Formal large-business sector
• relatively healthy
• productive
Small-business sector
• Massive
• insufficiently understood
• poorly supported,
• Yet supports the majority of workers

11. Involving the SMEs in Climate Action
11
• The strategic and well-informed inclusion of the
private sector, especially the Small- and Medium-size
Enterprises (SMEs) in climate change adaptation and
mitigation planning and activities must be a key part
of efforts to meet the NDC targets.
Their nimbleness makes them instrumental in increasing adaptive
capacity.

12. 12
So by all accounts,
in engaging the private sector for in climate-smart
investments to support the various countries to meet their
NDC targets,
the SMEs must be seen as the cornerstone to grow climate
business opportunities in Africa
Engaging Private Sector in Africa-Recognition

13. 13
Domino Effect of Private Sector
•Opportunity to ensure sustainable development and
boost low carbon economic growth:
•new jobs,
•economic savings,
•competitiveness and market opportunities, and
•improved wellbeing for people with even greater
investment, innovation, and growth potential ahead.

14. 14
• Private ownership,
• Entrepreneurial spirit,
• Flexibility and adaptability
• Potential to react to challenges and changing environments,
• Contribute to sustainable growth and employment generation in a
significant manner.
• Play a significant role in national economy by
• providing various goods and services,
• developing regional economies and communities,
• helping the competition in the market and
• offering innovation.
https://www.ukessays.com/essays/economics/smes-role-in-national-economies-economics-essay.php
Characteristics of the Small- and Medium-size Enterprises (SMEs)

15. 15
• Awareness about the Paris Agreement, climate change, and NDCs
low, which provides a significant barrier to move forward with
concrete action
• Capacity to transform NDC implementation plans into investment-
ready projects is low
• Capacities to develop appropriate financial proposals or requests
for funding assistance from different sources and for the specific
sectors identified in the NDC is low
• Support to create pilot projects that demonstrate new investment
schemes to accelerate adaptation and mitigation actions low.
Current Situation of Private Sector with Regard to NDCs

16. 16
Current Situation of Private Sector with Regard to NDCs

17. Turning the Tide
17
• Addressing the risks and opportunities facing the SMEs
with user friendly toolkits for screening and identifying
climate actions
• SMEs need information and tools to achieve this, and
financing institutions, such as the AfDB and AFAC
members need insights and tools that enhance their
understanding and knowledge of private sector climate
action, and its progress.

18. 18
SCALING CLIMATE ACTION THROUGH CLIMATE TECHNOLOGY AND INNOVATION BY SMEs
Under
Private Sector Investment Initiative for NDCs in Africa
• Support the African private
sector and SMEs to assess
climate risks and
opportunities for NDCs and
green investment.
• Develop climate change screening toolkits for
SMEs to mainstream climate change in key sectors;
• Develop a practical working material to support
SMEs analyse climate change risks/ opportunities
and generate strong adaptation strategies;
• Raise awareness and strengthen the capacity of
SMEs to identify incremental cost due to climate
change and identify climate finance and climate
innovation opportunities;
• Support the AfDB and FAPA members to
mainstream climate risk through lines of credit and
develop toolkits for their staff, especially
Investment Officers.
• Angola
• Egypt
• Morocco
• Mozambique,
• Nigeria
• South Africa
TURNING THE TIDE

19. 19
SCALING CLIMATE ACTION THROUGH CLIMATE TECHNOLOGY AND INNOVATION BY SMEs
Under
Private Sector Investment Initiative for NDCs in Africa

20. The Suite of Tools Under Development
20
Tool Purpose and Users
1. Climate Screening and Climate Opportunity Tool
Sub-tool 1:
Opportunity
assessment tool
 Aligns private sectors, SMEs and business opportunities with key industries/sectors targeted by African countries in
their NDCs/SDGs/other climate actions, the AfDB and AFAC for adaptation and/or for carbon emission reduction
strategies.
 Targeted at businesses, AfDB and other funders
Sub-tool 2: Climate risk
and vulnerability
screening tool
 Identifies climate risks and assess the potential of business ideas/products to overcome/mitigate against the highest
risks.
 Targeted at businesses, the AfDB and other funders
Sub-tool 3: Cost-
benefit analysis tool
 Enables private sector/SMEs to carry out cost/benefit analysis to determine incremental cost and benefit/opportunities
from climate change
 Targeted at businesses, the AfDB and other funders
Sub-tool 4: Finance
analysis tool
 Enables SMEs to identify appropriate sources of funding for their adaptation or emission reduction strategic business
opportunity, and/or their risk mitigation strategy
 Targeted at businesses
2. Guidelines on Mainstreaming Climate Change into Lines of Credit
• Builds on the work of AFAC on climate screening and assessing green investment
• Enable the inculcating of climate change protocols and criteria in AfDB’s lines of credit.
 Targeted at Task Managers
3. Africa Green Jobs Tracking Tool
 Provides a typology of green jobs,
 Allowing AfDB to classify and track green jobs and progress in increasing green jobs and improving green skills, throughout its operations and
funded initiatives
 Targeted at as a continent-wide use tool

21. Usefulness of the Tools
Provide practical and technical solutions to:
• identify risks and risk mitigation strategies for business operations
(from both a climate adaptation and mitigation perspective), with a
view to both de-risking the business and the financier from climate
impacts;
• identify business opportunities that arise from proactive participation
in climate action;
• to strengthen business planning alignment with available funding,
and;
• to enhance in-country capacities and enabling environments to
attract investments from a wide variety of sources.
21

22. Builds on the work of
• African Financial Alliance on Climate Change (AFAC) aims to put
the financial sector actors at the centre of climate action.
• Help members design solutions and mobilise private capital for
climate action through the following objectives:
• knowledge sharing,
• climate risk-mitigating financial instruments,
• climate risk disclosure, and
• climate finance flows.
22
Through this initiative, climate change is addressed both as a risk and an opportunity.

23. 23
But Why New Tools?
• In the market place are numerous tools, frameworks and guidelines exist
• These tools have the potential to be adapted for the SME audience, but
they do not seem to address the needs and circumstances of the African
SMEs:
• Some are designed for donor programming or public finance driven
climate change initiatives;
• Others focus primarily on climate risk screening leaving out climate
business opportunities.
• The complexity of others and resource constraints, exclude the SMEs
from using them

24. • The Climate Risk Management and Adaptation
(CRMA) of AfDB
• reduce vulnerability in Regional Member Countries
(RMCs) by promoting climate resilience in Bank-
financed development investments, as well as build
knowledge and capacity within RMCs to tackle
climate change challenges and promote
sustainability through regulatory and policy reforms
• The Bank’s Climate Change Action Plan (CCAP) falls
under the strategy
• aims to promote low-carbon development and a
climate adaptation strategy that builds adaptive
capacity in RMCs and promotes climate-proofed
investments.
• These two aim to mainstream climate screening and
adaptation measures into Bank projects.
• Meeting the Bank’s strategy, Climate
Safeguards System (CSS) and Additionality
and Development Outcomes Assessment
(ADOA) Framework
• useful tools and guidance for developing
sustainable projects where climate risks are
managed, and climate adaptation
opportunities are maximized.
• CSS focuses on the public sector
• ADOA, though private sector focused,
mainly assesses development, not
climate change.
• Both are used by Bank staff and not private sector/SMEs
themselves which is the focus of these new tools.
24
But Why New Tools?, cont’d

25. • ADOA framework has no
methodology for keeping
close engagement with the
FIs after establishing LOC.
• The new guidelines
• strengthen the financial
additionality drivers in
the ADOA framework
• AfDB has the Green Growth Framework (GGF) to support
African countries in gradually transitioning to green growth.
• Lacks a tracker for identification of green jobs as an
integral part of co-creating bankable climate action and
providing security for private sector/SMEs support is
missing.
• The new Green Jobs Monitoring tool for Climate Action
Projects will support the Bank and African countries to
track green jobs through:
• a proactive and an interactive platform that harmonizes
different green opportunities for youth and women
• a network of green entrepreneurs and the direct and
indirect jobs created because of the supported climate
resilient enterprises and projects
25
But Why New Tools?, cont’d

26. Provide a suite of SME-specific tools:
• that will enable SMEs to make quick decisions concerning their business risks,
and/or the potential of a climate driven business idea or project prior to developing a
detailed business design and strategy.
• Simple enough to use compared to the available complex tools, designed for donor or
public finance driven climate change initiatives, which largely exclude SMEs
because of resource constraints
• address the needs and bridge the existing gap between AfDB CSS and ADOA with
elements that relate to the private sector/SMEs throughout the business process (and
not only at the concept stage), in order to develop businesses/business ideas that are
climate resilient and attractive to climate investors throughout the project life cycle.
26
But Why New Tools?, cont’d

27. 27
27
Developing the Tools & Meeting the Training Needs
Economic
Complexity
Methodology-
• Identifies entry-
points of SME
potential based on
existing capabilities
in an economy
Risk & Vulnerability
Assessment of
SMEs-
• To
overcome/mitigate
against the highest
risks and to assess
business potential
Political
Economy
Analysis-
• Barriers/enablers
to identify
opportunities and
alignment with
NDCs, etc.
Cost-benefit
Analysis-
• Feasibility
check
Co Creation – Innovative Learning Techniques – Adaptive Management

28. 28
Understanding and Using the Tools
•Tools will be tested in the six pilot countries.
•Training will also be provided to:
•enhance skills of SMEs on the tools and
•how to integrate climate change measures in the
design, financial structuring and analysis and
preparation of compelling project proposals in
businesses that facilitate low-carbon and climate
resilient development

29. 29
29
29
This Workshop
• Present the draft climate screening and assessment toolkits
with their guidelines developed in support of the SMEs in
Africa, AfDB and FAPA members to the relevant stakeholders.
• Validate and re-inform the tools and associated training
materials with views obtained from the stakeholders to ensure
more robust toolkits that meet and align the needs of the
SMEs in Africa, AfDB and FAPA members.

30. 30
The Consultative Workshop Charge
• For the African continent, are you
• part of the evolving global climate finance architecture?
• interested in significantly raising the share of climate finance in investments?
• interested in seeing SMEs support Governments achieve climate commitments,
share best practices, prompt positive competition, and improve their confidence that
ambitious climate targets are credible and achievable?
Then support this strategy for risk-rewarding metrics towards low-
carbon and climate-resilient investments

31. Conclusion
“As the continent most vulnerable to climate change, we can only thrive
if we set our economies on a low-carbon and climate-resilient
development trajectory. The smart choice is to rethink how we deploy
capital in a changing environment.”
31
- AFAC Steering Committee Co-Chair Dr. Uzziel Ndagijimana; Minister of Finance
and Economic Planning, The Republic of Rwanda
These tools and guidelines are instrumental in defining the pathways
which direct efforts, activities, projects and financial flows towards
Africa’s NDCs and SDGs and other climate objectives and targets.

32. 32
32
Thank You
Email: afdbsmeproject@ecopital.com www.ecopital.com

33. Toolkits on
Climate Screening and Opportunity
with GHG Accounting
by
Belynda Petrie
Climate Finance and Risk Expert

34. Objectives and Benefits
Specific objectives:
• Deepen the understanding of business of climate change and climate
action from risk, opportunity and implementation perspectives
• Capacitate businesses to integrate climate action into business ideas,
risk management and growth
Benefits for Africa and for SMEs:
• Through enabling climate action in a larger section of national
economies, substantially scale up national climate action across Africa
• Increase SME access to climate finance
• Enable a ‘new’ market for AfDB products and climate investments

35. Overview of the Toolkits and Guidance for SMEs
• The Toolkits Contains a step by step guide in using each of the tools.
• The Toolkit training manual provides a set of guidelines and information intended to equip users
with the knowledge and skills to use the tools developed.
• Aims to help businesses understand how climate change risks affect businesses in general and
the potential opportunities for business growth that exist in the climate change space.
• Ultimate goal: Help to position businesses competitively in current and future markets, and
ensure greater access to sustainable finance and business opportunities
• Augments the AfDB tools by focusing on SME application
Climate change poses serious risks to businesses (productivity losses, cost of regulation and insurance,
damage to/loss of business opportunities). However, SMEs are well-placed to overcome and adapt to these
risks given their agility and flexibility- potential to capture new business opportunities and develop
innovative solutions to climate change challenges.

36. Target Audience
For entrepreneurs at the beginning of the business development phase, these tools will
aid in thinking through potential business ideas in terms of climate change risks and costs,
and in identifying sustainable business opportunities that align with green financing objectives.
For businesses further along the business continuum, these tools will still prove useful in
considering the impact of climate change to the business and the associated costs of taking
action to overcome or adapt to such impacts. It will also help businesses to identify future
opportunities that will help to reduce the impacts of climate change or assist in coping with
these impacts.
For the AfDB, these tools will assist in vetting SME green finance applications and aligning
these with AfDB climate change objectives

37. Climate Risk Screening and Opportunity Assessment Toolkit
Specifically, the purpose of these tools is to:
• Enable businesses to identify and develop sustainable business ideas and initiatives that align with national
climate change strategies and objectives, climate financing criteria and country sustainable development
objectives, to increase their probability of receiving climate financing;
• Climate proof their businesses as appropriate in terms of climate risks for long-term sustainability and
growth and;
• To integrate climate response strategies into business operations and to account for achievements made
each year of the business lifecycle, thus enhancing the preparation of bankable businesses in the green
space and increasing access to climate finance.
This toolkit will start with a landing page that will explain the purpose of these tools and the steps to take as
outlined below.
Step a: Screen for
current and future
risks
Step b: Screen the
business idea for
climate finance
opportunities
Step c: Assess the
alignment of the
SME with priority CC
sectors and goals
STOP/GO POINT:
Determine if worth
conducting a more
detailed risk or
opportunity
assessment
Step d: Identify risk
reduction
strategies/emission
reduction strategy
Step e: Identify
strategies for
operationalising the
identified business
opportunity
STOP/GO POINT:
Determine if the
climate adaptation
or emission
reduction risk
strategy or the
opportunity strategy
is worth pursuing
Step f: Calculate the
incremental costs and
benefits of the
identified climate
action(s) and identify
appropriate funding
sources
STOP/GO POINT:
Determine if the
risk/opportunity/emi
ssion reduction
strategy actions(s)
should be
implemented and
financed
Step g: Apply the
Finance
Opportunity
Checklist
Apply the GHG
Accounting Tool
(Part B)

38. GHG Accounting Toolkit
Specifically, the purpose of this tools is to:
• Estimate the GHG reduction potential of the business
• Determine how their business will reduce GHG emissions or increase carbon uptake
• Calculate the estimated GHG reductions or carbon uptake of the business
• Identify and apply the most appropriate methodology for measuring reduction units in
tonnes of CO2 equivalent, and in units of time in years
• Perform business and economic analysis and modeling in relation to mitigation
planning and projects
• Perform ongoing technical analysis to refine their mitigation strategies
through information and recommendations provided
Step a: Consolidate the baseline Step b: Emissions calculations Step c: Reporting

39. Associated Training
Specifically, the purpose of the training is to:
• Train users (SMEs and AfDB staff) on toolkit objectives and application
• Determine when and how to use the tools
• Increase access to climate finance
Training will be conducted in the six project pilot countries:
• Angola
• Egypt
• Morocco
• Mozambique
• Nigeria
• South Africa

40. Six Training Modules
1. Climate risk screening – what are the climate risks for business? (2 hours
online)
2. Climate action – what are the opportunities for businesses and entrepreneurs?
(2 hours online)
3. Climate change mitigation – how are greenhouse gas emissions relevant to
business? (2 hours online)
4. Greenhouse Gas Accounting – what methods are available for businesses to
apply? (2 hours online)
5. Accessing climate finance – opportunities and pitfalls for small business?
(2 hours online)
6. Climate Change Tools Application – why, when and how to use the tools?
(2 hours online)

41. Participants’
Thoughts on the Toolkits on Climate Screening and Opportunity with
GHG Accounting

42. 42
42
Thank You
Email: afdbsmeproject@ecopital.com www.ecopital.com

43. Guidelines on Mainstreaming Climate
Change into Lines of Credit
Presentation By:
Dr. Jubril Adeojo

44. Outline
The Rationale
AfDB’s Climate Finance Milestones and Commitments
The Objectives
Theory of Change of the mainstreaming guidelines
The 3 Pillars of the mainstreaming guidelines

45. Rationale for the Mainstreaming Guidelines
Additionality and Development
Outcomes Assessment
Framework
(ADOA)
• Financial additionality drivers
are centered on vanilla LOC
creation
• No alignment with climate
actions and goals for Africa
• No strategy on post-LOC
scalability
• Climate outputs are not
included in the result based
reporting framework (i.e.
volume of GHG emission
reductions)
Green Growth Framework
(GGF)
• No strategic demonstration of
climate finance and climate
action integrated into the LoC
• The green growth
initiatives/programmes of the
Bank and in conjunction with
FIs are not strongly aligned
with specific and measureable
climate goals (NDC targets)
• Very macro overview of
importance of climate finance
& blended financing
mechanism.
African Financial Alliance on
Climate Change Principles
(AFAC)
Climate Change Action Plan
(CCAP)
• Very high-level overview of the
climate change risk and climate
actions on Africa
• Demonstration of AfDB’s
commitment to climate risks,
actions and finance in
investment and strategic
decisions
• Limited granularity in the
application and mainstreaming
guidelines into the investment
and strategic decisions
Gap Analysis of Existing Related AfDB Tools

46. AfDB’s Climate Finance Milestones & Commitments
• Under the CCAP, the Bank has committed to
allocate 40% of approvals per year — as climate
finance by 2020, cumulatively investing about
USD 16.8 billion by 2022.
• In 2015, $500m Green Bond was issued
• Setup, co-implementing and leveraging a number
of climate action related structured impact funds
for Africa

47. Objectives of Mainstreaming Guidelines
Leverage green LOC to mobilize private sector funds globally is in
response to the dire sufferings of the ecosystems from the effects of
climate change (adapting) as well as mitigating.
1
To strengthen the Bank’s green bond programme so that the green
bond proceeds can be applied to establish/float green LOCs approved
for different eligible FIs across Africa.
2
To prepare and support African countries via private sector engagement
towards the implementation of the NDCs leveraging financial and non-
financial resources/instruments.
3

48. Aligning closely and strategically with specific NDC targets (climate
actions) across various economic sectors of African countries where the
participating financial institutions (FIs) operate in and intends to utilize
the LOC proceeds.
4
Build the capacities of financial institutions and SMEs to accelerate the
adoption of climate action and finance across Africa.
5
Harmonization of all existing related tools and frameworks of the Bank
focused on climate actions, and development impacts – SDGs.
6
Objectives of the Mainstreaming Guidelines (Cont’d)

49. Theory of Change of the mainstreaming guidelines
High 5 Priorities:
Feed, Industrialize, Integrate, Light Up & Power, and Improving the lives of people in,
Africa
National Development Plan Framework
SME
Sectors Industries
Sustainable
Power/Energy
Agriculture
Value Chain Transportation
Information,
Communicati
on &
Technology
(ICT)
Nationally Determined Contributions (NDCs) = Greenhouse Gas Emission Reduction
Targets; Mitigation and Adaptation Actions across various sectors
Economy Decarbonization Pathway
SUSTAINABLE DEVELOPMENT GOALS
LINE OF CREDIT
Mainstreaming
additions

50. 3 Pillars of the mainstreaming guidelines
PILLAR 1
• Guidelines for the
LOC Climate Action
Taxonomy
PILLAR 2
• Climate Risk
Management
Procedures for the
LOC
PILLAR 3
• Technical Assistance
for Capacity
Development for
Financial Institutions
and SMEs

51. PILLAR 1: Guidelines for the LOC Climate Action Taxonomy
Climate Change
Global Warming
Causes:
Greenhouse Gases (GHG) emissions
from Carbon dioxide; Methane, …
Effects:
Heat waves, rising sea levels,
floods, drought
Climate Mitigation Actions Climate Adaptation Actions
RENEWABLE ENERGY
GENERATION
ENERGY EFFICIENCY
CLIMATE SMART
AGRICULTURE
LOW CARBON MOBILITY
WASTE & WASTE WATER
CLIMATE SMART
AGRICULTURE
WASTE & WASTE WATER
CLIMATE SMART ICT
(DISASTER RISK MGT.)
CLIMATE SMART INDUSTRIES,
MANFACTURING,
INFRASTRUCTURES
SME Sectors Industries Power/Energy
Agriculture Value
Chain
Transportation
Information,
Communication &
Technology (ICT)
CLIMATE / GREEN FINANCE
Green/Climate
Innovators/Entre
preneurs
Market

52. PILLAR 1: Vanilla LOC framework Vs. Green LOC framework
African Development Bank
Line of Credit Proceeds
Financial Institutions
Sectors: Industries & SMEs
African Development Bank
Green Line of Credit Proceeds
Financial Institutions
Sectors: Industries & SMEs
Climate Actions: Mitigation & Adaptation

53. Climate Mitigation Action Taxonomy
RENEWABLE ENERGY GENERATION CLIMATE SMART AGRICULTURE
• Renewable Energy Technologies for electricity self-generation and consumption for any
of value chain activities: Solar, Hydro, Biomass, Wind, Gas Reduction in fertilizer use, rangeland management, collection and use of
bagasse, rice husks, or other agricultural waste
ENERGY EFFICIENCY
Rehabilitation of degraded lands – green house farming practice; Reduction in
energy use in traction (e.g., efficient tillage), renewable energy powered
irrigation, and other agricultural processes
• Industrial energy-efficiency improvements through the installation of more efficient
equipment, changes in processes.
• Energy-efficiency improvements in lighting, appliances and equipment
• Clean energy powered cold chain - transport, storage, packing, processing
• Use of highly efficient architectural designs or building techniques that enable reduced
energy consumption for heating and air conditioning, exceeding available standards and
complying with high energy efficiency certification or rating schemes. This category
excludes efficiency improvements to dirty fossil fuel-fired power plants. • Livestock projects that reduce GHG emissions (e.g., manure management
with bio-digesters producing biogas for heating or cooking)
LOW CARBON MOBILITY WASTE AND WASTE WATER
Urban transport modal change: Non-motorized transport (bicycles and pedestrian mobility);
Urban mass transit
Waste management that reduces methane emissions (e.g., shifting from open
dumps and lagoons to municipal / industrial waste (water) treatment, including
switching to composting, waste incineration, landfill gas capture and
flaring/power production, etc.)
• Waterways transport resulting in a modal shift for freight and/or passengers
• Vehicle energy-efficiency fleet retrofit (including the use of lower-carbon fuels, electric or
hydrogen technologies, etc.).
Waste recycling measures with a demonstrated net mitigation benefit
Sources:
Climate
Bonds
Initiative

54. Climate Adaptation Action Taxonomy
WASTE AND WASTE WATER MANAGEMENT
CLIMATE SMART MANUFACTURING, TRADE,
INFRASTRUCTURES
Installation of domestic rainwater harvesting equipment and water storage where water
supply is negatively affected by climate change
Manufacturing (e.g., design of climate-resilient equipment);
Rehabilitation of water distribution networks and building pipelines to improve water
resources management, to address changes in water flows/quality caused by climate
change, etc.;
Increased cooling requirement in food processing
distribution & retail resulting from more extreme heat events
(e.g., increased water-efficiency in processing)
Changes in design of sanitation and storm-water management systems in response to
extreme weather events arising from climate change.
Adaptation components in projects to improve the climate
resilience of existing infrastructure e.g., transport
infrastructure, energy infrastructure, riverine infrastructure
(including built flood protection) and human settlements
(e.g., housing)
CLIMATE SMART ICT - (OTHER) DISASTER RISK MANAGEMENT CLIMATE SMART AGRICULTURE
Early warning / emergency response systems to adapt to increased occurrence of extreme
events by improving disaster prevention, preparedness and management and reducing
potentially related loss and damage;
Provision of information on crop diversification options to
farmers
Monitoring of disease outbreaks and development of a national response plan (to adapt to
changing patterns of diseases that are caused by changing climatic conditions).
Adoption of sustainable aquaculture techniques to address
changes in fish stocks resulting from climate change
impacts and supplement local fish supplies, etc.
Sources:
Climate Policy Initiative
Climate Bonds Initiative

55. Test Case: Applying Climate Actions across Agriculture Value Chain
Renewable Energy Technologies for electricity self-generation
Industrial energy-efficiency improvements through the installation of more
efficient equipment, changes in processes.
Energy-efficiency improvements in lighting, appliances and equipment
Clean energy powered cold chain – energy-efficient transport, storage, packing, processing
Livestock projects that reduce GHG
emissions (e.g., manure
management with bio-digesters
producing biogas for heating
Provision of information on crop
diversification options to farmers
Reduction in fertilizer use, rangeland
management,
Green – Climate Mitigation Action
Orange – Climate Adaptation Action

56. PILLAR 2: Climate Risk Management Procedures for the LOC
Sample Sectors Climate Risks & Potential Exposure
Urban planning and
infrastructure sector
More frequent heat waves may increase the stress on emergency services and hospitals while
more intense storms and rising sea levels may increase the vulnerability of coastal housing and
infrastructure.
Electricity sector
An increase in heat waves and longevity of temperatures daily would further stimulate air-
conditioning demand.
Increased peak demands on generation and distribution systems will challenge system reliability.
Since investment needs are strongly driven by peak demand rather than by average levels of
consumption, per unit cost of electricity can be expected to increase in response to the increased
peak demand. The required capital to accommodate such peak demand will also increase.
Agriculture sector
Increases in temperature and net reductions in average rainfall across Africa could make drought
sequences more common, while the impact of increased temperatures would make them more
damaging to plant and livestock viability and production.
To the extent that these increases in drought frequency or severity result from continental impacts,
then drought management based on shipping livestock and fodder between areas of localized
drought may not be possible.
Success Criteria Shareholder value Growth Supply Chain Human Resources Compliance
Rating Catastophic Major Moderate Minor Insignificant

57. PILLAR 3: Technical Assistance for Capacity Development for Financial Institutions and De-risking SMEs
Stages in green
financing
Technical assistance to
FIs
Technical assistance to end
borrowers/SMEs
Bottlenecks to address
Project Identification &
Origination
Market studies, portfolio
assessment
Energy audits, providing information on
financing options
Low awareness of green investment
opportunities; lack of bankable green
projects
Appraisal and Profiling
Technical audits, financial
assessments
Support in drafting bankable business
plans and loan applications as well as
blended financing options
Lack of capacity to evaluate green
investment proposals; lack of clear risk
profile for green projects
Market-led Product
Development
Support in
design/development,
testing, and deployment of
new financial products,
capacity building
Hand-holding end borrowers during
project implementation and early stage
management
Unsuitable financial products or
lending practices; lack of market
knowledge and information
Monitoring, evaluation,
and aggregating
Development of monitoring
and evaluation tools,
environmental and social
risk management
Support in the assessment of the
project
Lack of capacity to monitor and
evaluating ongoing projects; lack of
projects aggregation mechanism
Marketing and
communication
Assistance in developing
marketing campaigns
Aggregation of bankable projects of the
end borrowers
Low awareness of green investment
opportunities and benefits
Technical Assistance Along the Lifecycle of the Financing Process

58. • Detailed Climate Action & Finance Taxonomy alignment with
the NDC sectoral targets (2 hours online)
• Climate financial instruments such as grants, concessional
loans, bonds, equity, blended finance (2 hours online)
• Role of Development Finance Institutions and Commercial
Banks in Climate Finance (2 hours online)
• Exploring different innovative and practicable blended
financing scenarios
• Case Studies on Originating and Financing Bankable Green
Businesses and Climate Actions (mitigation & adaptation) (2
hours online)
• Exploring policy formulation strategies for the Bank on climate
action and finance (2 hours online)
Training Modules & Target Audience
AfDB Staff: PECG, Private Sector
Operations, Investment Officers,
Non-Sovereign Operations
Financial Institutions:
commercial banks, development
banks, microfinance banks across
the Pilot 6 African countries

59. • How can the guidelines be integrated into project life cycle of the Bank’s
operations?
• What are the potential challenges and opportunities in applying the
guidelines?
• Are there other staff and departments within the Bank operations that
would benefits from the training on how to use the tool?
• Is the tool in strong alignment with the Bank’s climate action agenda?
Questions for the Participants

60. Participants’ thoughts on the
Mainstreaming Climate Change into Lines of Credit
Guidelines

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natural eco---driving for more sustainable resilient economy!
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Email: afdbsmeproject@ecopital.com www.ecopital.com

62. Africa Green Jobs Tracking Tool
Presentation By:
Dr. Jubril Adeojo

63. Outline
Rationale
Objectives
Defining Green Jobs
Indicators for tracking Green Jobs
Tracking Methodology

64. Rationale for the Green Jobs Tracking Tool
Additionality and
Development Outcomes
Assessment Framework
(ADOA)
• Green Jobs creation output
is not included in the
development outcome
reporting template on LOC-
financed projects
Green Growth Framework
(GGF)
• No clear definition of green
jobs, and no strong linkage
with the defined green
economy indicators
• Very macro overview and
framework of green growth
and climate action indicators
in African economies
Jobs for Youth in Africa
Tracking Tool
• No strong alignment with
SDGs and green economy
indicators
• Specific to youths, which is
limited in scope
Gap Analysis of Existing Related AfDB Tools

65. Objectives of the Tracking Tool
To make existing
related tools more
inclusive from a
green economy
perspective
To further press on
co-creation of
sustainable and
green jobs in
process of Africa
industrialization and
Integration Agenda.
To institutionalize
green jobs creation
into the project cycle
of the Bank

66. Defining Green Jobs
• Green jobs are defined as jobs that contribute to reduction of the environmental
impact of enterprises and economic sectors, ultimately to levels that are
sustainable.
• This definition covers work in agriculture, industry, services, transportation, real estate,
energy access, and administration that contributes to preserving or restoring the
quality of the environment.
• Green jobs must also meet the criteria for decent work – adequate wages, safe
conditions, workers’ rights, social dialogue and social protection.

67. Drivers for Creating Green Jobs
Changes in
the natural or
built
environments
Technology
and
innovation =
climate action
Markets for
green
industries and
new
consumer
habits
Government
Policies and
Regulations

68. Indicators for tracking Green Jobs
Economic Indicators Environmental Indicators Social Indicators
Economic Resilience
Coping with climate variability impacts
e.g. flooding, windstorms, and drought
Inclusion of marginal groups
Absorbing a growing workforce into
the national labour market
Sanitation, waste management in
urban areas, forest logging
Poverty reduction
Productivity - energy efficiency &
conservation across sectors
GHG emissions reduction
Just transition for workers and
enterprises; sustainable job creation
Rural economic development
(forestry, agriculture)
Sustainable resource management,
GHG capture capacity, biodiversity,
land use management, food
production
Employment, income, decent work,
Productivity - resource efficiency
across sectors
Waste management and recycling,
pollution control
Decent work, livelihood diversification
Creating new markets (domestic and
international)
Organic farming, sustainable logging,
energy-efficient manufacturing,
ecotourism
Employment, income, decent work,
Increasing Productivity
Air quality improvement e.g. vehicular
industrial, and energy source
emissions reduction
Public health, quality of work, work
decency

69. Tracking Methodology
Direct Employment
Status Direct environment-related jobs, especially if the green
activity cuts across a number of different sectors.
Input - Output
Able to estimate economy-wide results including
indirect and induced impacts and their interaction with
the environment.
Multipliers - Direct,
indirect and induced
impacts
The induced multiplier effect is a multiple of 5.7x of the
direct green jobs/employment status to generate and
track the indirect green jobs created along the input
and output supply chain of the financed/implemented
climate action within a particular sector.

70. • Practical Alignment with existing related
tools and framework of the Bank (2 hours
online)
• Drivers for co-creating green jobs (2 hours
online)
• Scoping of key green jobs indicators in
real-life cases (2 hours online)
• Limitations of the tracking methodology
and approaches (2 hours online)
• Practical Alignment of Green Economy
Indicators with the SDGs (2 hours online)
• Tool Testing on some approved/financed
projects of the Bank (2 hours online)
AfDB Staff: PECG, Private Sector,
Investment Officers, Non-Sovereign
Operations, Sovereign Operations
Private Sector: Financial Institutions,
Large Corporates, SMEs, NGOs across
the Pilot 6 African countries
Public Sector: Government Ministries,
Agencies and Departments across the
Pilot 6 African countries
Training Modules & Target Audience

71. • How can the tracking tool be integrated into project life cycle of
the Bank’s operations?
• Should the tool be institutionalized into all the operations of the
Bank?
• What are the potential challenges and opportunities in applying
the tracking tool on all projects of the Bank?
Questions for the Participants

72. Participants’ Thoughts on the
Africa Green Jobs Tracking Tool

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natural eco---driving for more sustainable resilient economy!
Thank You
Email: afdbsmeproject@ecopital.com www.ecopital.com