Climate Finance Expert Discusses Economic Commitments and Solutions to Climate Change

 Now, a new report released this week by the United Nations Intergovernment Panel on Climate Change, looking at the causes, impacts and solutions to climate change has revealed that unless economic commitments are made, the window is closing fast. From on, this week joined by Verenika Jackratzi, the head of climate finance at AECF. Verenika, thank you for making the time and thank you for joining us. It seems to be the situation is worse than Ali thought. How do we get out of this dark hole if we still stand at chance? Wow, there he is indeed an emphasis that if we continue with the business as usual and the current trends that we are operating in, we are getting into beyond 1.5 and probably above two degrees, which is a challenge. So the hope is with the commitments from the government in terms of their nationality determined contributions and the hope will also come largely from the private sector. We know that the demand for transitioning from the coal, transitioning from our traditional energy sources that are polluting will need subsequent and large financing, which probably the public sector cannot do it alone because of other competing needs such as taking its populations out of poverty, feeding health issues. So then developing a good infrastructure that is more climate resilient, that is more climate smart will require also the hands of the public sector to come on board. The private sector to come on board. Being very optimistic Verenika, I don't want to pass your bubble, but history has shown us that depending on the private sector is not the best means of solving such a situation. That's why we are getting to the one point of five, because it's largely capitalistic in nature. So could implementing things like implications that were discussed at COP26 be a step forward? The private sector will need public sector. So the blended financing structures will be also important and we need to understand that for example, in African-Pontinent, 95% of the businesses are small enterprises and we are saying ways the enabling financing to support the most needed transitioning and the innovative financing within the climate space. So those are some of the solutions that we will be looking at as well as structuring even funds under asset management and impact development. So I think we are seeing a significant demand for impact investing and it's one area that we can possibly explore and we are there not to leave anyone behind. So it means there is also need for considering the small and growing enterprises in the space as well. Was the public sector definitely needs to provide the most needed, de-resking facilities? Verenika, we love you with a few minutes, but I want us to touch two points that are really caught my attention when I was going through these reports and that one of them is technology is not a silver bullet. The report is noting that the use of some technologies designed to limit warming or reduce carbon will make matters worse rather than better. Isn't this, doesn't this feel like five steps forward and seven back? That's why the importance of precautionary principles is very important. We have technologies that have worked that have been tried and tested and they have potential for a pick up bulletin scaling up. So those are the technologies that we need to start scaling up and then in terms of new technologies we can't avoid not to go the technology card route in terms of solving some of these challenges and the question is what precautionary principle are we going to be applying even as we implement or scale up some of these technologies that have been recommended. We have geoengineering technologies, carbon capture technologies coming in and they have their own challenges, they have their own limitations, but then now the pros, what are the pros and cons of these technologies. So the need to be precautionary and the need to try and also scale the already tried and tested technologies is very fundamental in that front. Verenika, I left with a bottle of minutes, so I want you to give us your take in regards to what could potentially be the solution. We need all the hands on the deck. So the private sector, the public sector, our small and medium enterprises need to be on the deck. We need to scale up financing for adaptation. We see that it has been lagging behind in the history and we have done a failure in the mitigation space, but they still more room to do that. And the catalytic and gap funding for the SMEs and the private sector is equally important and of course, the risk is an important thing that we need to really do, especially in the climate change technology space and the subsequent proposed approaches and innovations within the climate-finding space.

A new report released this week by the UN's Intergovernmental Panel on Climate Change looking at the causes, impacts and solutions to climate change has revealed that unless economic commitments are met, the window is closing fast. Veronica Jakarasi, Head of Climate Finance at AECF joins CNBC Africa for more. 

Economics of climate change, a look at the reality

A new report released this week by the UN's Intergovernmental Panel on Climate Change looking at the causes, impacts and solutions to climate change has revealed that unless economic commitments are met, the window is closing fast.

Economics of climate change, a look at the reality

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Economics of climate change, a look at the reality

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