In the recent Africa Climate Business Forum, corporate leaders were urged to assume a prominent role in climate financing.
Mary Peschka, the Regional Director for East Africa at the International Finance Corporation (IFC), emphasized the significance of private sector contributions in addressing climate change, stating, “Estimates indicate that approximately three-quarters of climate investments must originate from the private sector to complement public sector funding, underscoring its central role.”
The forum’s primary objective was to formulate a comprehensive strategy for tackling climate change and advancing sustainability across diverse sectors of the economy, attracting over 300 business and government dignitaries.
Speakers underscored the pivotal role of climate financing in our society. James Mworia, CEO of Centum Investments, stressed, “Strategic green energy investments in real estate development can offer competitive advantages in the market, reduce energy production costs, and function as a risk management tool within the entire development ecosystem.” Climate financing also holds a vital role in industrialization and in generating employment opportunities, especially for the youth.
The International Monetary Fund (IMF) has indicated the need for KES 28.5 trillion annually by 2030 for mitigation and Kshs 7.5 trillion by 2050 for adaptation. Currently, there exists a substantial gap in climate financing that necessitates corporate intervention to support green initiatives. Furthermore, corporations were encouraged to engage in initiatives that reduce carbon emissions.
Dr. Kamau Thugge, the Governor of the Central Bank of Kenya (CBK), disclosed CBK’s commitment to fostering a green economy. He revealed that CBK is in the process of establishing a framework to identify environmentally-friendly activities, investments, and projects.
This framework will align with international sustainability standards, fostering transparency in green finance and attracting local, regional, and international investors interested in green projects.
Enhanced green financing will not only promote a sustainable environment but also generate much-needed employment opportunities.
