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Climate Finance For Low Emissions Agriculture In Sub-Saharan Africa

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26 Feb, 2024

This post was originally published on Climate Links

Climate Finance For Low Emissions Agriculture In Sub-Saharan Africa
jschoshinski
Fri, 02/09/2024 – 21:00

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The USAID Africa Trade and Investment Activity partnered with Open Capital (OCA) and the Climate Policy Initiative (CPI) to inform the design of catalytic interventions to scale climate financing for low-emissions agriculture in Sub-Saharan Africa (SSA). This work included a thorough landscape analysis of climate financing flows specifically targeting agriculture in SSA. This analysis evaluated the effectiveness of climate mitigation and adaptation financing and the funding partners involved, as well as the primary barriers to increasing climate financing on the continent. 

The Climate Finance Innovation for Agriculture Report builds on insights from extensive consultations with a broad range of key ecosystem stakeholders and comprehensive desktop research, this report identifies intervention opportunities to address barriers to climate finance flows, including financing, governance, skills and knowledge, and agribusiness barriers.

The Climate Finance Toolbox provides a set of foundational resources to support USAID Country Missions in accelerating the flow of climate finance in their respective countries in SSA.

Introduction to the Landscape of Climate Finance for Agriculture

Introduction to the Climate Finance Landscape: This document summarizes the context of climate finance for sub-Saharan Africa, including various instruments, approaches, challenges, opportunities, outcomes, and support requirements to inform potential interventions for future agriculture programs and projects with a climate finance focus.

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How-to Guide 1: Building a Climate Finance Roadmap

Developing Climate Finance Roadmaps: This document offers a set of guidelines for USAID country Missions developing customized climate finance roadmaps for the agriculture sector to accelerate the flow of climate finance within their respective countries or regions. This guide includes a step-by-step process for identifying barriers to climate finance flows, developing corresponding interventions, managing stakeholder engagement approaches, and incorporating milestones, timelines, and responsibilities to ultimately scale climate finance flows.

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How-to Guide 2: Supporting Development of Climate Finance Projects in Agriculture

Supporting the Development of Climate Finance Projects in Agriculture: This document provides guidance to USAID country Missions seeking to assist diverse stakeholders in developing climate-positive agriculture projects. Such projects involve avoiding or removing greenhouse gases from the atmosphere, preserving biodiversity, sustainably managing of natural resources, and improving the livelihoods of the local communities engaged in climate-related interventions.

 

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How-to Guide 3: Carbon Markets for Agriculture 101

Carbon Markets for Agriculture 101: This document serves as a foundational resource for understanding, assessing, and enabling the growth of carbon markets in agriculture within Sub-Saharan Africa (SSA). This document summarizes key opportunities, challenges, and considerations for Missions to consider when developing carbon projects in SSA.

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How-to Guide 4: Working with Local Financial Institutions to Integrate Climate Lending

Working with Local Financial Institutions: This document offers guidance to USAID country Missions on crucial considerations when assisting local financial institutions in improving climate-specific lending in agriculture. Key areas covered include the development of effective risk assessment and mitigation techniques, as well as innovative financial instruments and structures that can encourage lending for climate-positive projects.

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Digital Tools and Resources for Climate Finance for Agriculture

Digital tools for climate finance for agriculture in SSA: This document provides a list of digital resources and platforms that support efforts to accelerate climate finance flows in the agriculture sector in Sub-Saharan Africa. The resources include interactive tools for assessing the impact of climate financing, training resources for enhancing climate-related and financial knowledge, and a directory of key networks for potential collaboration and information exchange.

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Embedding environmental stewardship into IT governance frameworks

Embedding environmental stewardship into IT governance frameworks

Integrating environmental stewardship into IT governance frameworks has become essential as businesses increasingly prioritise sustainability. IT operations contribute significantly to carbon emissions, energy consumption and electronic waste (e-waste). Organisations that embed environmental responsibility into their IT governance can reduce their ecological footprint, improve operational efficiency and strengthen their brand reputation.

Erica Smith, chief alliance officer and environmental, social and governance lead, Blue Connections IT, said, “Environmental stewardship supports financial performance, risk mitigation and brand differentiation. With rising energy costs, increased consumer demand for sustainable products and services, and growing pressure from investors and regulators, companies can no longer afford to overlook their environmental responsibilities.

“Poor sustainability practices in IT can lead to high operational costs, supply chain risks and reputational damage. Conversely, a proactive approach improves efficiency, attracts environmentally conscious customers and helps future-proof businesses against evolving policy and regulatory changes.

“Integrating environmental responsibility into IT governance integrates sustainability initiatives into decision-making systematically. Organisations can reduce waste, lower energy consumption and extend the lifecycle of technology assets while positioning themselves as responsible leaders in an increasingly climate-aware market.”

There are four key areas that present opportunities to embed environmental stewardship into IT governance frameworks.

1. Device lifecycle management

A structured approach to managing the lifecycle of IT assets ensures devices are deployed efficiently, maintained properly and retired responsibly at the end of their useful life. Embracing a circular economy model, where equipment is refurbished, reused or ethically recycled, can significantly reduce e-waste and resource use. Companies that adopt this approach lower their environmental impact and unlock financial value by extending the lifecycle of IT assets.

Smith said, “Effective asset recovery strategies further support sustainability efforts. Integrating secure data erasure and refurbishment into IT governance policies lets businesses repurpose functional devices within the organisation or resell them to external buyers. Responsible e-waste recycling also supports companies to process materials ethically in instances where resale is not viable, reducing landfill contributions and preventing environmental contamination. The adoption of industry-certified data sanitisation methods also safeguards compliance with security and privacy regulations.”

2. Sustainable procurement

IT governance frameworks should prioritise the selection of technology vendors and partners committed to sustainable manufacturing, responsible sourcing and energy-efficient product design. This includes favouring IT hardware with a high percentage of post-consumer recycled materials and using minimal packaging. Additionally, employing Device-as-a-Service (DaaS) models optimises IT asset utilisation while reducing upfront investment and unnecessary hardware purchases.

Partnerships with sustainability-driven IT service providers can further enhance an organisation’s environmental impact. Working with partners that offer end-to-end IT asset management solutions, encompassing secure device deployment, certified data sanitisation and ethical recycling, simplifies the process of aligning IT operations with sustainability goals. Companies that prioritise environmental stewardship in their IT governance framework gain a competitive advantage by demonstrating their commitment to responsible business practices.

3. Energy consumption

Data centres, cloud services and enterprise networks require substantial energy resources, making green IT practices essential. IT governance frameworks should include policies to reduce consumption by optimising server efficiency, reducing redundant infrastructure and using renewable energy sources. Cloud providers with strong sustainability credentials can support carbon reduction initiatives, while virtualisation strategies can consolidate workloads and improve overall energy efficiency.

4. Employee engagement

Educating staff on sustainable IT practices, such as energy-efficient device usage and responsible e-waste disposal, creates a culture of accountability. Organisations that implement green workplace initiatives, such as responsible end-of-life disposal programs, reinforce their commitment to sustainability at all levels.

“IT governance must also align with corporate environmental, social and governance commitments. Companies can contribute to broader sustainability objectives by embedding environmental stewardship into IT policies, such as net-zero emissions targets and responsible supply chain management. Clear reporting mechanisms and regular sustainability audits aid transparency, letting businesses track their progress and demonstrate accountability to stakeholders,” Smith said.

Government regulations and evolving industry standards are increasingly shaping the sustainability expectations for organisations. Aligning IT governance frameworks with best practices for environmental stewardship keeps companies ahead of regulatory requirements. Proactive adoption of sustainable IT practices positions businesses as industry leaders in environmental responsibility.

Smith said, “Integrating environmental stewardship into IT governance frameworks is not just about meeting compliance obligations; it’s about futureproofing company operations and prioritising the broader environment. Taking a proactive approach to sustainability lets organisations drive efficiency, reduce long-term costs and contribute to a healthier planet. Businesses that lead in sustainable IT governance will be well-positioned for long-term success as environmental concerns continue to shape consumer and corporate priorities.”

Image credit: iStock.com/Petmal

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