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Mobilizing Climate Finance to Strengthen Trade and Investment on the African Continent

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12 Oct, 2024

This post was originally published on Climate Links

Mobilizing Climate Finance to Strengthen Trade and Investment on the African Continent
jschoshinski
Thu, 10/10/2024 – 14:51

2023 marked the hottest year on record and 2024 is shaping up to be no different. With regions like the Sahel and West Africa experiencing unprecedented heatwaves, temperatures in many African countries have reached close to 40℃ (104°F) over the past six months. While these conditions underscore the urgency of addressing climate change, they also highlight a unique opportunity for growth and resilience. 

The introduction of climate finance—targeted investments aimed at mitigating and adapting to climate change—can be a game changer for African countries seeking to tackle the climate crisis. By channeling funds into sustainable initiatives, governments and citizens alike can not only address climate-related issues but also build resilient communities, create sustainable livelihoods, and generate profit for African businesses.

USAID and Prosper Africa, a presidential level national security initiative to increase two-way trade and investment between the United States and African countries recognize the potential of climate finance. That’s why they offer custom climate change solutions to help African governments, businesses, and smallholder farmers transition to sustainable, productive, and profitable approaches amidst a complex trade and investment landscape. 

For example, Prosper Africa and USAID’s catalytic capital efforts remain a steadfast way to propel climate-focused initiatives forward through fund partners. This includes Smallholder Agroforestry Finance, which will leverage ($110 million, with $3.2 million in catalytic capital from USAID, for its carbon finance facility, and ThirdWay Partners, which leverages $70 million for the Africa Conservation and Communities Tourism Fund. In total, Prosper Africa and USAID expect to raise at least $700 million for climate finance solutions.

In addition to raising funds for climate innovation, the Prosper Africa-USAID partnership seeks to identify new opportunities for private-sector partners to play a landmark role in green initiatives. Liberia and Sierra Leone are home to  the Gola National Forest, one of the largest and most biologically diverse rainforests in West Africa. USAID, through its Africa Trade and Investment Activity, plans to conduct feasibility studies that map out climate financing opportunities in support of Gola National Park—with the goal of boosting private sector investment for essential cross-border conservation efforts. USAID also published Climate Finance for Low-Emission Agriculture in Sub-Saharan Africa and developed a corresponding toolbox that provides guidance and recommendations around how the Agency’s agriculture, food security, and resilience programs can better promote the flow of sustainable and inclusive climate finance in sub-Saharan Africa. 

Still, for many climate-focused projects on the continent, access to reliable electricity remains a key constraint that not only inhibits the initiatives themselves, but also affects the social and economic growth of more than 580 million people. To meet the needs of a population currently lacking access to energy while capitalizing on an enormous opportunity for private sector investment and innovation in the electricity sector, Prosper Africa and USAID are helping boost exports of U.S. clean technologies to Africa through the U.S.-Africa Clean Tech Energy Network (CTEN). Connecting U.S. and African cleantech energy companies to increase trade and investment in green technologies, this cross-border network—led by a partnership between Prosper Africa, the Power Africa initiative, and USAID—has provided technical assistance to over 100 firms. As the network continues to expand, opening new market opportunities for U.S. and African businesses while improving access to reliable electricity, CTEN will facilitate an increase in U.S. clean energy exports to Africa and close at least $350 million worth of cleantech energy deals by 2026.

Through these and other interventions, Prosper Africa and USAID are demonstrating climate finance’s potential to serve as a resilient solution to countering even the most drastic effects of climate change. In addition, both partners are continuing to leverage mechanisms, including the USAID Africa Trade and Investment Activity, to develop and mobilize climate-resilient projects, capitalize on funding opportunities, and contribute to the transition towards a low-carbon economy. Climate finance holds immense potential to mitigate the risks posed by climate change and create new opportunities for trade and investment in sustainable industries, ultimately paving the way for inclusive, sustainable growth in Africa.

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USAID and Prosper Africa, a presidential level national security initiative to increase two-way trade and investment between the United States and African countries recognize the potential of climate finance.

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Thu, 10/10/2024 – 12:00

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Embedding environmental stewardship into IT governance frameworks

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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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