Finance ministry tasked with creating climate finance plan

As the world battles with climate change, climate financing has become a priority for many governments, and the Ministry of Finance has been tasked with establishing a framework to encourage private sector investment in climate change initiatives.

According to a recent report by the Standing Committee on Agriculture, Environment and Natural Resources, the move is needed to scale up the country’s climate action in light of the underperformance of financial commitments made by developed countries.

“We are disappointed by the ongoing shortfall.

There must be a more robust and predictable financial mechanism, and it must favour increased grant-based support,” said the committee.

The Paris Agreement contains a commitment to provide US$100 billion annually to help developing nations build climate resilience.

“The Ministry of Finance must develop a framework that encourages innovative financing, specifically aimed to engage the private sector in climate change mitigation and adaptation programmes,” said the committee.

Additionally the financing framework should create a conducive legal environment for private sector investments in order to enhance national efforts in addressing climate change.

The committee submitted these and other recommendations to parliament this week, and advocated for a balanced approach to climate finance that treats adaptation and mitigation equally.

“Our Nationally Determined Contributions depend on sustainable and long-term financing. We cannot focus solely on reducing emissions while neglecting the urgent need to adapt to a changing climate,” reads the report.

In this regard, Namibia is backing the establishment of a clear Global Goal on Adaptation, saying it would serve as a benchmark to guide and align global adaptation efforts.

Furthermore, the committee said proceeds from carbon markets under the Paris Agreement should be directed into the Adaptation Fund to help vulnerable countries build climate resilience.

This is in light of the increasing frequency and intensity of climate-related disasters across the African continent.

“It’s time we operationalise the Loss and Damage Fund.

These disasters are happening now – lives, homes and economies are being lost. We need new and additional resources, based on the polluter-pay principle,” reads the report.

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