N$100b kitty needed to combat climate change

Namibia will need N$100,7 billion to meet its climate change targets by 2030, according to the African Development Bank (AfDB).

A country focus report by AfDB has called on the private sector to play a bigger role in closing the climate financing gap.

“The private sector needs to play a more prominent role in closing the climate finance gap given the limited fiscal space, with the government’s budget further constrained by the adverse impact of external shocks on the economy,” says the report released last week.

Additionally, Namibia will need USD 565 million annually, which is equivalent to N$10,7 billion (according to the current exchange rate) annually, to achieve its green growth objectives.

“Namibia will need about USD 5,3 billion over the 2021-2030 period to meet its climate change targets and an average of USD 565 million annually,” says the report.

AfDB has proposed for the country to accelerate reforms that create a conducive environment for private sector investment.

This will leverage opportunities for private sector investments in green growth and reduce obstacles.

“The country should accelerate the business reforms for a conducive private sector investment environment, including measures to sustain macroeconomic stability,” reads the report.

“Namibia should tap into emerging innovative private sector financing mechanisms and enhance engagement with multilateral green finance institutions for an expanded pool of sustainable finance instruments,” it says.

The country has been advised to get more private sector representation in the existing national structure that deals with the green industry.

According to the report, Namibia’s initial Nationally Determined Contributors submission in 2015 committed to reduce economy-wide greenhouse gas emissions by 89% by 2030.

In its 2021 submission, the country increased its goal to 91%.

“This commitment keeps Namibia on its low carbon path as it is already a net sink of greenhouse gasses emissions,” says the report.