By Africa Links 24
Published on 2024-02-08 10:26:45
Uganda has recently updated its climate change plan, known as its Nationally Determined Contributions (NDCs), to reflect its increased commitment to addressing the global challenge. The new plan, unveiled in 2023, aligns with the objectives of the Paris Agreement and sets a target of reducing greenhouse gas emissions by 24.7% by 2030, up from the previous target of 22%. However, this ambitious goal comes with a significant price tag that Uganda cannot afford on its own.
According to UNDP, Uganda needs approximately $28.1 billion to implement its NDC, but can only generate 15% of this amount from domestic sources. This financial challenge has led Uganda Development Bank (UDB) to actively seek funding from both public and private sources to support the country’s climate mitigation and adaptation plans.
Patricia Ojangole, the Managing Director of the Bank, has indicated that climate-related projects in Uganda have been receiving more interest from partners who want to invest through the Bank. She highlighted the Bank’s efforts to strengthen its appeal to local and global partners, including the process of getting certified as a sustainable development finance institution through the Sustainability Standards and Certification Initiative (SSCI).
One of the Bank’s recent initiatives is the establishment of the Climate Finance Facility (CFF) to implement its climate strategy and encourage private sector investment in climate action in Uganda. This initiative has helped mobilize more resources and created a platform where different partners can contribute resources specifically intended for green investments, ultimately contributing to reducing vulnerability, strengthening resilience, and minimizing emissions.
Ojangole and the Bank’s senior management also attended the recent COP28 in the UAE to position UDB and seek partners that can come together to advance Uganda’s climate ambitions. Some of the key outcomes of COP28 that will influence UDB’s climate strategy include the launch of the Loss and Damage Fund, and the increase in global commitments for the Green Climate Fund and Adaptation Fund, among others.
The launch of the Loss and Damage Fund, with about $700 million in initial pledges, is a significant step forward in helping Africa deal with the impact of climate change. The fund aims to help vulnerable countries recover from the damage caused by extreme weather events and has been a long-awaited demand of developing nations facing the cost of the destruction caused by climate change. Ojangole emphasized the Bank’s strategic positioning to benefit from the Fund on behalf of Uganda and support the country and its citizens to cope with the negative impacts of climate change.
The Green Climate Fund received new pledges of $12.8 billion at COP28, and other funds such as the Least Developed Countries Fund, Special Climate Change Fund, and Adaptation Fund also received significant boosts. Ojangole stated that the Bank is leveraging this global momentum to access concessional funding for Uganda, including through applications to the Green Climate Fund and the Adaptation Fund for accreditation.
In addition to these efforts, the Bank has also launched the Project Preparation Facility and is investing in technology and digitization in the agricultural sector to drive Uganda’s transition to a low-carbon and climate-resilient economy.
UDB’s renewed emphasis on sustainability and climate financing aligns with Uganda’s goals to cut down greenhouse gas emissions more aggressively and speed up the climate transition. With the government’s support and its mission to expand funding sources further, the Bank is poised to play a key role in the country’s national development strategy and attract support for Uganda’s climate transition.
