How to unlock climate change finance

Saturday February 10 2018

By LETTERS
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Last Sunday’s article by Robert Muthami, “Kenya should prioritise the financing of climate change adaptation” was very enlightening.

Kenya has limited capacity and finance to respond adequately to climate change. 

The World Bank estimates that the global economy will need $4.1 trillion in incremental investment between 2015 to 2030 to keep the temperatures within the internationally agreed limit of 20C, as stipulated in the Paris agreement.

Meeting this target will require significant investment in climate action. 

Kenya should prioritise the financing of climate change projects. Yet unlocking climate change finance is a long process.

The targeted projects must have high probability of success. To make a project bankable, it should have sound proposals. 

The key to designing fundable adaptation projects is thorough understanding of the financier’s requirements, project cycle, and proposal development formats.

Project developers must understand current directions and trends in climate change finance.

One must distinguish between parts of the project most appropriate for public finance and those matched with public private partnerships or other funding avenues.

Many factors guide investment decisions, which include impact potential, paradigm shift potential, social economic benefits, and country and community ownership.

The national climate change action plan is the principal tool for analysis and mainstreaming of climate change responses. 

Mwari Maina, Nyeri