- The Landscape of Climate Finance in Kenya report is the first attempt to track the climate finance flows in the country since the Paris Agreement.
- The report finds that Sh243.3 billion (USD 2.4 billion) flowed to climate-related investments in 2018, one third of the finance needed annually.
Non-state actors have called for heightened vigilance to protect climate cash from embezzlement.
This comes even as it emerges that 45 counties could benefit from $150 million (Sh17.39 billion) International Development Association credit that was approved by the World Bank Board on October 26, 2021.
The money will support climate resilience projects in rural areas.
Expected to be rolled out this year, the resources are supposed to be channeled through the new Financing Locally–Led Climate Action Programme.
Mombasa and Nairobi will not benefit from the cash as they are considered urban settlements.
The programme’s development objective is to deliver locally led climate resilience actions and strengthen county and national governments' capacity to manage climate risks.
At the county level, the FLLoCA initiative will be implemented under the Programme for Results instrument, in which counties will receive their annual disbursements based on their performance against a specified results-based criterion.
Climate finance is an important enabling aspect of the ongoing efforts to curb climate change.
On Friday, environment NGOs said there is need to enhance vigilance to ensure transparency and accountability.
They made the clarion call during the launch of follow the money campaign on climate finance at Double Tree by Hilton Hotel, Nairobi.
The initiative is being spearheaded by the Wangari Maathai Foundation, Pan African Climate Justice Alliance through the Kenya Platform for Climate Governance.
Festus Ng'eno, the chairman CECs Caucus on Water, Forestry and Mining Committee at the Council of Governors, said different policies and frameworks have been developed to address climate change effects.
Ngeno said CSOs have played a key role in the development of the frameworks. Ngeno said some of them are working on climate change climate finance regulations and action plan.
“Over 43 counties out of the 47 have put in place climate change Act and policies,” he said.
He said out of the 43 that have Climate Change Act and policies, all the counties have appropriated the climate change fund of one to two per cent and are on the final stages of opening special purpose account as they wait to fulfil other demands to get the climate cash.
Ngeno said 29 counties have finalised opening up the special purpose account for purposes of receiving the money under the FLLoCA programme.
He said counties that have not met the requirements were being helped to do so before the end of this financial year.
Counties will get the cash as grants. The national government will repay the loan.
The Paris Agreement sets a goal of mobilising $100 billion (Sh10.1 trillion) per year by 2020 to support mitigation and adaptation activities in developing countries.
The money, largely from developed countries, was to help developing ones mitigate and adapt to the impact of climate change.
Significant financial resources from the public and private sectors are expected to be channeled towards climate action.
During the event, experts said if the country is to take advantage of these opportunities, the proper institutional and financial mechanisms must be in place so that resources are directed efficiently toward national climate and development priorities.
In 2015, Kenya submitted its nationally determined contribution to the Paris Agreement, a landmark agreement to combat climate change.
It pledged to reduce its greenhouse gas emissions by 32 per cent by 2030 relative to the business-as usual scenario.
At the time, the government estimated Sh4,040 billion ($40 billion) would be needed by 2030 to meet its NDC target.
In 2018, these numbers were revised upwards in its National Climate Change Action plan to Sh1,848 billion ($18.3 billion) for the 2018-22 period only, equivalent to nearly Sh465 billion a year ($4.6 billion).
In December 2020 the government submitted an updated NDC further increasing the need.
The implementation cost of the updated NDC mitigation and adaptation is estimated to cost $62 billion (Sh6.710 trillion) between 2020 and 2030.
The Landscape of Climate Finance in Kenya report is the first attempt to track the climate finance flows in the country since the Paris Agreement.
The report finds that Sh243.3 billion ($2.4 billion) flowed to climate-related investments in 2018, one third of the finance needed annually.
This is approximately half of the financing Kenya needs annually to meet the targets set in its NDC.
Overall, public investment (from domestic and international providers) totalled Sh144.3 billion (59.4 per cent) while investment from the private sector totalled Sh98.9 billion (40.7 per cent.
To meet the climate ambitions outlined in the NDC, public and private climate finance needs to be scaled-up significantly by 2030.
World Resources Institute vice president and regional director for Africa Wanjira Maathai said resources must be used prudently for what is intended, as a lot of efforts go towards securing such resources.
"Communities should benefit from programmes funded by climate cash," she said.
Mathai said pledges made at the global level must also be followed.
Wangari Maathai programmes manager Irene Kerubo said young people must be involved as they will live longer with the impacts of climate change.
Head of programmes with PACJA Charles Mwangi said climate change is an existential threat to humans.
Mwangi said Africa contributes at least four per cent yet the continent is heavily impacted.
He said climate change impacts are set to affect SDGs and that Africa needs resources to build resilience.
"Africa is always shortchanged," Mwangi said.
However, the resources must be used for the intended purpose and those overseeing them must be held accountable.
African countries have been pushing for more resources to adapt and mitigate the impacts of climate change.
Mwangi said the conspiracy against Africa is further evidence about challenges bedeviling the continent.
He said climate cash into the continent was coming in form of loans, putting the continent into further problems.
The continent has been pushing to have its special needs and circumstances, a move the region will be pushing during the upcoming climate talks slated for Egypt later in the year.
Africa will also be pushing for loss and damage during the event.
Mwangi said when resources come, civil society organisations must ensure they reach where they are supposed to.
-Edited by SKanyara