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Kenya-UK Trade Deals Open Funding Taps for Green Projects in East Africa

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4 years ago

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When it comes to the big debates about climate change, Africa is the forgotten continent. It receives less than three percent of global climate finance and yet 30 out of the 40 most climate vulnerable countries in the world are in Africa. It contributes the least to global warming and yet extreme weather events are growing in both frequency and severity with a shocking knock-on impact on biodiversity loss.

However, while we tend to see Africa merely as a victim of climate change, this ignores the fact that it could be a large part of the solution as well.

From the forests of Gabon to the Congo Basin in Central Africa, the continent is rich in natural capital and countries are tapping into this potential. Take Kenya, which has become a leader in green energy with 90 percent of its energy production already renewable.

The recent visit to London by the Kenyan president Uhuru Kenyatta saw further progress with the announcement of UK investments in off-grid solar energy and a new fund to develop green, affordable housing. But it is in the area of green finance that the partnership between Kenya and the UK could prove to be even more significant. Although progress has been too slow and fragmentary, African countries have been getting themselves ready to receive a much bigger share of global climate finance.

Once this is invested in green projects, this will benefit the whole planet. Kenya has already been leading the way. It has removed tax on interest on green bonds. It has drafted a green fiscal policy incentives framework covering the whole economy and is now considering a carbon tax as well. Kenya’s inaugural sovereign green bond has been trailed for years and it is expected to make further announcements in the next few months.