The Kenya Private Sector Alliance (KEPSA) in collaboration with the National Business Initiative, Federation of Egyptian Industries (FEI) and Nigeria Economic Summit with support from Africa Climate Foundation (ACF) organized three-part dialogue series on Shared Learning on Just Transition in Africa – Africa Business Collaboration on Road to CoP 27, Dialogue series. The second dialogue series took place on 22^nd September 2022 focusing on, “Re-Imagining Africa’s Economies Toward Sustainable, Inclusive, Net-Zero and Climate Resilient Futures.”

Ms Reitumetse Molostone of the National Business Initiative (NBI) South Africa, while expounding on the objectives of the meeting highlighted that the African Business Community is taking proactive steps toward driving competitive economies based on response to climate change opportunities and risks faced by the continent. The session was about sharing insights and experiences on how to achieve inclusive, competitive and sustainable economies in Africa. The   African continent should acknowledge the challenges as an opportunity to grow competitive and resilient economies ahead of CoP 27 taking place in Egypt.

Feedback from Climate Week New York

Ms Geeta Morar from the National Business Initiative attending Climate Week New York shared insights about the event organized by the Climate Group during New York Climate Week.  The business community has a crucial role to play in ensuring action is taken to mitigate climate impacts.  The strategy of transition should focus specifically on driving business actions and business ambition for climate change implementation.  The rising cost of living around the world is affecting the ability of businesses to invest and implement mitigation and adaptation initiatives. The complexity presents a worsening biodiversity and sustainability crisis. In order to build the resilience of businesses, economies, societies and the natural world, there is a need to urgently start building renewables so as to create jobs, support, upskilling and reskilling to enable diversification of economic activity in regions facing a high level of transitional risk.  She emphasized that the transition to renewable energy will continue and that businesses cannot allow policy and decision makers to backslide on the commitments already made, because they are integrated with long-term sustainability and competitiveness. Secondly, businesses must continue to take action to mitigate their emissions. The private sector should mobilize finances to ensure that the transition to renewables is implemented in a just way. She concluded that adaptation is very key for Africa as many countries have been exposed to climate shocks and extreme weather events around the world. There is a need to respond with an understanding of the risks of exposure in order to adapt and mobilize financial assurance.

Reimagining Africa Transitions: Presenter Mr Adnan Amin, Senior Research Fellow at the Harvard Kennedy -Advisory Council of Africa Climate Foundation

Mr Adnan Amin of the Africa Climate Foundation noted that climate discussions are dominating development debates and geopolitical developments, both in terms of the conflict in Europe as well as the changing polarity in the system. We are moving from a unipolar world into an increasingly multipolar world. This not only lays the frontlines on energy, food security, trade, technology and control of technologies but also gives the sense that, the choices for African economies will expand the choices of partners who provide financing, technology, development partners and investment opportunities. Africa has to take into account some of the fundamental issues in its developmental trajectory. There is a shift to a knowledge-based economy and value addition away from the extractive economies that Africa has depended upon for far too long. The world is adopting technology-based solutions for many pressing issues.  Africa must position itself not as a victim of climate change but as an agent of a sustainable future. In this new future, the new economic policy era should reflect the tangible private sector needs in order to advance financing as a driver.  The private sector in Africa has to position itself realistically on how it engages in the climate financing debate and future economic policy.  It’s important to review financial flows where the profits are expected to emerge in the dynamism of the public sector.  The private sector should accelerate the growth of capital for climate investments through relevant financing instruments.

Reimaging South Africa’s Just Transition - Ms Reitumetse Molostone, Head of the Environment and Society unit at the National Business Initiative in South Africa

Miss Reitumetse Molostone shared insights into the work of South Africa's National Business Initiative (NBI) in mapping out the business sector critical for a just transition. South Africa is characterized by a high rate of inequality, unemployment, and poverty, as well as has experienced extremely weak economic growth over the past decade. The country is also extremely vulnerable to the physical impacts of climate change.

The African region is a global hot hotspot, hence the need for a just transition is there, but the risks and social costs are huge.

However, the cost of inaction is even dire, and a carbon intense economy means that Africa will face high trade risks and decreasing competitiveness should trade partners act on their net-zero commitments. Africa might miss the opportunity of capturing new green industries to address existing social and economic issues. She further revealed that robust stakeholders' engagements have been critical to the success of the transition of South Africa and that South Africa can achieve 2020-2050 cumulative emissions of 10 GtCO2e. South Africa must act on issues so as to keep the chance of 1.5 degrees alive.

South Africa started transition work with, 38 sectors and some of the key and the biggest companies in South Africa, particularly from an emissions perspective, an energy perspective, petrochemicals and a whole range of sectors that are being proactive in responding to the challenges that the country needs to address.  Among the activities to be taken into consideration were not limited to; The Power Grid, Rollout Renewables, Establishment of a green hydrogen industry; expansion of rail infrastructure; densification of cities and urban areas, electricity and transport, increase use of private vs public transport; nutritional sustainable diets, before heavy manufacturing commodity costs and finally more disruptive action.

She concluded by emphasizing that, management of a just transition is key for all stakeholders; the private sector has to be a key part of this conversation, as there are opportunities as well as enormous risks to investments, that business has to be a part of in rebuilding societies and resilient economies going forward. Partnerships at multiple levels drive the strategic direction but also manifest at the country level in terms of investment and understanding.

Presenter Mr Peter Oloo, - Kenya Private Sector Alliance Environment Water and Natural Resource Sector Board

Mr Peter Oloo- The KEPSA Environment Water and Natural Sector Board provided an overview of Kenya’s response to climate change.  Kenya has a very clear national ambition for climate change including a reviewed national determined contribution that was submitted to the United Nations Framework Convention for Climate Change (UNFCCC) in December 2020. The Plan focuses on seven priority climate action areas where government efforts should be directed to achieve low-carbon-resilient development. These priority action sectors are a disaster (drought and floods) risk management, food and nutrition security, water and the blue economy, forestry, wildlife and tourism, health, sanitation and human settlements, manufacturing, and energy and transport.

He also highlighted that the energy sector in Kenya is responsible for three-quarters of the greenhouse gas emissions and it is thus a critical challenge for the private sector to put in measures to reduce emissions from the energy sector while ensuring that all people have access to clean energy. CoP 27 should be about implementing the nationally determined contribution (NDC’s) including adaptation and mitigation measures, mobilizing finance for adaptation in Kenya. KEPSA has developed the Private Sector Strategy 2020- 2030 which shall guide the private sector on the implementation of climate change solutions in Kenya.

Mr Oloo called for more active participation of the private sector participation in climate change mitigation and adaptation which is very critical for a sustainable future.   It has been widely acknowledged that private-public partnerships for mainstreaming climate change in the business models and strategies will play a key role in just transition.

Eng Ahmed Kamal Abdel Monem, Executive Director Federation of Egyptian Industries Environment Compliance Office

Eng. Ahmed Kamal Abdel Monem highlighted that Egypt launched the Egyptian National Climate Change Strategy 2050.  The strategy included adaptation and mitigation programs in all sectors until the year 2050 focusing on water, energy, transportation and agricultural resource. The cost of mitigation was ($211 billion) and adaptation was (($113 billion).  Egypt also launched plans to foster economic growth while reducing emissions in several sectors.   Cop27 is an opportunity to finalize the needed negotiation and to spur implementation of what had been promised during the Cop26 regarding implementation and the role of the private sector in Egypt.

The Federation of Egyptian industries represented the private sector in Egypt in the Africa Collaboration to Road CoP 27 and has been involved in many actions and programs related to climate change adaptation and mitigation using a cooperative model between the government and the private sector. The private sector issued green bonds as a financial instrument and introduced sustainability measures in the stock market.

He also revealed that the Egyptian government had put in place plans to boost economic growth while reducing emissions in several sectors. On Green Hydrogen Strategy, Egypt is being supported by the European Bank of Reconstruction and Development (EBRD) to achieve its renewable energy potential and to transition to a greener economy by assisting in the development of a national low-carbon hydrogen strategy. Eng. Kamal also said that the Egyptian local, winning projects will be showcased at COP27.

He concluded by indicating that Egypt has involved all sectors in a Go-Green initiative to document success stories of climate action implementation which will be showcased at CoP27. It was important to cooperate together for good preparation of the private sector position at CoP27and to make the best use of that opportunity that we have in Africa.

Mr Segun Adaju,- Nigeria Economic Summit Group Renewable Thematic lead and CEO Consistent Energy Limited President

Mr Segun Adaju noted that Nigeria was working towards a transition to net zero with the key objectives being to lift over 100million of Nigerians out of energy poverty.  Nigeria has a huge energy deficit while still facing the argument to change its focus to clean energy technologies.  Nigeria also has a very strong business to climate contribution plan which is focusing on adaptation and mitigation efforts through collaboration between government and private sector under public-private partnership arrangements for a climate change intervention.

He emphasized that the private sector has a vital role to play in climate in the Just Emery Transition and climate change, therefore the private sector must be considered as an equal partner by governments and allowed to play its significant role in the war against climate change through mobilization and supports from the governments in both capacities,

Conclusion

The second dialogue session on Africa Collaboration on Road to CoP 27, concluded and the host thanked everyone for their attention and to the speakers and guest speakers for contributing to the important insights. The session was very insightful and helpful and a great opening session in terms of what is happening in Africa's transition to a sustainable future, investment opportunities and what businesses and governments are doing to enable them to adapt to climate change.  

The third and final Africa Business Pre-CoP 27 Dialogue Series. will be held on 29th September 2022 and it will be an engagement with businesses from Kenya, South Africa, Nigeria and Egypt about the importance of partnerships to solve pressing climate and Just Transition-related challenges in Africa.