KEPSA, represented by Ms Faith Ngige, Climate Business Information Network Kenya (CBIN-K) Coordinator, participated in the State of Green, COP 28 side event that took place on December 2, 2023, at the Denmark Pavilion, UAE, focusing on climate entrepreneurs’ journey to successful investment in green solutions. The objective of the session was to share insights between climate-prenuer start-ups, policymakers, and investors on the successes and challenges climate entrepreneurs face on their journey to scale and transition toward a net-zero economy.

The key speakers at the session included Dr. Chris Kiptoo, Principal Secretary, National Treasury and Economic Planning; Amb. Ole Thonke, Undersecretary for Development Policy, Ministry of Foreign Affairs, Denmark; Ms.  Robyn McGuckin, Executive Director, P4G; Ms. Melanie Robinson, Global Climate Program Director, World Resources Institute (WRI); Ms. Lilian Macharia, Director for the Division of Portfolio Management, Green Climate Fund; and Mr. Khalid Duri, CEO, African Bamboo.

In the opening remarks, Mr. Ole Thonke highlighted that small and medium-sized enterprises (SMEs) play a pivotal role in driving change, constituting approximately 90% of all businesses. Particularly in emerging markets, they are responsible for generating 7 out of every 10 jobs. It is imperative to acknowledge that achieving global climate targets is contingent on mobilizing financial resources for SMEs. Access to finance remains a critical impediment to the growth and development of SMEs.

Dr. Kiptoo presented the steps Kenya has taken in developing a conducive policy and regulatory environment for driving green growth. The total amount required to implement Kenya’s nationally determined contribution is $62 billion USD (with $18 billion for mitigation and 44 billion for adaptation). The priority sectors indicated in the national climate change action plan III (2023–2027) are energy, agriculture, transport, water, and circular economy; forestry; industry; transport; and infrastructure. All these present opportunities for climate entrepreneurship.

Kenya has also developed a green fiscal and policy incentives framework that provides for both tax and non-tax measures to facilitate investment in the green economy. There are other innovative financing mechanisms under consideration, such as debt-for-nature swabs and green bonds. The regulatory framework for carbon trading has been provided, and the national Treasury and Economic Planning are the national designated authorities for the Green Climate Fund.

Ms. Lilian Macharia from the Green Climate Fund indicated that GCF was developing other avenues for funding climate resilience in emerging economies, such as creating dedicated funding for the resilience of farmers, developing insurance packages for supporting agri-prenuers, deploying measures to de-risk capital, and providing support for sector-specific interventions.

In order to enhance investment in green solutions, Mr. Khalid Duri, CEO of African Bamboo, indicated that climate entrepreneurs require support in terms of technical skills for cross-sectoral interventions and that green solutions should respond to local needs and enhance last-mile access to services.

The session concluded that Public-Private collaboration represents opportunities for North-South partnerships that can significantly contribute to achieving the objectives of the Paris Agreement and the Sustainable Development Goals (SDGs).