Revue d'économie du développement 2022/4 (vol. 32) : L'Afrique face au changement climatique : quels choix financiers ? Conférence Banque de France-Ferdi-AFD 2021
December 31, 2022
The objective of the conference was to address the financial implications of climate change for Africa. The diversity of speakers, from Africa and elsewhere, academics and experts with a wide range of experience, helped to shed light on these issues:
Africa is one of the most vulnerable regions to climate change. In addition to physical vulnerabilities, the continent suffers from socio-economic vulnerabilities, associated in particular with low levels of development and human capital. African countries, which are often low-income countries, are poorly equipped to cope with the consequences of climate change and show little resilience in the event of natural disasters. The risks of crises, conflicts and migration caused by global warming are particularly high. The growing human and economic costs of climate change therefore appear disproportionate to Africa's small contribution to global carbon dioxide emissions.
Domestic public resources may not be sufficient to cover Africa’s transition financing needs. Beyond simple mitigation the effects of climate change, this implies adapting infrastructure and production systems towards sustainable models, in particular in the agricultural sector. This may involve difficult financial trade-offs for the achievement of other sustainable development objectives. Given the low level of mobilization of public resources, financing the fight against climate change in Africa requires the participation of all stakeholders, both private and public, in particular that of the international community. Commitments to transfer USD 100 billion per year were thus set out in the 2015 Paris Agreement.
The financial sector can play a key role in ensuring the effective mobilization of financial resources and improving resilience. In particular, it can facilitate the allocation of funds to sustainable investments and help hedge new risks (insurance). The role of private finance is particularly important as the financial space of governments, households and businesses alike may be shrinking in the face of climate pressure. This is a challenge for relatively underdeveloped financial systems. Moreover, it requires that financial actors themselves be resilient enough to cope with the effects of climate change, in particular on the profitability of financed assets and the creditworthiness of borrowers. The financial implications of climate change in Africa thus reflect different constraints and opportunities from those in developed countries.
Sylvie Goulard, Deputy Governor, Banque de France
Rabah Arezki, Chief Economist and for Economic Governance and Knowledge Management, African Development Bank
Analyzing the consequences of climate change in Africa and assessing the financing needed to enable adaptation and mitigation.
Moderator: Thomas Mélonio, Executive Director of Innovation, Research, and Knowledge , AFD
3:15 pm ● The physical and economic impacts of climate change in Africa
Fatima Denton, Director, Institute for Natural Resources in Africa, United Nations University
Discussant: Sosso Feindouno, Research Officer, Foundation for Studies and Research on International Development (FERDI)
Questions from the floor
3:50 pm ● Diagnosis of Africa's financial needs for climate change adaptation and mitigation. The role of adaptation and mitigation in achieving the SDGs
Thibaud Voïta, Head of knowledge products, NDC Partnership
Discussant : Nathalie Delapalme, Executive Director, Fondation Afrique Europe (Mo Ibrahim)
4:20 pm ● Current funding and opportunities to finance adaption and mitigation
Angela Falconer, Director, Climate Policy Initiative
Discussant : Olivier Cattaneo, Head of Unit, Policy Analysis and Strategy, Development Co-operation Directorate, Organisation for Economic Co-operation and Development (OECD)
Questions from the floor
Analyzing the different instruments to enable a transition in Africa.
Moderator: Bruno Cabrillac, Deputy Director General Economics and International, Banque de France
2:30 pm ● Is the carbon tax a possible solution for Africa?
Simon Black, Climate Economist, IMF
Discussants:
Fama Gueye, Professor, Faculté des Sciences Economiques et de Gestion à l'Université de Dakar (FASEG/UCAD). Research assistant, WASCAL/UCAD
Christian Gollier, Executive Director, Toulouse School of Economics
Questions from the floor
3:05 pm ● Implications of monetary policy and banking regulation to climate change mitigation in Africa
Hiba Zahoui, Director of banking supervision, Bank Al Maghrib
Questions from the floor
3:40 pm ● Exchange rate policy and global warming: Implications for Africa
Jean-Louis Arcand, Professor, Graduate Institute of International and Development Studies, University of Geneva. Senior Fellow, Foundation for Studies and Research on International Development (FERDI)
Discussant: Ousmane Samba, General Manager, Centre Ouest Africain de Formation et d'Etudes Bancaires (COFEB), Central Bank of West African States (BCEAO)
Questions from the floor
4:15 pm ● Ways of integrating climate into investment decisions : The experiences of development banks
Ambroise Fayolle, Vice-President, European Investment Bank (EIB)
Discussant: Sébastien Treyer, Executive Director, Institut du Développement Durable et des Relations Internationales (IDDRI)
Questions from the floor
Evaluating factors of vulnerability of economic stakeholders and ways to improve their resilience.
Moderator: Vianney Dequiedt, Scientific director, FERDI. Scientific leader, Labex IDGM+. Researcher Cerdi-UCA.
2:30 pm ● Recent developments in insurance to reduce the vulnerability of households and firms to climate change
Michael Carter, Distinguished Professor, University of California, Davis.
Discussant: Tanguy Touffut, CEO and co-founder, Descartes Underwriting
Questions from the floor
3:05 pm ● Impact of climate change on the stability of the financial system
Luiz Pereira Da Silva, Deputy General Manager, Bank for International Settlements (BIS)
Discussant: Ngueto Yambaye, General Manager, Fagace
Questions from the floor
3:40 pm ● Climate change, a threat to fiscal sustainability?
Roland Kpodar, Deputy Unit Chief in the Strategy, Policy and Review Department, International Monetary Fund. Senior Fellow, Foundation for Studies and Research on International Development (FERDI)
Discussant:
Ibrahima Sarr, General Manager, Somiva
Paul Teboul, Head of Office Multifin 2, Treasury,France
Questions from the floor
Will the financial instruments of the climate change policy be globally effective? Can they also be used to address other environmental issues?
Moderator: Patrick Guillaumont, President, Foundation for Studies and Research on International Development (FERDI)
Discussants: Youba Sokona, Vice-President, GIEC. Special Advisor for sustainable development, South Center ● Arlette Soudan-Nonault, Ministre de l’Environnement, du Développement Durable et du Bassin du Congo de la République du Congo, Coordinatrice technique de la Commission Climat du Bassin du Congo ● Abbas Mahamat Tolli, Governor, Bank of Central African States (BEAC) ● Tao Zhang, Deputy Managing Director, International Monetary Fund (IMF)
Thomas Mélonio, Executive Director of Innovation, Research, and Knowledge , AFD
