Gender and Climate Gender and Climate Change FinancingChange Financing

Coming out of the MarginsComing out of the MarginsRegional differentiation - AfricaRegional differentiation - Africa

Mariama WilliamsMariama Williamsmariamaw@hotmail.commariamaw@hotmail.com

                                                       

Africa produces one ton of CO2 per Africa produces one ton of CO2 per person per. South Africa, the most person per. South Africa, the most industrialised country of the continent, industrialised country of the continent, generates 8,44t, meanwhile Mali which generates 8,44t, meanwhile Mali which is at the lowest level of is at the lowest level of industrialisation, produces less than industrialisation, produces less than one-tenth of a ton per person per year. one-tenth of a ton per person per year. The whole of Africa produces about The whole of Africa produces about 920,000t each year, less than 4% of the 920,000t each year, less than 4% of the global production.global production.

UNECA (2009): a UNECA (2009): a ““number of factors number of factors explain Africaexplain Africa’’s low share of CDM s low share of CDM transactions... (including)… barriers transactions... (including)… barriers related to CDM procedures and related to CDM procedures and modalities; coverage of CDM; financial, modalities; coverage of CDM; financial, institutional and capacity barriers in institutional and capacity barriers in host countries; and, …low greenhouse host countries; and, …low greenhouse gas emissions in Africa, with possibly gas emissions in Africa, with possibly the exception of South Africa and the exception of South Africa and Nigeria…Nigeria…

Gender and cost effective Gender and cost effective mitigationmitigation

Increase funding for women farmers activities in the areas of Increase funding for women farmers activities in the areas of carbon sequestration. carbon sequestration. WomenWomen’’s activities in agriculture and s activities in agriculture and forestry such as .crop mixing can promote cost effective forestry such as .crop mixing can promote cost effective mitigationmitigation

““Carbon sequestration in soils and plants is the only strategy Carbon sequestration in soils and plants is the only strategy that can remove carbon from the atmosphere and, over time, that can remove carbon from the atmosphere and, over time, reduce atmosheric concentration of CO2. Carbon offset reduce atmosheric concentration of CO2. Carbon offset payments should be allowed for carbon sequestered in soils payments should be allowed for carbon sequestered in soils where low-cost monitoring is available. Funds for the where low-cost monitoring is available. Funds for the development of these monitoring systems should be part of development of these monitoring systems should be part of any outcome. Paying resource-poor farmers and any outcome. Paying resource-poor farmers and smallholders in developing countries for soil carbon smallholders in developing countries for soil carbon sequestration would contribute to GHG mitigation, provide sequestration would contribute to GHG mitigation, provide much needed resources to support development and adaption much needed resources to support development and adaption of improved crop technologies, and reduce rural poverty.of improved crop technologies, and reduce rural poverty.” ” Rattan Lal (IFPRI, 2009)Rattan Lal (IFPRI, 2009)

Gender and cost effective Gender and cost effective mitigationmitigation

UNFCCC 2008 cites the example of UNFCCC 2008 cites the example of the the Kenyan GovernmentKenyan Government’’s policy that s policy that promotes efficient cooking stoves as one promotes efficient cooking stoves as one example of how governments can, through example of how governments can, through such as grants or tax credits for research such as grants or tax credits for research spending, influences different stage of the spending, influences different stage of the mitigation technology development cycle. mitigation technology development cycle. Kenya sought to Kenya sought to ““support R&D activities support R&D activities that increase the efficiency of stoves and that increase the efficiency of stoves and lower their price, which will in turn make lower their price, which will in turn make the stoves more accessible to urban and the stoves more accessible to urban and rural poor populations rural poor populations

Gender and cost effective Gender and cost effective MitigationMitigation

There is evidence from a 2005 study from There is evidence from a 2005 study from Africa that shows that ‘improved fallow Africa that shows that ‘improved fallow system can yield sequestration between 0.1 system can yield sequestration between 0.1 -5.3 metric tons (mt) of carbon per hectare -5.3 metric tons (mt) of carbon per hectare per year” as compared to “conservation per year” as compared to “conservation farming without trees, 0 to 0.36 mt (ibid). farming without trees, 0 to 0.36 mt (ibid). There is also evidence that small scale There is also evidence that small scale irrigation facilities (such as undertaken by irrigation facilities (such as undertaken by the women of Ghana, Senegal and the the women of Ghana, Senegal and the Philippines) “not only conserve water in the Philippines) “not only conserve water in the face of weather variability but also increase face of weather variability but also increase crop productivity and soil carbon (Nelson, crop productivity and soil carbon (Nelson, IFPRI 2009). IFPRI 2009).

Technology Finance and GenderTechnology Finance and Gender

In the area of technology women play In the area of technology women play important role in cost effective Soft important role in cost effective Soft technology (i.e., Crop rotation technology (i.e., Crop rotation patterns)patterns)

and Hard Technology (i.e. and Hard Technology (i.e. Drought Drought resistant crop varieties, Seawalls and resistant crop varieties, Seawalls and irrigation techniques).irrigation techniques).

Gender Technology & FinanceGender Technology & Finance

“ “African women are particularly known to African women are particularly known to possess indigenous knowledge which helps to possess indigenous knowledge which helps to maintain household food security, particularly in maintain household food security, particularly in times of drought and famine. They often rely on times of drought and famine. They often rely on indigenous plants that are more tolerant to indigenous plants that are more tolerant to droughts and pests, providing a reserve for droughts and pests, providing a reserve for extended periods of economic hardship. In extended periods of economic hardship. In southern Sudan, for example, women are directly southern Sudan, for example, women are directly responsible for the selection of all sorghum seeds responsible for the selection of all sorghum seeds saved for planting each year. They preserve a saved for planting each year. They preserve a spread of varieties of seeds that will ensure spread of varieties of seeds that will ensure resistance to the range of conditions that may resistance to the range of conditions that may arise in any given growing season.”arise in any given growing season.”

Source: IPCC WGII Cross Sectoral Studies Chapter.Source: IPCC WGII Cross Sectoral Studies Chapter.

In Kenya, 48 percent of business owners In Kenya, 48 percent of business owners are women, yet they have only 7 percent are women, yet they have only 7 percent of formal credit and own just 1 percent of of formal credit and own just 1 percent of land. land.

In Nigeria, women own 25In Nigeria, women own 25––30 percent of 30 percent of registered businesses and access 10registered businesses and access 10––15 15 percent of bank credit.percent of bank credit.

In Uganda, women account for 39 percent In Uganda, women account for 39 percent of businesses with registered premises of businesses with registered premises and 9 percent of commercial bank credit. and 9 percent of commercial bank credit. International Financial Corporation (IFC).International Financial Corporation (IFC).

Gendered based inefficiency in financing, investment Gendered based inefficiency in financing, investment and credit flows also impact macro level variable and credit flows also impact macro level variable contributing to losses in real output, productivity growth contributing to losses in real output, productivity growth and ultimately overall economic performances.and ultimately overall economic performances.

In Burkina Faso, a transfer of resources (like fertilizer In Burkina Faso, a transfer of resources (like fertilizer and labour) from men’s to women’s plots of land within and labour) from men’s to women’s plots of land within the same household could increase agricultural output the same household could increase agricultural output by 10-20 per cent (World Bank 1999: 10). (World Bank) by 10-20 per cent (World Bank 1999: 10). (World Bank)

Research in Tanzania indicates that reducing time Research in Tanzania indicates that reducing time burdens of women in the care economy could increase burdens of women in the care economy could increase household cash incomes for smallholder coffee and household cash incomes for smallholder coffee and banana growers by 10 per cent, labour productivity by banana growers by 10 per cent, labour productivity by 15 per cent, and capital productivity by 44 per cent 15 per cent, and capital productivity by 44 per cent (World Bank 1999: 20).(World Bank 1999: 20).

Africa and CDMAfrica and CDM

AfricaAfrica’’s share of CDM transaction: s share of CDM transaction: low 5% (2007)low 5% (2007)

Why? Multiple reasons. But mainly Why? Multiple reasons. But mainly limitations of the current types of limitations of the current types of project eligible under current CDM project eligible under current CDM regime.regime.

Land use sectors. II. Scale of CDM. III. Land use sectors. II. Scale of CDM. III. Project financingProject financing

& Institutional capacity& Institutional capacity

Africa and Climate FinancingAfrica and Climate Financing

Africa account for only 4% of CDM Africa account for only 4% of CDM projects (UNFCCC 2009). projects (UNFCCC 2009).

African countries with registered CDM African countries with registered CDM projects include: Kenya, Tanzania and projects include: Kenya, Tanzania and Uganda (1 each), and South Africa (15), Uganda (1 each), and South Africa (15), IGES 2009). IGES 2009).

UNECA as of April 2009 23 African UNECA as of April 2009 23 African countries submitted a total of 102 CDM countries submitted a total of 102 CDM projects in the CDM pipeline (UNECA projects in the CDM pipeline (UNECA 2009). 2009).

Africa and CDM –Land useAfrica and CDM –Land use

AfricaAfrica’’s comparative advantage in terms of s comparative advantage in terms of CDM is in Land use, its greatest potential CDM is in Land use, its greatest potential for carbon finance.for carbon finance.

Why? Many African countries are dependent Why? Many African countries are dependent on agriculture.on agriculture.

Under current CDM, limited definition of Under current CDM, limited definition of such projects area allowed. Focus is on such projects area allowed. Focus is on afforestation/reforesteation activities plus afforestation/reforesteation activities plus agricultural waste projects. agricultural waste projects.

AfricaAfrica’’s advantage: sustainable land use s advantage: sustainable land use practicespractices

Africa and CDM: Financial Africa and CDM: Financial constraintsconstraints

Lack of financing & facility to provide:Lack of financing & facility to provide: Seed capitalSeed capital support scoping studies to ID project opp.support scoping studies to ID project opp. Many in private sector lack access seed Many in private sector lack access seed

/start up financing. (Financial barriers)/start up financing. (Financial barriers) Financial mechanism that can help to solve Financial mechanism that can help to solve

this include: increasing use of ODAthis include: increasing use of ODA Insurance mechanism, export guarantees Insurance mechanism, export guarantees

Africa and CDM: Scale of projectAfrica and CDM: Scale of project

Small scale CDM by simplifying CDM procedure to Small scale CDM by simplifying CDM procedure to enable lower project development costs (below a enable lower project development costs (below a certain threshold of emissions reduction) should certain threshold of emissions reduction) should enable more local development of projects in enable more local development of projects in Africa. But has not done so? (see $$$ etc.)Africa. But has not done so? (see $$$ etc.)

Need for additional simplification methodologies Need for additional simplification methodologies for sectors with high potential in Africafor sectors with high potential in Africa

In this regard, Programmatic CDM should also In this regard, Programmatic CDM should also have helped but also failed to: ( Technical have helped but also failed to: ( Technical barriers/allocation of risk/lack of simplification of barriers/allocation of risk/lack of simplification of monitoring process)monitoring process)

(Sectoral CDM (post 2012) also likely to be (Sectoral CDM (post 2012) also likely to be beneficial.beneficial.

Africa and CDM: Institutional Africa and CDM: Institutional CapacityCapacity

Need for policy intervention from Need for policy intervention from government and MDFIs to increase government and MDFIs to increase local capacity to establish the right local capacity to establish the right institutional framework to stimulate institutional framework to stimulate CDM projectsCDM projects

Nairobi Framework (for capacity Nairobi Framework (for capacity building in Africa)building in Africa)

Best practice of African government Best practice of African government to promote national CDMto promote national CDM