What financial choices for Africa in the face of climate change?

June 29, 2021 > July 01, 2021, En ligne

Online conference organized by Banque de France, FERDI, AFD. Three sessions scheduled over three afternoons. Each session has a registration link. Simultaneous translation French/English.

The objective of the conference is 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, will help to shed light on these issues:

  •  Assess the impact of climate change and the associated financing needs; 
  • Analyze the different options for financing the climate transition (players, tools); 
  • Shed light on the role of the financial sector in increasing the resilience of economic players. 
The financial challenges of climate change in Africa

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. 

Tuesday June 29th. 2:30 - 5:00 pm (Paris Time, GMT+2)

Register

Event with simultaneous translation French/English. 

Registration to the opening and session 1 (zoom)

OPENING

Sylvie Goulard, Deputy Governor, Banque de France

Rabah Arezki, Chief Economist and for Economic Governance and Knowledge Management, African Development Bank


SESSION 1. AFRICA'S RESPONSE TO CLIMATE CHANGE: ADAPTATION AND MITIGATION

Analyzing the consequences of climate change in Africa and assessing the financing needed to enable adaptation and mitigation.

  •  The physical and economic impacts of climate change in Africa
  • Current funding and opportunities to finance adaption and mitigation
  • Diagnosis of Africa's financial needs for climate change adaptation and mitigation. The role of adaptation and mitigation in achieving the SDGs 


Details of the program
Tuesday June 29th. 2:30 - 5:00 pm (Paris Time, GMT+2)

REGISTER

2:30 pm ● OPENING


SESSION 1. AFRICA'S RESPONSE TO CLIMATE CHANGE: 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 ● Current funding and opportunities to finance adaption and mitigation

Angela Falconer, Director, Climate Policy Initiative 

4:05 pm ● Diagnosis of Africa's financial needs for climate change adaptation and mitigation. The role of adaptation and mitigation in achieving the SDGs 

Secou Sarr, Director, ENDA Energie (tbc)

4:20 pm  ● Discussion (round-table)

Nathalie Delapalme, Executive Director, Fondation Afrique Europe (Mo Ibrahim) 

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

Wednesday June 30th. 2:30 - 5:00 pm (Paris Time, GMT+2)

Register

Event with simultaneous translation French/English. 

Registration. Session 2.

SESSION 2. HOW TO FINANCE THE TRANSITION IN AFRICA? ACTORS AND TOOLS

Analyzing the different instruments to enable a transition in Africa. 

  • Is the carbon tax a possible solution for Africa?
  •  Implications of monetary policy and banking regulation to climate change mitigation in Africa
  • Exchange rate policy and global warming: Implications for Africa
  • Ways of integrating climate into investment decisions : The experiences of development banks


Details of the program
Wednesday June 30th. 2:30 - 5:00 pm (Paris Time, GMT+2)

REGISTER

SESSION 2. HOW TO FINANCE THE TRANSITION IN AFRICA? ACTORS AND TOOLS

Moderator: Bruno Cabrillac, Deputy Director General Economics and International, Banque de France

2:30 pm ● Is the carbon tax a possible solution for Africa?

Seyni Nafo, High Representative of the President of the Republic of Mali for Climate. (tbc)

Discussant: 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

Adama Diaw, Professor-Researcher, Université Gaston Berger

Discussant: 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

Thursday 1st July. 2:30 -5:00 pm (Paris time, GMT+2)

Register

Event with simultaneous translation French/English. 

Resgister to session3, round-table and closing remarks

SESSION 3. RESILIENCE TO CLIMATE CHANGE

Evaluating factors of vulnerability of economic stakeholders and ways to improve their resilience. 

  • Recent developments in insurance to reduce the vulnerability of households and firms to climate change
  • Impact of climate change on the stability of the financial system 
  • Climate change, a threat to fiscal sustainability? 


ROUND-TABLE

Will the financial instruments of the climate change policy be globally effective? Can they also be used to address other environmental issues?


CLOSING REMARKS

Rémy Rioux, Chief Executive Officer, Agence française de développement (AFD)

Details of the programm
Thursday 1st July. 2:30 -5:00 pm (Paris time, GMT+2)

REGISTER

SESSION 3. RESILIENCE TO CLIMATE CHANGE

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


ROUND-TABLE

4:15 pm ● Round-Table. 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: Tao Zhang, Deputy Managing Director, International Monetary Fund (IMF) Youba Sokona, Vice-President, GIEC. Special Advisor for sustainable development, South Center Véra Songwe, Secrétaire exécutive, Economic Commission for Africa (tbc) Abbas Mahamat Tolli, Governor, Bank of Central African States (BEAC)


5: 00 pm ● CLOSING REMARKS

Rémy Rioux, Chief Executive Officer, Agence française de développement (AFD)