Paris Agreement: Implications for economic growth and development prospects in Africa

Main goals of the Paris Agreement

-Holding the increase in the global average temperature to well below 2 °C above pre-industrial levels and
pursuing efforts to limit the temperature increase to 1.5 °C above pre-industrial levels, recognizing that this
would significantly reduce the risks and impacts of climate change

- Increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience and low
greenhouse gas emissions development, in a manner that does not threaten food production

- Making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient
development. That is to say, start investing on green projects, such as the development of better solar panels.
On the other hand, it wouldn’t be consistent to invest on a coal mine

Africa: a modest share of responsibility

I think that, at this point, we more or less know this. In the past 60 years, this continent accounts ofr less than
4% of the total greenhouse gas emissions. We can see it in this graph of the carbon foorprint the carbon
footprint yet is one of the world regions most vulnerable to global warming

(source: Global Carbon Atlas)

Decarbonising Africa: it’s not an easy task

The basic implication of ratifying the Paris Agreement is to forget about replace the carbon-intensive
development model with a clean energy model. However, this is never an easy task. We’ve already talked
about stranded assets. It’s very difficult to change the productive matrix of a country in order to reduce CO2
emissions. This is especially the case for Africa. Look at the graph

Half of the exports depend on fossil fuels. They are already subject to the variation of commodity prices, and
reducing their production would make this worse for their trade balances.

There are also some disparities between countries. The richest countries of Africa, such as Mauritus and South
Africa, have a much more diversified export basket compared to other countries, so it might not be as difficult
as for others to reduce the production of fossil fuels.

Look at the other countries. It is not a secret why Angola is one of the very few countries that didn’t ratify the
Paris Agreement.

The short-term costs of policies to limit carbon emissions could be exarcebated in many countries that have
failed to achieved a structural transformation and trade diversification they need to reduce their excessive
dependence on natural resources for export and fiscal revenues

The Paris Agreement thus raises a number of daunting questions: How?? Even with the old and proven carbon-
intensive technologies, Africa has not succeeded in achieving the structural transformation needed. (Huge
correlation between country development and Co2 Emissions)

Possible approaches: Technology Transfer

The Paris Agreement recognizes the persistence of a large technological gap between the developed and
developing countries and acknowleges the existence of a chronic deficit of energy in the latter, and especially
in Africa. Thus, enhacing technology transfers is vital to success in holding down the increase.

Article 10

“(…) Parties, noting the importance of technology for the implementation of mitigation and adaptation
actions under this Agreement and recognizing existing technology deployment and dissemination efforts, shall
strengthen cooperative action on technology development and transfer”

Basically, developed countries should transfer want the know-how of several green products to
underdeveloped countries

Problem:

Attemps to promote technology transfer from advanced to developing countries have been rather
disappointing

Investment in R&D has never been made with the objective of promoting global equity, but to achieve
commercial advantage and market dominance.

I should stress the non-cooperative nature of international trade. In order to compete with other businesses,
private investors put their money in R&D projects, so why should they give them for free, even though it is
vital if we seek to reduce CO2 emissions?

Solution:

A new negotiation of TRIPS (stands for Agreement on Trade-Related Aspects of Intellectual Property Rights),
which regulates the intellectual property in an international basis. This Agreement in interpreted with the
principle of “promoting access to medicines for all” which saves a lots of lives every year. This principle could
be extended to climate change negotiations to increase global access to frontier and green technology, given
that the main goal is save all our lives.

Possible approaches: Technology Transfer

Paris Agreement, article 9:

“Developed country Parties shall provide financial resources to assist developing country Parties with respect
to both mitigation and adaptation in continuation of their existing obligations under the Convention”

As it was arranged in climate change negotiations that were held in Copenhagen in 2009, by 2020 the
developed world should start transferring US$100 billion to developing countries in order to help finance
adaptation and mitigation projects.

However, African authorities left the COP 21 without a legally binding agreement to prevent developed
countries to backslide their responsibilities.

So, basically, there are very few instruments to force the developed countries to fufill their promises.

On the other hand, the Green Climate Fund within the framework of the United Nations to finance green
projects in developed countries. Through this Fund, developed countries tranfer the money that was settled in
Copenhagen. However, efforts should be done to accomplish the target of $100 billion, and the withdrawal of
the US makes things even more difficult.
Recommendations and the way forward from the African
Development Bank
For African governments
1. Provide leadership in climate change governance.

African governments should speak with one voice at COP21 and ensure that the new global climate agreement
meets Africa’s specific needs. They should take the lead in advocating for adaptation that transforms their
economies and for adaptation finance through the Africa Initiative on Adaptation and Loss and Damage.

2. Create enabling environments to attract private investment.

Governments need to provide a regulatory and economic environment that encourages the private sector to
invest in green projects in priority sectors, depending on each country’s comparative and competitive
advantages.

3. Diversify sources of finance.

African governments should maximise opportunities to obtain funding from a wide range of sources, including
emerging donors such as Brazil, China, India and Saudi Arabia. Funding could be deployed more successfully by
further improving coordination of donor finance, according to the key principles of ownership (partner
countries set their own strategies), alignment (donor countries support these objectives), harmonisation
(donor countries avoid duplication) and accountability by donors and their partners.

For the international community

1. Set a high level of ambition for COP21 and beyond.

To fulfil their historical responsibility to help developing countries, including those in Africa, to address
their climate change challenges, developed countries must cut emissions and provide financial resources.
They should meet their commitment to mobilise $100 billion per annum of new and additional resources
by 2020. Developed countries and other countries with high emissions should also aim higher for COP21,
cutting emissions within scientific limits to ensure that the average global temperature increase is kept
below 1.5°C.

2. Support a coherent climate finance architecture: move away from fragmentation.

The current architecture is fragmented and inefficient, limiting Africa’s access to global climate
change finance. The international community should support a more streamlined process that creates
parity between adaptation and mitigation, establishes a regional balance in allocation, and gives voice
to developing

countries, especially the most vulnerable. The Green Climate Fund embodies some of these elements, but
needs to be well resourced to enable it achieve its objectives.

3. Support Africa’s initiatives to transition to green growth.

To ensure that Africa does not soon become the largest greenhouse gas emitter, developed countries
should support two African initiatives to keep the average global temperature increase below 1.5˚C:
the Africa Renewable Energy Initiative and the Africa Initiative on Adaptation and Loss and Damage.

4. Increase the coherence of climate finance in Africa.

Finance to address the climate challenge should meet agreed aid effectiveness principles of
ownership, alignment, harmonisation and accountability. Donors should support the AfDB’s
Transformative Partnership for Energy in Africa, which seeks to coordinate action aimed at ensuring
universal access to energy in Africa by 2025.
Sources:

http://www.globalcarbonatlas.org/en/CO2-emissions

file:///C:/Users/Juan%20Pablo/Desktop/Facultad/Climate%20Change%20and%20Energy%20Economics/Conte
ntServer.pdf

https://www.trademap.org

https://www.afdb.org/fileadmin/uploads/afdb/Documents/Events/COP21/The_African_Development_Bank_a
t_the_UNFCCC_COP21_meeting.pdf

Same colors
Highly dependent of agriculture
Gems
As we saw in the movie Carl
Green climate fund
Add Recommendations (see MATT folder)
Job possibilities
Research question

African union…..see picture