9. INDUSTRY, INNOVATION, AND INFRASTRUCTURE

“Investing in climate adaptation and low-carbon industrialization is essential for a sustainable future” says ECA’s Eunice

“Investing in climate adaptation and low-carbon industrialization is essential for a sustainable future” says ECA’s Eunice
Written by ZJbTFBGJ2T

“Investing in climate adaptation and low-carbon industrialization is essential for a sustainable future” says ECA’s Eunice  United Nations Economic Commission for Africa

“Investing in climate adaptation and low-carbon industrialization is essential for a sustainable future” says ECA’s Eunice

Addis Ababa, 26 August 2023

The Economic Commission for Africa (ECA) Organizes Green Investment Advocacy Forum for SADC

The Economic Commission for Africa (ECA) organized a Green Investment Advocacy Forum for the Southern African Development Community (SADC) on August 24, 2023. The virtual event, which was organized in partnership with the SADC Secretariat under the theme “Leveraging Green Investment Opportunities under the AfCFTA,” brought together a diverse array of stakeholders, including policymakers, experts, and private-sector representatives, to deliberate on strategic pathways to harness sustainable and green investments in the region.

AfCFTA and the Potential for Green Investments

The African Continental Free Trade Area (AfCFTA), signed by fifty-four African Union Member States in 2018, aims to create a single continental market for goods, services, and investments, facilitating business movement and fostering the groundwork for a Continental Customs Union. As the manufacturing sector is expected to significantly benefit from increased intraregional trade and investment under the AfCFTA, estimates from the ECA project a potential 39% increase in intra-African trade within the sector by 2045 if the AfCFTA is implemented as compared to a baseline scenario without the AfCFTA.

The Need for Green Investments

However, current emissions from the African manufacturing sector—accounting for about 30 to 40 percent of total African emissions—highlight the critical need for investments that support low-carbon or green manufacturing. At the same time, investments into climate-resilient solutions across all sectors will be key to help the region adapt to the impacts of climate change.

Importance of Green Growth and Climate Adaptation

Speaking at the forum, Ms Eunice Kamwendo, Director of the ECA Subregional Office for Southern Africa said: “Amidst our pursuit of industrialization, let’s remember the essence of Green Growth. Climate change is not a distant threat; it’s entwined in our daily reality, shaping how we trade and do business.” She pointed out that in order to secure our future, investing in climate adaptation and low-carbon industrialization is paramount.

AfCFTA’s Investment Protocol and Green Investments

The AfCFTA’s Investment Protocol provides a framework for countries to attract green investments by simplifying investment regulations, establishing transparent and predictable regulatory environments, and promoting cross-border green investment flows. By aligning with the AfCFTA, countries can enhance the adoption of critical green technologies, stimulate innovation, and increase market size.

SADC’s Progress and Green Investment Opportunities

The Southern African Development Community (SADC) has already laid the groundwork for attracting investment and fostering entrepreneurship through its Protocol on Finance and Investment. The AfCFTA, building on SADC’s progress, offers an ideal platform for exploring extensive green investment opportunities presented by the expanded continental market.

Promoting Early-Stage Green Investments

During the Forum, policy instruments to de-risk early-stage green investments emerged as essential, particularly to develop proof-of-concept cases for domestic investors and to reduce perceived risk for international investors. At the same time discussions highlighted the need for tailored policy solutions: while South Africa might benefit most from developing a bankable project pipeline, other SADC countries may want to concentrate on promoting Green Bonds through national champions.

Promoting Green Investments across SADC Member States

In conclusion, the Green Investment Advocacy Forum provided a vital platform for sharing best practices, fostering dialogue, and exploring collaborative avenues for promoting green investments across SADC Member States. The event underscored the significance of aligning green investments with the AfCFTA to drive sustainable economic growth and environmental resilience.

About the Project

Supported by the Danish International Development Agency (DANIDA), the Economic Commission for Africa (ECA) is committed to enhancing awareness within Africa’s Regional Economic Communities (RECs), including the Southern African Development Community (SADC), regarding the emerging green investment prospects fostered by the African Continental Free Trade Area (AfCFTA). Through a series of targeted advocacy forums at the REC level, ECA will engage with pertinent stakeholders to facilitate informed discussions.

SDGs, Targets, and Indicators

  1. SDG 9: Industry, Innovation, and Infrastructure

    • Target 9.2: Promote inclusive and sustainable industrialization and foster innovation
    • Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita
    • Indicator 9.2.2: Manufacturing employment as a proportion of total employment
  2. SDG 13: Climate Action

    • Target 13.2: Integrate climate change measures into national policies, strategies, and planning
    • Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula
    • Indicator 13.2.2: Number of countries that have communicated the strengthening of institutional, systemic, and individual capacity-building to implement adaptation, mitigation, and technology transfer
  3. SDG 17: Partnerships for the Goals

    • Target 17.14: Enhance policy coherence for sustainable development
    • Indicator 17.14.1: Number of countries with mechanisms in place to enhance policy coherence of sustainable development
    • Indicator 17.14.2: Enhanced global macroeconomic stability, including through policy coordination and policy coherence

Table: SDGs, Targets, and Indicators

SDGs Targets Indicators
SDG 9: Industry, Innovation, and Infrastructure Promote inclusive and sustainable industrialization and foster innovation
  • Manufacturing value added as a proportion of GDP and per capita (Indicator 9.2.1)
  • Manufacturing employment as a proportion of total employment (Indicator 9.2.2)
SDG 13: Climate Action Integrate climate change measures into national policies, strategies, and planning
  • Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula (Indicator 13.2.1)
  • Number of countries that have communicated the strengthening of institutional, systemic, and individual capacity-building to implement adaptation, mitigation, and technology transfer (Indicator 13.2.2)
SDG 17: Partnerships for the Goals Enhance policy coherence for sustainable development
  • Number of countries with mechanisms in place to enhance policy coherence of sustainable development (Indicator 17.14.1)
  • Enhanced global macroeconomic stability, including through policy coordination and policy coherence (Indicator 17.14.2)

Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The SDGs that are addressed or connected to the issues highlighted in the article are SDG 9: Industry, Innovation, and Infrastructure, SDG 13: Climate Action, and SDG 17: Partnerships for the Goals.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the specific targets under the identified SDGs are:
– Target 9.2: Promote inclusive and sustainable industrialization and foster innovation
– Target 13.2: Integrate climate change measures into national policies, strategies, and planning
– Target 17.14: Enhance policy coherence for sustainable development

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, there are indicators mentioned or implied in the article that can be used to measure progress towards the identified targets. These indicators include:
– Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita
– Indicator 9.2.2: Manufacturing employment as a proportion of total employment
– Indicator 13.2.1: Number of countries that have integrated mitigation, adaptation, impact reduction, and early warning into primary, secondary, and tertiary curricula
– Indicator 13.2.2: Number of countries that have communicated the strengthening of institutional, systemic, and individual capacity-building to implement adaptation, mitigation, and technology transfer
– Indicator 17.14.1: Number of countries with mechanisms in place to enhance policy coherence of sustainable development
– Indicator 17.14.2: Enhanced global macroeconomic stability, including through policy coordination and policy coherence

These indicators can be used to measure progress towards the targets by tracking the relevant data and assessing the extent to which the targets are being achieved.

Overall, the article highlights the importance of green investments, sustainable industrialization, climate action, and partnerships for achieving sustainable development goals. The African Continental Free Trade Area (AfCFTA) and the Southern African Development Community (SADC) are identified as key platforms for promoting green investments and driving economic growth while addressing climate change challenges.

Source: uneca.org

 

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