West African Alliance on Carbon Markets andClimate Finance

Presentation of the Allianceand its activities

Ousmane Fall Sarr,
Coordonator of West African Allianceon Carbon Markets and Climate FinanceContents
The Alliance……………………………………..….………….......1

Alliance Supported activities…………………..……………..… 2

Alliance Organisation…………………………………………..… 3

Alliance achievements & activities…………………………..… 4

New opportunities and way forward…………………………..… 52

The Alliance3

Member countries

Vision & Mission•Launched in Marrakech during COP22 in 2016

•Enhance the position of West African countries toparticipate in international carbon markets, benefit fromtechnology transfer and access result-based climate
finance for NDC implementation

Objectives•

Foster active participation by West Africandelegates in the UNFCCC negotiations•

Promote access to market mechanisms andclimate finance opportunities•

Pilot the transition of CDM related capacities andactivities to the Paris Agreement context•

Support Article 6 pilot experiences in the subregion while sharing implementation knowledge in
the negotiations and vice versa•

And moreCaboVerdeCurrently supported by:Source: University of Texas Libraries

Alliance supported activities
Supported activities
Workshops & meetings

Member participation at COPs andinternational events
Technical work: Article 6 negotiations, incountry readiness, CDM transition to A6.4,
support to mitigation projects, reports, andstudies
Outreach, networking, and communication
Alliance management

Organisation
Steering committee members
Coordinator, Secretriat, Climate Focus, Donors,
member country representatives

Strategicguidance

The Coordinator

Implementation
coordination

Financial partner:
West African Development
Bank (RCC Lomé / BOAD)

16 Member Countries(Alliance nationalfocal points)

The Secretariat(ENDA Energie)

Technical Partners: Climate Focus; Perspectives; AERA Group; AEE
1. Carbon Pricing WG

ThematicWorking
Groups &ConsultationFora

2. Transparency WG

3. Climate Finance WG

Policy makers forum

Strategic partners forum

ITMO Buyers

Development
Organisations

4. Tech Transfer WG

Project developers forumDonors

Alliance achievements & activities
Sub-regional cooperation and coordination
Implemented in-person members’ meetings (5) with the last one being on March 2022 in Lomé, Togo
Support to WAA member countries’participation at CoPs and SBs
Creation of thematic working groups (4) (carbon markets and pricing, transparency, climate finance and technology transfer) to sharpen members’
engagement in international negotiation processes
Two rounds of ITMO buyers-sellers roundtable to improve members’ participation in Article 6 pilots (jointly WAA – EAA)
Initiated partnerships with regional and international actors (UNFCCC, ECOWAS, WAEMU, EAA, BMWK, KliK, AfDB, AGN, World Bank, UNDP, IETA,CPLC, Carbon Market Fairness and Transparency Coalition, Pacific Alliance)
Supported ECOWAS with A6.4 sub-regional dialogue and Climate Finance needs-based strategy development

Support for national Article 6 readiness
Hosted Thematic workshops (5) and preparatory meetings for negotiations (10+)(Article 6 components, CDM transitioning, Share of Proceeds, Corresponding Adjustment, etc.)
Report: Article 6 readiness in West Africa. A scoping study assessing Article 6 readiness support needs of WA countries
In-country readiness support for Nigeria and Togo

X

Report: Blueprint for Article 6 readiness in member countries of the West African Alliance

Enhanced access to finance for WA mitigation projects and programmes
Report: Stakeholders’ Perspectives on Carbon and Climate Finance in West Africa – Barriers and Opportunities
Developed a stakeholder’s database intended for supporting strategic networking within the sub-region. Outcome: Stakeholder mapping toolOutreach
Hosting side events at I4C event and African Climate Weeks
Established a communication structure and social media strategy

Offsetting of the Alliance related flightemissions through a Gold Standard Projectin Nigeria (Alliance neutrality program)Recent publications
Article 6 Readiness Blueprint

Access to Finance Report1.

ReadinessBlueprint

2.

State of climate &carbon finance inWest AfricaAnalysis Overview

11

Purpose of the analysis

Good to know

Aggregate data on climate- andcarbon finance flows to West
Africa to understand the current state andWest Africa on the global stage
Recipient of only 4.6% of total

trends in the region.

international climate finance flows
during the assessed period 2006-

First publicly available analysis of2021

its kindHosts only 0.3% of all carbon

Analysis focus
International climate finance channelled throughmultilateral climate finance funds, specifically tomitigation activities
Adaptation activities have been excluded

projects registered to date globally
under the CDM and selected voluntarystandards

Climate Finance in West Africa
Climate finance analysis
104 GHG mitigation programmes
are funded by international climate financefunds
USD 864 million allocated to these
programmes as of 2022 of which 30%
has been disbursed

Allocated vs. disbursed finance, by sector:% Disbursed

Allocated

12Leading Funds: CIF, GCF, GEF
Responsible for 88% of total financeallocated by multilateral climate funds toWest Africa

TrendsEnergy and forestry projects 3/4 of all
approved projects & 4/5 of all regional
finance flows since 2006

Approved climate finance projects, by sector:

Disbursed

93105328

EnergyForestry

Agriculture

Transportation

Industry• Approved climate finance programmes per West Africancountry, by mitigation project type:
Agriculture0%
Benin
Burkina Faso
Cabo Verde
ChadCôte D’Ivoire
The Gambia
Ghana
GuineaGuinea-Bissau
Liberia
Mali
Mauritania
Niger
Nigeria
SenegalSierra Leone
Togo

Energy20%

Forestry
40%

Transportation
60%

13

Water & Resilience
80%

100%

Carbon Finance in West Africa
Carbon finance analysis

14367 carbon market activities under

Carbon finance flows
Since 2010, USD 100 million flows,

CDM or voluntary standards of which 1/3
have issued carbon credits
As of 2022, these activities havecollectively issued 24.7 millionTrends

carbon credits

Number of activities

Registered activities under the CDM and VCM, by category:
160
140
120
100
80
60
40
200

VCM projects

CDM projects

half of which can be linked to 2021
issuances alone

Strong trends shown towards

efficient cookstove projects
followed by clean water and thensolar projects

• Registered activities under the CDM and the VCM
per country, by project type
Clean waterIndustrial gases
Waste to energy0%
Benin
Burkina Faso
Côte D’Ivoire
The Gambia
Ghana
GuineaGuinea-Bissau
Liberia
Mali
Mauritania
Niger
Nigeria
SenegalSierra Leone
Togo

20%

Composting
NBS – AvoidedWind
40%

Efficient cookstoves
NBS – Removed
Other
60%

80%

Hydro
Solar
100%

New Opportunities and way forward
New opportunities
Positively, COP27 resulted in progress on :❑ Adopting finally the A6 Rulebook,❑ Launching of many Carbon Market initiatives (ACMI, US Catalyst, CB initiative from UNFCCC, Japan, etc)
For example, the ACMI sets ambitious targets for Africa:•Produce 300 million carbon credits annually by 2030, and 1.5 billion credits annually by 2050.

•Unlock 6 billion in revenue by 2030 and over 120 billion by 2050.

•Support 30 million jobs by 2030 and over 110 million jobs by 2050.

•

Distribute revenue equitably and transparently with local communities.

❑ Signature of some Bilateral Agreements for ITMO transaction under A 6.2, in some countries (Senegal, Ghana)New Opportunities and way forward
Way Forward: Alliance main objectives
1. Continue to Strengthening the African Voice during UNFCCC Negotiation process and make sure that rules works for us
2. Work on Moving Towards real Implementation and delivery of good quality carbon credits (Strengthen ongoing in country
readiness process and facilitate peer to peer learning)
3. Work on Unlocking West Africa's Carbon Market Potential
West Africa is home to numerous CDM activities and valuable experience has been gained in the implementation of innovativeconcepts, such as Programme of Activities and Standardized Baselines. Ensuring the continuity of future ready activities andexploring how promising CDM concepts can be integrated into the Paris regime are among the main objectives the Alliance ispursuing). Furthermore, the Alliance is working for better West African Private sector involvement in carbon markets
4. Provide assistance on Linking Carbon Markets with Climate Finance
The framework and the infrastructure introduced with the CDM have fostered the emergence of climate change mitigation
project ideas in Africa. Some of these were not brought to the implementation stage, however, due to the difficulties involved
in finding financial support in tight market conditions. Under these circumstances, climate finance represents an innovative
way to make such projects viable.
5. Promote the Development in the future of Regional Domestic Markets and Carbon Pricing systems:
Carbon pricing is spreading worldwide, and a growing number of countries are exploring ways to introduce carbon taxation ordomestic emission trading schemes (ETS). In west Africa, few initiatives exist. The Alliance will work on exchanging experience
gained, providing technical support, sharing lessons learned, and advice on how to address issues like CBAM.

Main Alliance Upcoming Event :September 26 – 28 in Abidjan (Côte d’Ivoire)
Launching of the WAA initiative:“WEST AFRICA CARBON MARKET HUB”______
Theme of this year :“Scaling up public and private capacity todeliver the goals of the Paris Agreement”
This event is a Capacity Building activity of the Alliance Targeting : West African
Private Sector actors, Policy Makers, Local Communities, NGOThank you
Contact : ofsarr@yahoo.com