Dr. Mohmmed Amin, Minister of State in Charge of Finance, says recent political unrest in the region is damaging efforts to tackle climate change on the African continent. He stressed the need for Africa's political climate to remain stable to achieve policy consistency in tackling the challenges associated with climate change. Dr Amin made the remarks during the 2023 African Climate Conference, which was held in Nairobi, Kenya. To promote the continent's quest for investment funding, Mr. Anim emphasised the importance of policy consistency. To buttress his point, he indicated that, regardless of how solid the structural and political reforms were, conflicts and political instability in one nation might have detrimental spillover effects on nearby countries. He advised the countries that the moment had come for Africa to guard itself against acts that threatened regional stability and collaboration. Thus, he encouraged them to capitalise on its enormous prospects for the benefit of the people on the continent. 'Overall, conflict in Africa can have far-reaching and complex consequences for international investment and regional economic development. It is critical for governments, corporations, and other stakeholders to collaborate in order to address the core causes of conflict and create stability, security, and prosperity,'' he said. Dr. Amin also advised the countries to explore high-level ratio instruments such as green bonds to raise significant financial resources for climate-related projects. The 2023 Africa Climate Summit is organised under the theme 'Driving Green Growth and Climate Finance Solutions for Africa and the World.'' The meeting has been called to address Africa's growing vulnerability to climate change and the costs required to deal with the problem. He called for capacity building among African nations in the area of green bonds as some countries lacked the experts to effectively structure and issue instruments. ''Again, there is a need for standardised frameworks and certification processes that instil confidence in investors. Harmonising these standards at a regional level could facilitate cross-border investment and boost investor confidence,'' he noted. According to him, the V20 is facing several challenges, particularly accessing capital, the underrepresentation of climate-vulnerable countries in global governance, and international trade mitigations. He said the countries on the continent want to achieve climate prosperity, so a comprehensive global financial framework is essential. To achieve this goal, he advocated for a worldwide financial reform agenda in which multilateral development institutions, particularly those working on the continent, would increase their resources for climate-related operations. This financing, he said, would enable regional institutions strategies to work effectively to address climate change. ''Another way to address the challenge of creating fiscal space for climate action is for the global system to move away from austerity measures while accounting for the impact of climate change on debt financing,'' he advised. He stated that countries facing climate vulnerability were more likely to suffer from serious debt. To address this challenge, he underscored the importance of conducting debt sustainability analysis for these countries to provide financial liquidity for such countries in the region. He called for collaborations between advanced countries and climate-vulnerable countries instead of rejecting products from Africa due to their high carbon content.

Source: Ghana News Agency