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Sweden and UNDP deploy $28million to amplify private climate investments in Africa

By UNDP
General News Sweden and UNDP deploy 28million to amplify private climate investments in Africa
DEC 10, 2023 LISTEN

The Swedish Energy Agency and the United Nations Development Programme (UNDP) today announced a transformative $28.2 million agreement to support the reduction of global carbon emissions and boost poverty reduction efforts in African countries.

The new UNDP/ Swedish Energy Agency initiative “Climate Ambition Raising Through Article 6 (CARTA)” will indirectly underwrite climate mitigation projects that also deliver strong development benefits, and is in line with Sweden’s commitment to reduce its emissions through investments in Internationally Transferrable Mitigation Outcomes (ITMOs) and consistent with Article 6 of the Paris Agreement. This innovative agreement is the second of its kind at UNDP, following a precedent set with the Swiss Federal Office for the Environment in 2022 that is already producing results in Ghana, Vanuatu and elsewhere.

Sandra Lindström, Head of International Climate Cooperation at the Swedish Energy Agency, emphasized CARTA’s dual purpose: reducing global emissions and supporting African development. “Beyond reducing emissions of greenhouse gases, this partnership with UNDP, through Article 6 of the Paris Agreement, can produce substantial development outcomes on the ground,” she said. “The results we expect to see include job creation, energy accessibility, fortification of livelihoods, food security assurance, and the propulsion of gender empowerment."

Ahunna Eziakonwa, UNDP Assistant Administrator and Regional Director for Africa, noted that Article 6 could be a game-changer for many countries in Africa, emphasized the importance of making development projects more bankable and connecting them to private investments . "Article 6 isn't just a provision; it's a promise,” she said. “A promise that aligns global markets with sustainable development, fostering climate actions that will propel countries and communities forward, improve their access to climate finance and deliver tangible development for all."

As one of UNDP’s largest government contributors, Sweden is a critical partner in UNDP’s mission to end extreme poverty, reduce inequality and achieve the goals of the 2030 Agenda for Sustainable Development. UNDP’s work and the priorities of the Swedish Government converge in many areas, especially in our shared ambition to help countries attain the Sustainable Development Goals (SDGs) by strengthening democratic governance and the rule of law; taking action on climate change; and addressing the root causes of conflict in order to build sustainable peace.

Background: The Swedish Energy Agency is a Swedish government Agency that works for the use of renewable energy, improved technologies, a smarter end-use of energy, and mitigation of climate change. The United Nations Development Programme (UNDP) is the leading United Nations organization fighting to end the injustice of poverty, inequality and climate change. Working with our broad network of experts and partners in 170 countries, it helps nations to build integrated, lasting solutions for people and planet. Climate Ambition Raising Through Article 6 (CARTA) exemplifies UNDP's forward-thinking, 'future-smart' approach to development. It employs innovative financial mechanisms, collaborates with both governmental and private sector entities, and utilizes knowledge enhancement and capacity building. The aim is to promote integrated development outcomes that further progress on a range of Sustainable Development Goals (SDGs).

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