COP17 - Carbon Finance - Opportunities in Africa


TERI in partnership with United Nations Economic Commission for Africa (UNECA) organized a side event on Climate Finance in the Africa Pavilion at the COP 17. The presentation was titled 'Financial Gradients', with sub-themes on understanding Climate Finance, Clean Development Mechanism (CDM) Trends, and Opportunities for Africa, case study using financial gradients and espoused 'Resilience Centres' which can be considered a strategy for sustainable development and climate action using the concept of financial gradients.

The presentation tried to bring forth the opportunities for Africa in the domain of Carbon Finance. However, with the growing understanding of co-benefits, the presentation broadened the scope from carbon finance to the domain of climate finance and sustainable development. The presentation alluded to the fact that given the trends in financing, climate and sustainable development action needs to become investment grade. The presentation also inferred that given the trends in Climate Finance and CDM projects in Africa, a promising opportunity for attracting investment grade finance for climate action or sustainable development projects awaits the continent. One method of attracting or scaling up investments in the climate and sustainable development space is via a concept called Financial Gradients.

Financial Gradients as indicated in the presentation can be best described as an approach to analyze financial flows in programmes or projects in the sustainable development space. It can come up with key financial indicators which can point towards the health of the programme or project. Financial gradients can also act as a tool by which individually volatile sources of finance can be combined together to generate a single long-term and stable inflow of finance to fund a programme in sustainable development. Another way to describe Financial Gradients is as a financial mechanism to help in creating long-term strategies with the help of both business and financial models to sustain the programme or project.

The presentation ended with bringing to notice the concept of Resilience Centres, which is a strategy for co-benefits action, and uses financial gradients to ensure the financial viability of physical or actual centres which will work in the climate and sustainable development domain.

Date: 1 Dec 2011 Theme: Climate Change
Location: Africa Pavilion, ICC
Category: Any Other


Mr Arnab Bose
Research Associate
Earth Science and Climate Change Division