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ANALYSIS - Few Funds Yet for UN's New Africa Carbon Plan
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KENYA: February 9, 2007


NAIROBI - A host of plans could help Africa gain from booming investment in clean energy projects, but only modest funds have been committed to them by rich nations so far, officials said.


Nearly three months ago, outgoing UN Secretary-General Kofi Annan unveiled the "Nairobi Framework": a plan by six UN agencies to help the poorest continent get a bigger slice of investment in clean technologies like wind and hydropower.

Several European Union countries are now studying proposals to help Africa gain more funds under the Clean Development Mechanism (CDM), a part of the Kyoto Protocol that lets industrialised nations meet targets to cut greenhouse gases by funding green energy development in poor nations.

"When we get those (European) funds, that will let this be rolled out in many countries, and we are talking really big money," Olaf Kjorven, energy and environment director of the UN Development Programme, told Reuters.

The CDM trade could reach US$100 billion annually by 2050, the Secretariat of the UN Framework Convention on Climate Change (UNFCCC) predicts. But much depends on whether governments can agree a new emissions ceiling before Kyoto expires in 2012.

"It is very clear African countries feel left behind by CDM," Yvo de Boer, the head of the UNFCCC, told Reuters on Wednesday at a major UN environment meeting in Kenya.

"The reason is the market potential in Africa is quite often smaller than in other countries, and many African countries are still struggling to put the right institutions in place."

Experts say Africa contributes little to harmful carbon dioxide emissions but its lack of development and geography means it has the most to lose from dire forecasts of more storms, floods and droughts triggered by warming.


CHINA, INDIA

The vast majority of CDM funds that could help it adapt to the wrenching changes have gone to China, India and Brazil.

That is partly because most African countries have relatively limited industrial sectors and so fewer opportunities to reduce carbon emissions -- and many investors' perception that the continent is a tough place to do business.

A UNFCCC map shows about a dozen CDM projects in Africa -- from Morocco to South Africa -- out of a total 493 approved.

Under the Nairobi Framework, UN experts would also advise African nations on how to "climate proof" crops or infrastructure projects. But the amounts committed so far by donors to Annan's plan have been modest.

Spain launched the initiative with a 2 million euro (US$2.60 million) pledge, and Sweden will contribute US$675,000 to a US$1.2 million programme in several east and south African countries, UN officials say. Britain and Norway are also mulling donations.

The UN Environment Programme (UNEP) already runs CDM capacity building projects for policymakers and local consultants in Ghana, Mozambique, Zambia, Uganda and Cameroon, largely under an initiative paid for by the Netherlands.

Under the new proposals, that training will be widened.

"Those activities will now be supplemented and expanded to new countries. We're looking at working with Kenya, Malawi and possibly Botswana," said Sami Kamel, a senior UNEP economist.

The Framework also seeks to build south-south cooperation, he said, for instance by helping South Africa -- which hosts most of the handful of CDM projects in the Sub-Saharan region -- pass on its experience to other African states.


Story by Daniel Wallis


REUTERS NEWS SERVICE

Reuters



© 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.
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