08 Aug 2019 19:40pm
WINDHOEK, 08 AUG (NAMPA) The Ministry of Environment and Tourism (MET) has created a platform that will allow the private sector to access funds for climate-related investment from various international climate fund institutions such as the Green Climate Fund.
Speaking at the roadshow ceremony of the Climate Finance Facility (CFF) here on Thursday, Multilateral Environmental Agreements head in the ministry, Petrus Muteyauli said the private sector has the potential to overcome many climate-related challenges, however only the Environmental Investment Fund of Namibia (EIF) is accredited to access international funding earmarked for climate change adaptation.
Muteyauli said in 2017 MET signed a Memorandum of Understanding with the Development Bank of Southern Africa (DBSA) to assist Namibian-based private companies that generate revenue from projects that are fighting climate change to access funding of high amounts through means of low interest rate loans.
CFF through DBSA is tasked with financing low-carbon and climate-resilient infrastructure projects in partnership with private lenders to catalyse greater overall climate-related investment and will serve South Africa, Namibia, Lesotho and Swaziland on N.dollars 2 billion worth of projects.
He noted that MET does not promote loans for climate adaptation projects, however there are some projects that generate revenue and profit, therefore there are certain conditions for such companies to be assisted through low interest loans.
Muteyauli added that the ministry also embarked on a country document strategy and manual which will provide all activities and types of projects that are eligible for funding and the processes involved.
He said MET issues letters of no objection to projects that are aligned to the national aspirations, policies, laws and national development plans of Namibia to access funds through DBSA and the Green Climate Fund.
The roadshows aim is to disseminate information about the facility and develop a pipeline of projects for possible funding in Namibia, he noted.
At the same event, CFF member Jonathan First noted that they will focus on projects that are commercially viable but not bankable in the private sector without credit enhancement and related financial or development support.
CFF will finance clean energy projects, water projects that have climate benefits and other revenue-generating climate related projects, he added.