By Innocent Obasi
The African Development Bank (AfDB) and the Organisation for Economic Co-operation and Development (OECD) have unveiled a new policy toolbox to enhance a low-carbon transition in Africa.
The two institutions, in a report titled “Equitable Framework and Finance for Extractive-based Countries in Transition (EFFECT)” said the toolbox provides policymakers options for charting out a course for a fair, sustainable transition to low-carbon energy in accordance with national development priorities.
The report was developed from an intensive and rigorous consultation process conducted by Nigeria and the European Union, hosted by the OECD Development Centre.
Commenting on the development, Ragnheiður Elín Árnadóttir, director of the OECD Development Centre, said the Centre looks forward to working with the AfDB on the implementation of EFFECT in Africa.
“We share the view that a low carbon transition is possible in fossil-fuel-producing and mineral-rich economies without compromising on their development ambitions. Governments and private investors tell us they are ready to talk; we are joining forces to convene productive dialogues that will lead to action,” he said
Vanessa Ushie, acting director of the AfDB’s African natural resources management and investment centre, commended the collaboration with the OECD on the implementation of EFFECT in Africa.
Ushie noted that AfDB recognises the importance of just transition pathways that reflect the peculiar contexts and needs of African countries.
According to her, Africa’s natural resources sector is facing severe threats and impacts from climate change, creating a need for innovative tools and partnerships that can deliver the right solutions for the continent’s sustainable development.
