Background:

Africa has a surge in green innovators/entrepreneurs contributing to climate action and local impact. However, the global climate finance allocation agenda often overlooks their inclusion. This, coupled with stringent financial requirements, spells a need for accessible climate finance mechanisms responsive to their needs as African entrepreneurs.

COP 28 called for adequate funding for climate action, especially in regions such as Africa. Despite the increase in specialised donor programs for youth and women innovators, the need for their inclusion within the climate finance allocation agenda is often overlooked. Furthermore, innovators without a specific sector focus often struggle to demonstrate their evidence and showcase eligibility for positive climate contribution.

Additionally, informal entrepreneurs often lack established relationships with banks or other financial institutions, which are most often intermediaries for climate funds in developing nations. A clear pathway and approaches are needed for the recognition and financial inclusion of these formal and informal youth and women-led green innovators or entrepreneurs through innovative financing mechanisms. However, in practice, this is easier said than done. 

Objectives:

This side event will focus on sharing and showcasing the existing challenges, gaps, and best practices for effectively accessing climate-oriented funding for green innovators and entrepreneurs.

The session will consist of a panel discussion and open questions from the audience with an aim for collaborative opportunities to accelerate the development of green start-ups on the African continent in alignment with the Aspirations of the AU Agenda 2063 and for the achievement of the SDG agenda and the Paris Agreement.

Key takeaways:

• Greenovations Africa is an initiative aimed at fostering green entrepreneurship across the continent, particularly focusing on empowering women and youth. The project has several key outcomes and impacts that are shaping the landscape of sustainable innovation in Africa.
• Greenovations Africa has successfully supported over 30 green innovators, with more than 50% being women. This initiative provides seed funding, mentorship, and access to resources necessary for business growth and sustainability.
• The program offers substantial financial backing, including $100,000 in seed funds distributed among selected projects. Each successful applicant receives approximately €3,300 to help bring their innovative solutions to market readiness.
• The project targets five critical sectors: smart agriculture, renewable energy, climate action, water management, and waste management. These sectors are pivotal for addressing environmental challenges and promoting sustainable practices across the continent.
• The Greenovations Africa Phase 2 initiative aims to enhance the capacity of green innovators and entrepreneurs across the continent by bridging the gap between climate finance and sustainable innovation. This program builds on the success of its predecessor, focusing on fostering green solutions that contribute to climate resilience and economic development in Africa.
• Linking innovations to climate action involves a multi-faceted approach that combines technological advancements with strategic policy frameworks and collaborative efforts. By harnessing the potential of innovative solutions across various sectors—from energy to urban planning and agriculture—we can effectively address the challenges posed by climate change and work towards a sustainable future. 
• The RCC and partners collaborating on the project provide guidance, tools, knowledge and networks to innovators on how mechanisms under the Paris Agreement (Article 6) work, as well as the ecosystem ecosystem that supports green entrepreneurship such as GCF, IFC, UNEP, ANDE, and OECD.

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Credit: UN Climate Change

Credit: UN Climate Change

Credit: UN Climate Change