By Wallace Mawire
The Infrastructure Development Bank of Zimbabwe (IDBZ) is close to becoming Zimbabwe’s first accredited climate financing entity, a role which will see the institution playing a great role in providing local organisations and companies with project funding to mitigate climate change impacts.
Blessings Chiwandire, IDBZ Principal Financial Analyst (Resource Mobilisation Division), told participants at a recent Business Council for Sustainable Development Zimbabwe (BCSDZ) conference in Harare that Zimbabwe is still to register its first National Implementing Entity (NIE) with the Green Climate Fund (GCF).
Chiwandire said one of the benefits of having a National Implementing Entity will be the strengthening of the national capacity for international climate financing.
The IDBZ is a Development Finance Institution (DFI) whose core mandate is that of infrastructure development. The Bank seeks to fulfil its mandate through various interventions including providing a technical capability in project preparation and packaging, contract negotiations and implementation monitoring, mobilising resources for project development and implementation including providing Capacity Building and Knowledge Sharing. The IDBZ also values the importance of partnerships between the bank and both public and private stakeholders.
Some of the major focus areas of the institution in which it has played a part in infrastructure development in Zimbabwe include energy, water, transport, housing and the ICT sector.
According to Chiwandire, these sectors are identified as key enablers for sustainable and inclusive socio-economic development.
He added that the Green Climate Fund, which IDBZ is being accredited to, is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC) and of the Paris Agreement.
GCF was established at the 16th Conference of Parties in 2010. It seeks to promote a paradigm shift to low emission and climate resilient development. At least $10,3 billion has been pledged through the initial resource mobilisation process. According to Chiwandire, the infrastructure bank will support the Intended Nationally Determined Contribution
(INDC) target to achieve energy emissions per capita that are 33% below the projected Business As Usual (BAU) levels by 2030 and adaptation and mitigation actions based on an assessment of the country’s vulnerability to climate change ,with the ultimate goal of reducing the socio-economic impacts of climate change and Greenhouse Gas (GHG) emissions.
The IDBZ will target both mitigation and adaptation projects to reduce Greenhouse Gas emissions and increase resilience to climate change impacts in line with the vision of the National Climate Change Policy framework that pursues SDG 13 on Action to Combat Climate Change and its Impacts.
The bank will also focus on SDG seven on Affordable and Clean Energy prioritising solar power projects, hydro power projects and rehabilitation of thermal power plants and upgrading them to low emission technology. Priority will also be given to power generation from Ethanol and rehabilitation of transmission lines.
Other focal areas will include Water and Sanitation under SGD six and SGD two on Food Security and Sustainable Agriculture, prioritising dam construction, water distribution infrastructure, water and sewer treatment plants and irrigation schemes infrastructure for food security.
According to Chiwandire, IDBZ’s target is to complete the accreditation process by September 2018. The accreditation process should take six months for the completion of stages one and two but a lot will depend upon the readiness and quality of the submissions.