Estimated climate finance need over 2020-30 is $24.4 billion (TND 75 billion), with adaptation costs estimated at $4.2 billion, mitigation costs at $14.4 billion, and losses and damages at $5.0 billion, the African Development Bank (AfDB) said in its African Economic Outlook 2023.
There is a promising range of options for engaging the private sector: capital markets (green bonds and the carbon market), outcome-based financing that can be used as a catalyst for mixed (public-private) financing instruments, Islamic financing, and expatriate-friendly financial products designed to turn remittances into green investment, the bank added.
But private sector participation in climate finance has barely gotten off the ground. Barriers include a lack of transparency surrounding the profitability of green projects, difficulties evaluating and pricing risks, investment horizons that can be extremely long, and challenges in quantifying profits.
“New regulatory frameworks and government incentives will be key to channeling private finance into green growth,” the document reads.
Tunisia’s 1,300 kilometer coastline supports over two-thirds of the country’s 12 million inhabitants. Natural capital has enormous potential for various forms of green energy, from solar and wind power to ecotourism and organic farming. The country also has large and, for the most part, underexploited phosphate and hydrocarbon deposits.
Source: Agence Tunis Afrique Presse