COP27: African Development Bank and OECD Development Center join forces to roll out policy toolbox for a sustainable low-carbon transition in Africa | African Development Bank

The African Development Bank and the Development Center of the Organization for Economic Co-operation and Development (OECD) are working together to roll out a new policy toolbox for a just transition to a low-carbon economy in Africa.

The two institutions launched the Equitable Framework and Financing for Extraction-Based Countries in Transition (EFFECT) on November 15 on the sidelines of COP27 in Sharm El-Sheikh, Egypt. The toolbox provides options for policymakers to chart a path towards a just, sustainable transition to a low-carbon economy in line with national development priorities.

The report is the result of an intensive and rigorous consultation process led by Nigeria and the European Union, and organized by the OECD Development Centre.

Ragnheiður Elín Árnadóttir, Director of the OECD Development Centre, said: “We look forward to working with the African Development Bank 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 their development ambitions. Governments and private investors tell us they are willing to talk; we are joining forces to spark productive dialogues that will lead to action.”

Vanessa Ushie, acting director of the African Natural Resources Management and Investment Center at the African Development Bank, said: “We welcome the collaboration with the OECD in the implementation of EFFECT in Africa. The Bank recognizes the importance of just transition paths that reflect the peculiar contexts and needs of African countries. The African natural resources sector faces serious threats and impacts from climate change. There is a need for innovative tools and partnerships that can provide the right solutions for the sustainable development of the continent.”

The two partners will focus on context-specific, tailor-made solutions to the challenges faced by African countries rich in natural resources. The next steps include: discussion between governments, industry, development finance institutions and civil society on the fairness and cross-border dimensions of the low-carbon transition; development of just transition indicators; support for the development and implementation of low carbon roadmaps and promotion of peer learning; and developing collaborative and actionable solutions for industrial decarbonisation, low-carbon value chains and future-proof infrastructure.

About the OECD Development Centre

The OECD Development Center is an independent platform for knowledge exchange and policy dialogue between Organization for Economic Co-operation and Development member countries and developing economies, enabling these countries to interact on an equal footing.