Climate Financing Strategy approved

Maputo, 17 Sep (AIM) – The Mozambican government has approved the country’s National Climate Financing Strategy for the 2025-2034 period, which is aimed at promoting a low-carbon and climate-resilient economy.

The plan is budgeted at 37.2 billion US dollars. According to the government spokesperson and Minister of State Administration, Inocêncio Impissa, who was speaking on Tuesday after a meeting of the Council of Ministers (cabinet), the country needs to mobilize internal and external resources, as well as strengthen public and private institutions so that they may respond to climate actions.

“Mozambique must mobilize and apply investment for climate action, targeting different sectors to increase financial resources and ensure transparency and efficiency in the allocation of resources for climate action”, he said.

He explained that the objectives of the strategy are also focused on defining a clear model of inclusive governance and a coordination mechanism for access to climate finance, “prioritizing women, youth, children, and vulnerable groups.”

“We must strengthen access to carbon markets through the adoption of specific regulations, strengthening institutions and the emissions monitoring, recording, and verification subsystem”, he said.

The plan, Impissa added, is also aimed at developing and testing finance instruments in strategic sectors and mapping and structuring debt-for-climate action swap initiatives.

Mozambique is among the 10 countries most vulnerable to climate change, being cyclically exposed to cyclones, droughts, and floods with severe economic and social impacts.

Also on Tuesday, the government approved the Economic Recovery and Growth Plan (PRECE) budgeted at 2.75 billion dollars.

Impissa claimed that “the effective implementation of the PRECE will help restore the business environment and confidence in the country, as well as accelerate economic recovery, which will create a favorable environment for investment”.

He believes that the plan will generate jobs and promote sustainable growth in the medium and long term.

The plan envisages the injection of capital through funds to support the economy, through specific lines of financing and the boosting of the public financial institutions.

In the first phase, 800 million dollars will be made available to stimulate enterprises, particularly small and medium ones, with priority given to job creation, agricultural modernisation, industrial expansion and support for business initiatives of young people.

Impissa said that PRECE should act as a catalyst for economic recovery from recent crises, including the Covid-19 pandemic, the Russian war against Ukraine, and the volatility of international prices.
(AIM)
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