The impacts of Climate change need no introduction anymore, since they have been laid bare for all to see in our daily lives. Climate change has become a threat multiplier; it amplifies the existing threats and is increasing problems for the economy, environment and society. In Zimbabwe, erratic rainfall has led to successive droughts which are one of the major impacts related to climate change amongst other impacts such as extreme weather events. Cyclone Idai (2019) has been recorded as one of the latest climate induced disaster to hit the country and the region with major impacts in Zimbabwe, Mozambique and Malawi. Recent events have almost defined what climate change is and what to expect in the future with absolute certainty.

Central to the climate change discussion is a complex issue to the discourse on climate finance. Climate finance has been such a critical issue to the United Nations Framework Convention on Climate Change (UNFCCC) to the extent that they are no agreed definitions yet on climate finance. The term climate finance has been emotionally loaded at the international convention as the globe tries to qualify the finance in reference to development assistance. Efforts from developing countries have been to ensure that climate finance is a top up to the traditional development finance rather than a replacement.  Developing countries however have no control on the current development finance as they are not bound by any global agreements, hence cannot ascertain if climate finance is truly a new finance or a reinvention of the traditional finance.

Despite all the controversy of the climate flows, there is a general consensus on what the finance should target. Climate finance comprises of financial support for mitigation and adaptation activities, including capacity building, research and development as well as issues related to decarbonisation and climate resilient development. The two generally used definitions of climate finance are from the UNFCCC standing committee on Finance that has defined climate finance as financial transactions “that aims at reducing emissions and enhancing sinks of greenhouse gases. Climate finance facilitates reduction of vulnerability and increasing the resilience of human and ecological systems to negative climate change impacts”. The IPCC Fifth Assessment Report (2014) concluded that there is no agreed definition but that the term is applied to financial resources devoted to addressing climate change globally and to the financial flows to developing countries to assist them in addressing climate change.

Zimbabwe as a signatory to the Paris Agreement (PA) is entitled to receive climate finance, which is mainly categorised as Mitigation finance and Adaptation finance. Whilst climate finance is divided into these two categories, it is part of a broader discourse on sustainable finance that deals on the provision of finance to investments taking into account environmental, social and governance considerations.

Author

  • Tawanda Muzamwese

    Tawanda Collins Muzamwese is the Editor in Chief of the Green Business Gazette Magazine. He is is an international consultant in sustainable business development with massive experience in training, consulting and auditing. He has facilitated capacity development in more than 100 enterprises drawn from over 30 countries. He is the founder of the sustainability think-tank called Toxiconsol Consultancy t/a African Sustainability Consultants. He is the Editor in Chief of the Green Business Gazette Magazine. He is a consultant and business coach with over 13 years experience. Tawanda is a Management Systems Consultant working on promoting development and implementation of ISO Standards (ISO 14001:2015, ISO 9001:2015 and ISO 45001:2018) in both developed and developing countries. With his inspirational and pragmatic writing style he has written cutting edge books including: 1) How to grow a Side-hustle into a viable business - Overcome Salary Dependency 2) The Leading Consultant: How become an authority in your professional field 3) Step-by-Step Guide to implementing Safety, Health, Environment and Quality Management Systems 4) Stepping on Higher Perspectives: Greatness Tips Motivational Series 5) Sustainability Guidebook for Boards and CEOs: Leading from the front Tawanda writes about sustainability, motivation, safety, health, environment and quality management. His books are relevant to both developed and developing countries. With practical approaches and case studies, he provides incisive insights into entrepreneurship. His philosophy is based on the premise that every human being has potential to make a significant difference in their lifetime. He writes books on taking personal responsibility for progression in life. He motivates entrepreneurs to implement income generating projects and determine their own financial destiny. He also motivates companies to take up sustainability initiatives. A start-up coach, public speaker, environmentalist, safety, health and quality management expert, Muzamwese bridges the gap between theory and practice through building capacity and sharing practical case studies in his books.

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