Climate Change

Africa's economic future hinges on its ability to navigate climate-related risks while mobilizing finance to build resilient economies. This lecture will explore the interlink of climate risks, financial regulation, and sustainable finance, drawing on insights from my advisory work with central banks, financial institutions, and UN agencies, and from my teaching roles at University of Cape Town and Strathmore Business School. The lecture will examine how climate risks affect macroeconomic shocks and explore Africa's evolving climate-related regulatory landscape, including prudential frameworks and disclosure requirements. We will explore recent developments, including new reporting standards, innovative finance products, carbon market regulations, and green finance taxonomies. Through practical examples from my engagements with industry alliances such as the Kenya Bankers Association, Alliance for Financial Inclusion (AFI), and Glasgow Financial Alliance for Net Zero (GFANZ), the lecture will demonstrate how climate risk challenges and financial opportunities will shape Africa's development trajectory. At the end of the lecture, participants will gain a clearer understanding of the critical links between climate risk management, financial innovations, regulatory developments, and the continent's development goals.

In July, the Inter-American Court of Human Rights released its Advisory Opinion on Climate Emergency and Human Rights. The findings of the Court establish a clear path on how states must address climate change under a human rights and environmental perspective. The purpose of this post is to assess the main environmental breakthroughs of this Advisory Opinion as well as the business & human rights assessment the Court does on this matter.

Creditors’ motivations appear to be mixed. While reputational benefits and international commitments are primary drivers, more pragmatic interests, such asthe opportunity to redeem discounted loans above market rates, also play a role. Asignificant finding is that most respondents feel their countries lack agency in DNS operations. The survey also indicates skepticism about DNS’s effectiveness inreducing sovereign debt, although respondents acknowledge its potential foraddressing environmental challenges. Transparency emerges as a major concern. Respondents consistently describe DNS transactions as opaque or minimally transparent, with local communities rarely, if ever, involved in the process. While DNS is not widely endorsed as either a preferred debt restructuring tool or climate finance mechanism, respondents do recognize its limited but meaningful role, particularly in environmental initiatives.

In this quarterly report, I argue that the climate crisis has provided theglobal finance industry an opportunity to make exorbitant profits frommajority Black and Brown countries in the Global South. I show how theglobal finance industry is leveraging its muscle over climate-vulnerable andheavily indebted countries in the Global South through complex financialtransactions.

Join us for the launch of Afronomicslaw’s latest quarterly report, "The Limits of Carbon Markets as a Solution to the Climate Crisis" by James Thuo Gathii. This report critically examines the role of global finance in commodifying biodiversity assets and its implications for climate justice and sovereign debt in the Global South. The session will include an author presentation and a Q&A session.

In this analysis, migration and its relation with climate change and development are examined through Sen's (1999) capabilities framework for human mobility. Migration is a people-centric activity where one may want to reside in or relocate to a desired area. Discussions around the connection between climate change and migration are growing in academic and governance contexts. Scholars are increasingly recognising migration's role as a strategy for adaptation and development. The International Organisation for Migration (IOM) suggests that there is no direct relation between climate changes and migration decisions. Viewing migration as merely adaptation can understate the varied causes of forced migration, which include sociology, economics, politics, and ecology. Addressing climate migration effectively requires considering political and economic processes and their interrelations.

The African Sovereign Debt Justice Network, (AfSDJN), is a coalition of citizens, scholars, civil society actors and church groups committed to exposing the adverse impact of unsustainable levels of African sovereign debt on the lives of ordinary citizens. Convened by Afronomicslaw.org with the support of Open Society for Southern Africa, (OSISA), the AfSDJN's activities are tailored around addressing the threats that sovereign debt poses for economic development, social cohesion and human rights in Africa. It advocates for debt cancellation, rescheduling and restructuring as well as increasing the accountability and responsibility of lenders and African governments about how sovereign debt is procured, spent and repaid.

In recent times, developing countries are faced with a challenging task of balancing their commitment under various international instruments such as the Paris Agreement to achieve a Just Energy Transition and their pertinent need for industr1ialization and development. At the center of this contention is the knowledge that resources are scarce and must be allocated judiciously towards desired goals. The existing scarce resources are further plundered through illicit financial flows because of ineffective systems in developing countries. This paper examines the idea of a Just Transition through the lens of developing countries like African countries whose contribution to global greenhouse gas emissions have been minimal. The paper highlights access to finance as a key component of an expedient Just Transition and highlights illicit financial flow as a threat to the realization of the Just Energy Transition among other pre-existing structural challenges. This paper calls on developing countries to tighten their ship in retaining capital and limiting the illicit exportation capital towards realizing the Just Energy Transition.