Despite having comparatively low emission levels, Uganda is at high-risk of the negative impacts of climate change. Average temperatures have risen by 1.3°C since 1960 and further increases of 2°C in the 50 years and 2.5°C in the next 80 years have been predicted.
Rainfall patterns are expected to become more concentrated, with fewer but heavier instances of rain, which may lead to increased instances of extreme weather events including drought and flooding. Climate change is expected to have a significant (negative) impact on Uganda’s economy, with agriculture, water, energy and transport the sectors most affected.
Management of the environment and sustainable development is enshrined in Uganda’s constitution and is a key objective within Vision 2040 – Uganda’s economic development strategy. Additionally, Uganda’s NDC and the National Climate Change Policy have been designed to guide climate change activities and ensure a coordinated approach towards a climate-resilient and low-carbon development path for sustainable development in the country.
As a low-income country, Uganda does not have sufficient resources to fund its own climate change interventions. Currently, the majority of Uganda’s climate finance is being sourced from climate funds and multi- and bi-lateral development banks and partners. Both FDI and ODA have increased in the last decade however there are still gaps across the entire finance supply chain, particularly in project identification and refinance.
Domestic capital markets in the country are developing quickly but there is still limited interest and understanding of climate-relevant sectors (such as renewable energy and agriculture). Consequently, available financial products and services do not serve the needs of all market participants (particularly small and medium sized enterprises).
Going forward, further technical assistance will be required to help build capacity of domestic financial institutions and develop appropriate instruments and asset classes.
CLIMATE FINANCE PATHFINDER – UGANDA REPORT
The Climate Finance Pathfinder Uganda report includes an analysis of the country’s climate finance landscape, including: Uganda’s climate policies; current sources and types of funding; and a number of barriers and enablers for increased levels of climate finance. Based on our analysis of these factors, the report also offers a number of recommendations for how to mobilise increased levels of funding going forward.
Funding for the report was provided by the Rockefeller Brothers Fund.