Scenes from SIDS4 Side Event: Cabo Verde’s INFF experience

H.E. Mr. Alcindo Mota, Secretary of State for Finance, Cabo Verde joined the 4th Small Island Developing States (SIDS4) Conference Side Event: Unlocking NDC Finance in SIDS through Integrated National Financing Frameworks that was held in St. Johns, Antigua and Barbuda on Wednesday 29 May 2024. 

Mr. Mota stressed the critical role of their INFF in addressing the financial challenges of achieving its NDC targets. The government aims to enhance domestic resource mobilization, attract private sector investment through incentives, and leverage international climate finance by building strategic partnerships. Their INFF will align diverse financial sources with national development priorities, fostering regional cooperation, stakeholder engagement, and capacity building to ensure that climate ambitions translate into tangible, sustainable outcomes.  

The full transcript of the speech is attached below: 

Ladies and gentlemen, distinguished guests,

Good morning to all.

We confront one of the most pressing challenges of our time; Climate Change. As leaders of small island developing states, we are absolutely aware of the existential threats being posed to our homes, our economies, and our way of life. However, we are also aware of our potential to be at the forefront of global climate action. To realize this potential, we must unlock the financial resources necessary to implement our nationally-determined contribution and this is through the Integrated National Financing Frameworks (INFFs) The NDCs established under the Paris Agreement represent our commitment to reduce greenhouse gas emissions and adapt to the impact of climate change.  

For SIDS these commitments are not just environmental imperatives, but lifelines. However, the path to achieving our NDCs is fought with financial challenges. The traditional funding serves often fall short, and access to climate finance can be complex. The INFF offers a strategy solution source. It aligns diverse financial sources, public, private, domestic, and international, with our national development priorities, including our climate goals. 

Today, I will outline our vision for leveraging INFFs to unlock NDC financing incentives, ensuring that our climate ambition translate the intangible actions and sustainable outcomes. I will talk about six dimensions of this subject.  

First is mobilizing domestic research. We must enhance our capacity to mobilize domestic research. This involves strengthening our tax systems, improving public financial management, and curving illicit financial flows. 

By increasing efficiency and transparency in our financial system, we can generate more revenue internally. Additionally, we should explore innovative financial mechanisms such as the green bonds and the green tax which can direct forms towards climate-realised project.  

Second is the attractive private sector investment. The private sector plays a crucial role in driving sustainment and development. We must create an enabling environment that attracts provides an investment in the green projects. This can be achieved by offering incentives such as tax breaks, risk warranties, and public-private partnerships. 

Furthermore, establishing clear regulatory frameworks and showcasing successful climate project can build investor quotients and stimulate future investing. The sources leverage international climate and finance. Accessing international climate services is essential for SIDS to meet their NDC target. We need to strengthen our capacity to develop and comply a project proposal to international donors and financial institutions, build a strategic partnership with lead development banks, climate fund can enhance our access to brands, possession of loans, and technical assistance. Therefore, it's enhancing regional cooperation. It's integration of climate goals into national planning. And the SIDS, it's engaging stakeholders and building capacity. 

Successful implementers of our climate strategy requires the active participation of the all stakeholders, including the local community, civil society, and academia. We must foster the inclusive dialogue and build the capacity of our institution and people. Training and capacity building programs can enhance our ability to design, implement, and monitor climate project effectively. Unlocking NDC finance, through integrated national finance framework is not just an opportunity, it is a necessity. 

It is a call to action for us to harness our collective resources, innovate our financial system, and build a resilient and sustainable future for our islands. By aligning the financial strategy with our climate goals, we can ensure that our commitments under the Paris Agreement are not just inspirational but achievable. Let us embrace this challenge with determination and unity. Together, we can turn our climate ambition into reality, securing a sustainable and prosperous future for our people and our country. 

Thank You.