Environmental Economists from Makerere University and stakeholders in environment and natural resources sectors have expressed the need for Uganda to establish a Green Fund to finance green initiatives.

The dons have also proposed and re-echoed known initiatives that require mind-set change and government commitment to infrastructural developments that can reduce environmental pollution.

Environmentalists also want part of the Green Fund to come from greatest polluters in the country and the developed countries relative to the damage caused.

In addition, they want the African voice heard in the global discussion towards mitigation, commitment and transitioning to low carbon economies.

The call was made during the policy dialogue organised by the Environment for Development Initiative (EfD-Mak Centre) at the Kampala Sheraton Hotel as one of the mainstream activities. The dialogue held on December 20, 2023 brought together members of the academia, representatives of private sector, government ministries, departments and agencies, CSOs, manufacturers, and commercial banks on the theme, “Green Financing in Uganda: From Paper to Practice”.

The main aim of the workshop was to engage with the government to have a healthy debate how to finance green transitions and greening starting from the household level. The key message was that there is need to transit, but the transition is not cheap, it is expensive and requires deliberate effort.

While opening the workshop, the Principal, College of Business and Management Sciences Assoc. Prof. Eria Hisali said the engagement was hinged on twin objectives of attaining low carbon outcomes and high growth outcomes which are environmentally friendly.

As researchers and policy makers, Prof. Hisali interested participants to discuss and understand the current growth landscape, where growth is coming from, and main activities that drive growth and livelihoods.

Within that landscape, the professor advised participants to address the main concerns with regard to sustainability, the environmental concerns with regard to the current sources of growth and the status quo.

Hisali also told participants to pose a question of the disruptive effects that come along with  the transitions to low carbon sources of growth; and closely related, the best options to make the transitions and finally, how the green financing strategies can be made attractive for the different actors to take them on.

Outside the green financing alone, Prof. Hisali challenged participants to debate on other options that policy makers can consider to enable the transition to low carbon sources of growth to start taking place.

The Professor also guided participants to have discussions on the framework for enforcement and auditing of the transition process itself, asking, what is it that they can do to ensure that they are tracking the progress made and whatever has been agreed upon at policy level, and ensure it is enforceable and that there are institutions and agencies to enforce that.

“The other issues we should be discussing is that what is our voice as Uganda and as the developing world in these discussions towards a low carbon economy. Do we have the voice as anyone else? Or is it that for us we should be making the transition while others are not, where is the equaliser. Are we in future for example going to talk about green imports or it is about us only ensuring that we go green and possibly some powerful nations look on and go to the extent of lip service”. Hisali asked.

In an interview, Prof. Hisali said, the discussion of the African voice in mitigation carbon emissions has picked traction at the global- level questioning whether all countries of the world have the same voice and commitment to addressing matters of environmental sustainability.

“This discussion is important because the transition to low carbon economies come with certain disruptions the way things are done and those disruptions are a cost. They disrupt livelihoods, slow growth and the only way we can be committed to that transition, is when we are sure that it is not only us but that everyone else has the same commitment. We all belong to the planet and we should have the same level of commitment,” Hisali stressed.

The Director EfD-Mak Centre Prof. Edward Bbaale noted that although there are  more than one SDGs  focused on the environment and green financing, many countries are not living up to the set aspiration of the SDG. Bbaale is also the Director, Directorate of Research and Graduate Training at Makerere University.

As a university, Prof. Bbaale said, they must undertake research and establish to what extent the country has achieved green energy transitions and inform government where the country is, and what should be done. Through research Bbaale said the university has done a lot to  come up with innovations as solutions to the green transitions such as solar energy solutions and others.

Bbaale reported that the EfD-Mak  Centre is  focusing on environment and natural resources, on how to harness and manage the environment for sustainable development, satisfying the needs of the present generation without compromising the needs and the benefits of the future generation.

As the Environment for Development initiative, Bbaale said, the topic of green financing is based on the fact that the environment has been the most affected resources through deforestation, reclaiming of wetlands, and most of these have come partly through agriculture where forests have been cut unsustainably and for infrastructural developments.

Bbaale warned that most of these developments have taken place without minding about the environment adding that unlike human beings who forgive and forget, nature does not.

“Nature does not forgive and nature does not forget. Actually, at one-time nature will hit back badly. You have seen in Kampala during this season, in the last three months, floods swallowing up people, our fellow human beings dying, cars being swallowed up in a place where you least expect that you are going to meet your death.

We have seen that one being caused by the environment hitting back. Maybe because that very area was a wetland, but during the construction of the house or the building or the road, this was not catered for.” The Director decried.

It is time to protect the environment through mindset change, best practices and investment in green initiatives

Prof. Edward bbaale

Prof. Bbaale stressed that it is now time to talk about protecting the environment against greenhouse gases and, one sure way, apart from mindset change and preaching to the population on the best ways of life, one other way, is through investment.

 He observed that almost 85% of Uganda’s households depend on biomass for cooking, mainly firewood and charcoal. He said, it is dangerous and leads to deforestation,  pollution and  respiratory diseases. The alternatives he said, can come through, for example, using LPG and electricity which are very expensive and require subsidies to make sure that an average household can afford consistently.

Bbaale called  for mindset change among the citizenry  and re-orientation of the country’s infrastructure to  allow citizens ride bicycles to short distance workplaces to reduce on  use of vehicles and pollution.

“You do not need to board a vehicle if you are coming from 1.5 kilometers away. A bicycle can do that, even 20 kilometers away. But now we need to establish the infrastructure for that. Have lanes that are for bicycles alone. And when you’re riding your bicycle, you are very safe. You will not meet your death because of riding a bicycle.

I’ve interacted with the professors elsewhere in the developed world, and the head of the university, the president of the university rides a bicycle to work. But these people are safe. So the question is, are you safe when you ride a bicycle to go to your place of work? But now, for us to re-orient, we require financing. And also how would you ensure that most of us will be riding electric motorcycles which don’t emit any gases?”. Bbaale said.

The don also welcomed the move to the manufacture and use of electric vehicles.

“Okay, how can we, all of us, ensure that we shall at one time be driving electric cars which  require that they are charged to make sure that you have enough current that will take you to Mbarara. This means that as you drive to Mbarara, somewhere, there must be a point where you go and refill your current as you drive an electric car.

 But now, government investment requires that the planning,  programming  and the budgetary processes  are in view or in perspective of the need to finance these green investments.”, He added

The Director explained that some of the issues might require doing adaptation, and so  need adaptation finance while some of the issues would require to finance the disaster, because,for example, the floods bring disasters, landslides and all of these. And so it requires that there is a fund for disasters that happen because people suffer through climate shocks.

Part of the Green Fund should come from the greatest polluters in the country and the Developed countries

prof. edward bbaale

Prof. Bbaale also noted that Neither Uganda as a country, nor Africa as a continent of Africa,  is not  solely responsible for climate issues  faced.

“…Because our colleagues in the north that are already developed, America, Europe and all that, during the industrial revolution released a lot of greenhouse gases into the environment. And that’s why actually negotiations are going on that the developed countries that actually polluted the environment in the first place should pay.

So, part of the fund that I’m talking about should come from the developed countries. Part of the fund should come from China, Europe and, part of the fund must come from the United States”, Bbaale asserted.

Bbaale added that greatest polluters in the country must pay correctly for what they have damaged.

“We must map and know globally who are the greatest contributors to the climate fund. The same applies to Uganda. We have had the debates. Who are the greatest polluters? If you are running an industry and you are releasing waste products into Lake Victoria, you must pay so that government can use the money you have paid to correct what you have damaged.

 …even if you were just releasing, because of your industrial activity greenhouse gases into the atmosphere, government should be in a position to compute the extent of damage you are causing and therefore you, the private investor, be able to pay for that. And so, government requires to finance activities that constitute green transitions”, Bbaale advised.

He said transiting into a green environment has two phases. Number one, is mindset change that is, what we do as human beings, and it also has to do with the real costs which is not cheap.

EfD-Mak Policy Engagement Specialist for Inclusive Green Economy (IGE) Program  Dr. Peter Babyenda said, as a country, continent and globe, there is a lot on paper, but practice is lacking.

Babyenda expressed the need to involve everybody starting from the public, the academia, media, manufacturers and commercial banks among others.

“We have realized that whenever we are coming up with these policies, more so, to do with banking, the commercial banks which deal with the person are not part of the negotiations yet there is no local person who goes directly to the central bank. So we need to involve banks right away from planning to implementation”, He said.

Babyenda also said, there is need to invest in mindset change and be able to raise funds locally as a country.

“We cannot plan for green financing where 80% of the budget is from the donors So, we need to mobilise the funds locally through contributions from emitting manufacturers, people in Agriculture and fossil fuels,” He said

Babyenda also said there is need to define the products clearly starting where the green financing will go for instance investments in tree planting, subsidizing environmentally friendly technologies including the cooking among others.

Jane Anyango is the Communication Officer EfD Uganda