Systemic Sphere and ISEG bring together experts in Portugal to discuss the role of climate finance in the PALOP countries

A conference organised by Systemic Sphere, in partnership with ISEG, brought together experts to discuss the role of climate finance, Portuguese technology and carbon markets in the economic development of Portuguese-speaking African countries.

On 13 May, ISEG hosted experts from the Green Climate Fund (GCF), the Global Green Growth Institute (GGGI), Enabel of Mozambique, the World Research Institute and others, at the conference “The Role of Climate Finance to Promote Economic Development in African Countries”. The conference focused on the role of climate finance in promoting economic development in Africa, with a particular emphasis on Portuguese-speaking African countries, namely Angola, Mozambique, Guinea-Bissau and Cape Verde.

The programme featured a presentation by Adriaan Tas, Enabel’s Country Director in Mozambique, on the contribution of climate finance to Mozambique’s economic development, and by Pedro Matos Soares of Phair Earth, who discussed the role of Portuguese technology in supporting Portuguese-speaking African countries.

The conference also featured a roundtable discussion moderated by Sofia Santos, CEO of Systemic Sphere, with the participation of José Pugas, Managing Director of Finance in Motion in Brazil; Julie Abrams, an expert in climate finance and impact investing; Fenella Aouane, Managing Director & Head of Carbon Finance at GGGI; Kavita Sinha, Special Advisor to the Executive Director of the Green Climate Fund; Leslie Labruto, climate finance specialist at Resolve Fund; and Robyn McGuckin, Executive Director of P4G at the World Resources Institute.

The debate focused on developments in the climate finance landscape, highlighting the need for innovation to address the challenges faced by developing countries and climate entrepreneurs. The challenges of financing adaptation and mitigation were also discussed, exploring the specific difficulties of financing adaptation compared to mitigation, and emphasising the need for innovative approaches and blended finance - adaptation financing is more difficult to monetise, as it often generates macroeconomic benefits rather than direct cash flows, making it less attractive to commercial investors. In other words, the benefits lack clear financial returns, requiring blended finance models that combine philanthropic, concessional and market-return capital to share the risk. Examples include flood resilience projects and nature-based solutions that generate social benefits but often require public or blended finance due to a lack of direct revenue streams.

Finally, the challenges relating to carbon markets and the benefits for communities were also discussed, with participants agreeing that additionally is a complex issue and a key factor for the market’s credibility. Carbon projects must demonstrate that emissions reductions would not have occurred without the funding and that the benefits for local communities have tangible impacts.

The conference provided a strategic reflection on the potential of climate finance in Africa against a backdrop of the climate crisis, a shortage of public funding, and the need to mobilise private investment with a real impact. The debate focused on how climate finance, when combined with technology, can accelerate a path towards green, resilient and sustainable growth in the PALOP countries, making it clear that the problem is no longer a lack of money, given that billions of euros have already been invested and are available for climate finance. The challenge is to structure them.

For Sofia Santos, CEO of Systemic Sphere, “With a constructive approach, this meeting highlighted that, for countries in the Global South, national sustainable finance strategies aligned with the Paris Agreement are essential for attracting international funding and strengthening economic resilience, establishing climate finance as a genuine lever for long-term development. And it is this message I would like to leave you with: that it is important to recognise the good examples that continue to exist.”

By promoting this debate, Systemic Sphere and ISEG seek to contribute to a cooperation agenda more closely aligned with current climate, economic and social challenges, reinforcing the importance of solutions that bring together capital, knowledge, technology and impact.