Overseas Development Institute on how to drive green recovery in developing countries

The Overseas Development Institute recently released a report highlighting the precarious decisions developing countries are facing as they navigate through the economic fallout caused by the COVID-19 pandemic while also addressing the urgent need for climate action. With a focus on green recovery, the report sheds light on the role that China is playing in supporting developing countries, particularly in Africa. Yue Cao, Senior Research Officer at ODI's Global Risks and Resilience Programme, discussed the findings of the report in an interview with CNBC Africa. Cao emphasized the importance of green recovery elements in COVID-19 rescue packages and highlighted the key roles China can play in facilitating this transition. One of the key points raised in the report is the limited inclusion of green recovery elements in COVID-19 rescue packages in developing countries, despite the expressed ambitions in national policies. Cao highlighted the opportunity for China to enhance its role as a development and trade partner in these countries. Specifically, in Kenya, China's role as a financier in debt management and negotiations was underscored, with room for further collaboration and negotiations beyond the repayment suspension already agreed upon. Furthermore, Cao pointed out that China can also act as a technology provider, leveraging its advancements in green technologies and markets to foster trade in these goods. The report suggests that increasing cooperation in sectors like agriculture could not only aid in development but also contribute to meeting climate targets. In discussing the perceptions versus the reality of China's involvement in developing countries, Cao noted that there is significant room for improvement and increased engagement. Despite past instances where projects under initiatives like the Belt and Road Initiative did not yield desired outcomes, Cao highlighted the importance of constructive engagement with China to ensure a positive role in green recovery efforts. When it comes to Africa's green recovery, the report focused on Kenya as a case study. One of the main challenges identified was the lack of preparation and time to align the country's rescue and recovery packages with climate considerations due to the rapid onset of the pandemic. Cao emphasized the need for a more strategic allocation of funds to build back better and prioritize green recovery efforts. Overall, the report underscores the critical need for collaboration between China and developing countries, especially in Africa, to drive sustainable and environmentally friendly recovery efforts. By leveraging China's financial, technological, and economic capabilities, developing nations like Kenya can pave the way for a greener future in the post-pandemic era.