Minister Arkab Outlines National Climate Finance Strategy

Algeria is moving towards developing an integrated national strategy for governance in climate finance and carbon markets. This strategic effort is designed to mobilize financial resources, attract investments, and support the nation's transition towards a diversified and sustainable economy. Minister of Energy and Hydrocarbons, Mohamed Arkab, emphasized that these mechanisms are crucial for boosting national development, stimulating investment, and enhancing the competitiveness of institutions. He highlighted the necessity of moving from climate commitments to implementing practical projects that yield tangible economic and social results, noting Algeria's opportunity to establish a clear, stable, and credible national framework.

This framework, Arkab explained, will be founded on effective governance and cross-sectoral coordination, attracting essential funding, expertise, and technologies while safeguarding Algeria's economic and energy sovereignty. The forthcoming strategy is expected to focus on mobilizing financial resources, strengthening legal and institutional frameworks, and developing mechanisms for measurement, reporting, and verification, in addition to organizing carbon markets and fostering national capabilities. Minister of Environment and Quality of Life, Kaouther Krikou, confirmed her sector's commitment to supporting the national strategy's preparation, ensuring environmental considerations are integrated into development projects. This aligns with Algeria's National Climate Change Adaptation Plan for 2035 and its deposited Nationally Determined Contribution (NDC), which aims to reduce greenhouse gas emissions by 14%, with potential to increase to 31% given adequate international support.

Leading national companies like Sonelgaz and Sonatrach are actively contributing to these environmental and economic objectives. Sonelgaz, under CEO Nabil Kafi, is advancing clean energy initiatives, including the development of solar power plants and the modernization of infrastructure to reduce emissions, transitioning towards leveraging international climate finance. Sonatrach, led by CEO Nourredine Daoudi, continues its climate strategy to minimize its carbon footprint through energy efficiency, renewable energy integration, and a significant reforestation program. Outcomes from national workshops on climate finance underscored the importance of legislative reforms, digitalizing emission reporting, and establishing a national green classification for projects, alongside diversifying funding sources to guide investments towards climate priorities and enhance national economic competitiveness.