National Framework to Mobilize Climate Action Funding

Algeria is implementing a national framework for climate finance and carbon markets, a key initiative unveiled by Prime Minister Sifi Gharib during a national workshop held in Algiers on November 3-4. This framework aims to mobilize essential financial resources for climate action and support sustainable economic development. The Prime Minister affirmed Algeria's commitment to reducing greenhouse gas emissions by 14% by 2035, with the potential to increase this target to 31% if adequate international support is secured. This commitment is part of a broader strategic vision that balances national development requirements with environmental responsibilities.

The country has already integrated climate change considerations into its 2020 constitution and approved a national green hydrogen strategy in 2023. Furthermore, an updated Nationally Determined Contribution (NDC) was submitted to the United Nations Framework Convention on Climate Change secretariat in August. National efforts in the energy transition sector are actively supported by entities such as Sonatrach and Sonelgaz, which are engaged in developing solar energy, reducing routine gas flaring, and working towards achieving zero methane emissions by 2030. These initiatives also encompass promoting energy efficiency and advancing carbon capture technologies.

Looking ahead, the new framework seeks to bolster the participation of the national private sector, attract both national and foreign investments, and foster an environment conducive for banks and financial institutions to contribute to climate projects. It also prioritizes developing national capacities for measuring, reporting, and verifying greenhouse gas emissions. Internationally, Algeria advocates for strengthening global financing mechanisms, including the Green Climate Fund, through simplified access procedures, expanded grants, concessional financing, and necessary investment guarantees. The ultimate goal is to ensure that climate strategies translate into tangible projects, delivering real economic value while simultaneously safeguarding energy security and national economic stability.