(Ecofin Agency) - The country, which is hit hard by climate change, plans to raise at least $4 billion in the domestic market and the balance from foreign donors and private investors.

From 2021 to 2030, Uganda needs $28.1 billion to finance its climate projects, the Ministry of Finance said in a paper published earlier today.  

The funds are needed “to finance adaptation and mitigation activities in energy, forestry, and agriculture among others prioritized in the updated Nationally Determined Contributions (NDC),” the paper stresses. 

Kampala plans to raise 15% or $4 billion of that envelope domestically and mobilize the rest from foreign donors and private investors.

“Globally, climate finance mobilization through public sources is proving futile with most of the financing being provided in the forms of loans than grants,”  the Finance Ministry said stressing the need for “deliberate efforts to effectively engage the private sector."

Uganda is targeting a 25 percent reduction in greenhouse gas emissions by 2030, which corresponds to an absolute reduction of 36.75 million tons of CO2 equivalent (MtCO2e). This landlocked East African country with a tropical climate is increasingly experiencing extreme weather events such as devastating floods, landslides, and longer periods of drought.