(Ecofin Agency) - On March 20, 2025, the West African Central Bank (BCEAO), through its COFEB training center, and the prestigious HEC Paris, launched the 2025 edition of their joint training program. The event kicked off with an international masterclass under the theme, "Finance and Climate: A Call to Action for Africa." The session aimed to place the climate crisis at the forefront of the continent's financial strategies.

Held online, the conference attracted hundreds of banking professionals, public policymakers, and eager students, all gathered to hear from Anne Frisch, an Associate Professor at HEC Paris, former CFO in the industry, and a renowned expert in sustainable finance.

Anne Frisch

For over an hour, Anne Frisch offered her insights into the connections between climate change and economic stability. Introduced by Balamine Diane, the Deputy Director of Teaching and Training at COFEB, the speaker first laid out the scientific foundation of climate change, highlighting the alarming rise in atmospheric CO₂ levels—from 319 parts per million (ppm) in 1958 to 425 ppm in 2024, according to the well-known Keeling curve. "At a certain level, we enter into climate imbalance, which is just one of nine natural processes threatened by human activity," she explained.

While Africa contributes minimally to global greenhouse gas emissions, the continent is on the frontlines of climate change. Its average temperature has risen by 1.4°C since the industrial era and is already facing an additional 0.3°C increase, excluding regional effects. The continent is grappling with worsening droughts, floods, deforestation, and food insecurity—challenges that hinder economic growth and threaten millions of lives.

This is where Frisch’s call to action comes into play. She emphasized that "finance today is confronted with new risks." On one hand, there are physical risks: infrastructure destruction and crop losses. On the other hand, there are transition risks: new regulations, technological disruptions, and closed markets. A notable example is Europe’s upcoming ban on internal combustion engine vehicles by 2035, which will make unprepared industries obsolete.

This moment in history is crucial for Africa’s financial sector as it faces the dual challenge of managing climate risks while promoting sustainable growth.

Climate Finance: A Disproportionate Effort

When it comes to climate finance, the scales are far from balanced. In 2022, global financial flows dedicated to climate efforts reached $1.27 trillion, with $1.15 trillion allocated for mitigation (reducing emissions) and the remainder for adaptation. However, Sub-Saharan Africa, home to 18% of the global population, received only $30 billion—just 3% of the total.

This uneven distribution is all the more unfair considering the immense needs. According to Anne Frisch, the continent requires an estimated $2.7 trillion by 2030, or about $400 billion per year, to implement Africa's National Climate Plans.

A Necessary Shift in Perspective

For Frisch, it's time for financial players to rethink their approach. "The risk-return equation must now incorporate the climate factor, or we risk seeing a wave of failed assets," she warned. But beyond the threats, she also sees opportunities: carbon credits, renewable energy, sustainable agriculture, and circular economy initiatives.

Referencing Article 2 of the Paris Agreement, she reminded the audience that financial flows must now align with a low-carbon, resilient trajectory. "This is about our shared future," she stressed. Yet, global financial flows continue to be concentrated in Western Europe and Asia. The responsibility now falls on African players—central banks, commercial banks, insurers, and asset managers—to step up. "The banking sector can drive the transition," Frisch emphasized, mentioning green bonds, blended finance instruments, and impact-driven credits.

A Program to Equip Leaders

The masterclass, chaired by Mahaman Tahir Hamani, the Director General of COFEB, also marked the official launch of the new CEMSTRAT 1 and 2 programs, presented by Professors Christine Castan and Bertrand Quelin.

• CEMSTRAT 1, designed for operational directors, offers an integrated approach to banking digitalization challenges, as well as legal, economic, and geopolitical shifts.
• CEMSTRAT 2, aimed at general managers, provides tools for strategic management, value creation, and crisis management.

Since 2013, the partnership between BCEAO-COFEB and HEC Paris has helped hundreds of African leaders enhance their managerial skills. The 2025 edition aims to go even further, equipping participants to tackle the climate challenge head-on.

The conference concluded on a note of both hope and urgency. "The best time to plant a tree was twenty years ago. The second-best time is now," Anne Frisch repeated. It was a graceful yet firm reminder to decision-makers and financiers alike: the time for observation has passed. The time for action is now.