Mozambique

In 2012, Mozambique launched the Green Economy Roadmap, setting out its green growth strategy with the objective of integrating natural resource planning into national economic planning processes. With support from the Green Growth Global Institute, the government prepared and adopted a Green Economy Action Plan for 2013/2014. Both documents served to integrate green economy objectives into the long-term National Development Strategy 2015-2035 - though referenced only generally.

Mozambiques National Strategy on Climate Change Adaptation and Mitigation 2013-2025 (ENAMMC) makes stronger commitments towards green and low carbon development, identifying key areas and actions for progress. However, while drafting the National Climate Change Monitoring and Assessment System the government recognised the ENAMMCs shortcomings in terms of setting specific, measurable and actionable targets, and the need to improve monitoring for successful implementation. A proposal was approved by the Cabinet in 2014 to address this, but was not operationalised. In 2019, GGGI in partnership with Mozambiques Ministry of Land, Environment and Rural Development reviewed and updated the Green Economy Action Plan for 2020-2024, taking stock of progress and setting out indicators which could be used to track green growth. While innovative, the plan has not been formally approved by government and is not widely available online.

Mozambique has established some limited, ad-hoc consultation processes to engage with civil society and private sector stakeholders during policymaking. According to the VNR 2020 "in the context of planning, budgeting, implementation, monitoring and evaluation of public policies, there are established mechanisms to engage the different national and international players at all levels"- but these are generally constrained to small groups or private commitees.

In terms of inclusion, Mozambique has made some progress in supporting the participation of women in decision-making, establishing a National Gender Policy and Strategy which highlights best practices for the private sector to ensure greater employment opportunities for women, such as through adoption of positive discrimination policies and quotas for women at management level. Mozambique has also adopted a gender quota to increase positions for women in government and seats held by women in parliament. However, the country falls short on employee involvement and inclusion in corporate governance, with no policies or guidance available for the private sector at present.

In 2019, the central focus of Mozambiques Economic and Social Forum (one of the countrys largest business events) was on how to realise the SDGs for accelerated, inclusive and sustainable economic growth. Later that year, a survey was carried out to assess the contribution of the private sector to the SDGs, understand ongoing challenges and raise awareness over their importance for sustainable, fair and equitable development. Despite these steps, government-led initiatives supporting further private sector engagement with the SDGs have been limited, with best-practice guides still outstanding. However, internationally-funded initiatives, such as the EUs Climate Launchpad, have led to the initial establishment of some more sustainably-oriented business platforms.

No development of wealth accounts, but in the very early stages of developing natural capital accounts. The country has reviewed some pilot natural capital estimates, for example conducting an ecological-economic assessment of mangrove ecosystem services. The exercise showed that the combined direct and indirect use of mangroves in the Zambezi Delta to be over USD$1 million annually. In general, Mozambique is still in the preliminary stage of research and data gathering measuring its natural resources via annual National Forest Inventories and wetlands mapping programmes.

In a chapter on coordination and execution, the Green Economy Action Plan 2020-2024 states the need for the Ministry of Finance to design and execute fiscal policies and instruments for the green economy - though no concrete actions are proposed. At present the government does not seem to be engaging in any discussions or proposals for green financial reform. An earlier 2015 Fiscal Policy Scoping Study commissioned by UNEP set out some specific recommendations, noting the necessity of reform in creating much needed fiscal space to meet the countrys green economy goals.

Mozambique does not have any established processes for reviewing the environmental sustainability of its fiscal and monetary policies. A 2015 Fiscal Policy Scoping Study commissioned by UNEP provided some initial recommendations, and Mozambiques 2020 VNR anticipated expected interventions in this area, but no further developments have been identified. The country has endorsed the Friends of Fossil Fuel Subsidy Reform group, calling for accelerated action in the phase out of harmful subsidies.

Basic, ad-hoc stress testing of Mozambiques financial sector has been undertaken with the support and guidance of the IMF. However, it is unclear whether the Bank of Mozambique has adopted a regular stress testing framework. The government has established a legal obligation for enhanced transparency of the banking sector, and independently some banks have adopted green financial products and services though there is no green taxonomy or agreed framework verifying such claims.

Mozambique does not have a domestic tax or trading scheme in place for pricing carbon, and its NDC does not reference any such proposals. However, the country participates in international carbon offsetting, having signed Emissions Reduction Purchase Agreements with the World Bank and Forest Carbon Partnership Authority for mitigation in the forestry sector (REDD+). These agreements are worth in excess of USD$50 million, with the goal of mitigating 10 million tons of C02 emissions by 2024.

Mozambique does not have a clear approach to green economy planning across key economic sectors. The National Development Strategy does not set out an overarching approach to green growth, and the countrys other climate policies and strategies (for example, the Biomass Energy Strategy, REDD+ Strategy Action Plan and the Strategic Plan for Agricultural Development) are less comprehensive. The National Climate Change Adaptation and Mitigation Strategy 2013-2025 gives consideration to multiple sectors spanning agriculture, fisheries and energy, but the government has noted its significant shortcomings in terms of actionable commitments, coordination and monitoring.

Although the government gives some support to SMEs in general, there are very few initiatives which aim to foster greener and more sustainable businesses or business models. In partnership with the ILO and international funders, the government is implementing a project known as MozTrabalha which aims to promote decent and sustainable jobs and economic inclusion. The project includes implementation of employment-intensive market infrastructure investments, the stimulation of green jobs through SME development and increased employment opportunities for women. Other internationally-led and funded initiatives include a 5-year nationwide programme known as BRILHO, which aims to catalyse the off-grid market in Mozambique, promoting and supporting small business initiatives that can provide clean and affordable energy solutions with a competitive and sustainable approach.

No carbon budgets are in place or under development at present.

In 2011, the government adopted its Strategy for New and Renewable Energy Development 2011-2025 with the aim of increased nationwide development of renewable sources of electricity. Since its publication, the country has actively pursued energy sector reform, paving the way for the emergence of several independent power producers. Actions to simplify regulatory barriers and encourage private investment included launching a fund to support rural electrification projects, creating a Renewable Energy Auctions Programme (known as PROLER) and revising legal frameworks, such as its outdated Electricity Law.

More recently, the government set a goal of reaching universal energy access by 2030 under the Energy for All programme of its 2018 National Electrification Strategy. During the COP26 World Leaders Summit, the Mozambican Prime Minister pledged that 62% of the countrys energy mix will be generated by renewable energy by 2030. While a solid target, a corresponding strategy or plan to meet it remains outstanding.

One of the priority actions under the third pillar Strengthening Resilience and Adaptation Capacity of Mozambiques revised 2019 Green Economy Action Plan is to establish mechanisms for creating green jobs in municipalities, including recycling, and maintenance of public infrastructure, among others though no specific initiatives are proposed. The recently approved National Employment Policy Implementation Plan 2021-2024 demonstrates greater ambition, emphasising the importance of the informal economy, the promotion of entrepreneurship, green jobs creation and youth inclusion. However, implementation so far is limited by financial constraints - with the International Labour Organisation providing funding for aspects of the plan through individual initiatives such as MozTrabalha which provides technical and financial assistance to interventions providing decent employment for rural Mozambicans, particularly women and youth.

There is generally very limited integration of green and pro-poor policy, however some targeted programmes and pilot schemes have been developed. The government-led, nationwide SUSTENTA agriculture programme aims to integrate family farming with productive value chains to improve the quality of life of rural households by promoting sustainable agriculture. The programme adopts structural interventions to support poor farming households, while applying environmental and social safeguards.

Consultation processes partially in place, but very limited impact assessment. According to the VNR 2020 "in the context of planning, budgeting, implementation, monitoring and evaluation of public policies, Mozambique has established mechanisms to engage the different national actors at all levels (Central, Provincial, District and Municipal) to ensure interaction and participation in the decision-making processes on the countrys development. At the sectoral level there are stakeholder forums, platforms and networks operating. The National Territorial Development Plan, which went through a series of public consultation rounds during its development, will guide strategic planning nationwide and is anticipated to lead to capacity building and institutional strengthening actions which could support the establishment of formal impact assessment procedures.

Mozambique has a protection system in place for the most vulnerable groups, as enshrined under its 2007 Social Protection Law which determines citizens have the right to social protection, regardless of colour, race, sex, ethnic origin, place of birth, religion, level of education, social position, parents marital status or profession. Accordingly, funds are allocated from the State Budget for social protection measures, guided by the National Strategy of Basic Social Security 2016-2024. However, in general, both innovative and strategic approaches are lacking and the government has only recently begun looking at ways to integrate its gender mainstreaming work with social protection and climate change adaptation programmes.

Mozambiques Strategy and Action Plan for the Conservation of Biological Diversity 2015-2035 sets out the countrys commitment to meeting SDG 14 & 15. However, targets and implementation are weak. For example, to halt deforestation an urealistic target of 0.21% deforestation loss was set, despite the average rate sitting at almost four times higher (0.79%) between 2003-2013. There are positive signs of development in the marine sector, with a Blue Economy National Strategy and Maritime Spatial Management Plan (POEM) under preparation by the government. The plan will regulate the use of maritime waters (which make up 43% of national territory, yet only 2.5% of conservation areas), and will be subject to public consultation and financed through the creation of a Blue Economy Fund.

Mozambique is taking initial steps towards developing natural capital accounts. The government has launched a Natural Capital Programme, the first in Africa, (with support from the African Development Bank, WWF, the Natural Capital Project and Columbia University). The first stage of the program was to conduct a national-level assessment of the countrys natural resources due to be completed by 2020. Preliminary data gathering included a nationwide wetlands mapping programme and compilation of data from the Ministry of Agricultures National Forest Inventories. In 2021, the national statistical office commenced a 3-year project to establish routinely produced environmental-economic accounts.

There is no formal natural capital advisory body. Mozambique has established several technical committees and informal advisory groups such as the Inter-Institutional Climate Change Group and the Inter-Ministerial Group for the Green Economy and Nature (IGGEN). One of the key roles of these groups is to provide expert input and technical advice during the formulation of environmentally-related policy and strategy. For example, the IGGEN contributed to the development of the Green Economy Action Plan. As part of Mozambiques Natural Capital Programme, there are rumours that the government intends to establish a similar Inter-Ministerial Natural Capital Working Group, but no action on this to date.

No plans for nature-based fiscal reform evident or in the pipeline. A fiscal policy scoping study was commissioned by UNEP, but the recommendations have not been taken further by government. While lagging in terms of domestic action, Mozambique has become the first country to receive payments from the World Bank under an Emissions Reductions Payment Agreement for reducing emissions from deforestation and forest degradation, in collaboration with the Forest Partnership Facility. In exchange for reducing up to 10 million tons of C02 emissions in Mozambiques Zambezia Province by the end of 2024 the country will receive up to USD$50 million. This would make a significant contribution to the implementation of emission reduction activities, such as adopting sustainable agriculture practices, protecting forest resources and restoring degraded land.