Global Climate Finance: Assessing Africa's Share and Progress
The impact of climate change on Africa is catastrophic, yet likely underestimated. African Development Bank Group President Akinwumi Adesina cast a spotlight on the extent of the challenge to participants of the recent World Bank Spring Meetings, stating that ‘9 of the 10 most vulnerable countries to climate change globally are in Africa.’ According to the 2022 State of the Climate in Africa report, an alarming 110 million people across the continent were affected by weather, climate, and water-related hazards. However, experts believe this figure may be conservative due to systemic under-reporting and insufficient research on climate-related threats in the region. As the world grapples with the escalating climate crisis, Africa's vulnerability demands urgent attention and action.
The global demand for accelerated climate finance action in 2024 has reached a critical juncture. While the doubling of climate finance from 2021 to 2022—reaching $1.3 trillion—marks a significant step forward, it falls drastically short of what is needed. To meet the Paris Agreement's goal of limiting global warming to below 1.5 degrees Celsius, experts estimate a five-fold increase in annual climate investments is necessary. Against this backdrop, the Green Climate Fund (GCF), the world's largest multilateral climate fund, held its 39th Board Meeting (15-18 July 2024) in the Republic of Korea. On the agenda was the consideration and approval of 17 funding proposals totaling just over $1 billion, with 22% ($227.1 million) earmarked for Africa. These proposals will shift the GCF's funding distribution to 37% ($5.6 billion) for Africa, 35% ($5.2 billion) for Asia-Pacific, and 25% ($3.7 billion) for Latin America and the Caribbean. Almost a quarter ($3.3 billion) is committed to energy access and power generation activities. This is compared to the estimated annual funding of $30 billion required for Africa to realise universal electricity access by 2030. In addition, Africa needs $277 billion per year for climate adaptation. GCF’s allocation, commendable but insufficient, underscores the considerable gap between current efforts and the significant financial mobilisation required to effectively combat climate change in Africa.
Several African countries demonstrate the transformative potential of adequate investment and enhanced access to climate financing:
Senegal's funding proposal ($9.8 million) to the GCF aims to replicate the successful "Naatangué" farm model across 497 farms, building on its proven track record of developing sustainable subsistence and export agriculture while creating over 16,000 jobs. This expansion has garnered strong interest due to its dual impact on climate mitigation and adaptation. On the mitigation front, the project will replace diesel engine pumping and irrigation with solar power, reducing emissions by 915.7 tCO2 annually and 18,314.16 tCO2 over the project's lifespan. Adaptation efforts will focus on supporting vulnerable communities, enhancing health and well-being, ensuring food and water security, and protecting ecosystems and their services. The ambitious initiative is projected to directly benefit 46,940 individuals, with a far-reaching indirect impact on 1,480,329 people, showcasing the potential for scalable, climate-resilient agricultural development in the region.
Malawi, ranked among the 20 most climate-vulnerable countries globally, is set to receive crucial funding ($42.8 million) for a comprehensive climate resilience project. The proposal targets rural communities at the watershed level, employing an innovative approach that combines ecosystem-based adaptation with integrated landscape management. On the mitigation front, the project will focus on forestry and land use practices, aiming to sequester an impressive 2,750,323 tCO2eq over its lifespan. Adaptation efforts will address multiple critical areas: supporting the most vulnerable populations, enhancing health and well-being, bolstering food and water security, and preserving vital ecosystems and their services. This holistic strategy is designed to significantly boost the climate resilience of Malawi's rural areas, with projections indicating that 574,855 people will directly benefit from the initiative. By tackling both immediate community needs and long-term environmental sustainability, this project exemplifies the type of multifaceted approach necessary for effective climate action in highly vulnerable regions.
Mozambique's funding proposal ($23.5 million) centres primarily on adaptation, with a strong focus on assisting the most vulnerable communities and enhancing health, well-being, food security, and water access. The project ingeniously integrates two existing initiatives: the Productive Social Action Program (PASP) and Local Adaptation Plans (LAP). PASP, a social protection program, targets highly vulnerable households, prioritising those led by women, persons with disabilities, and families with malnourished children. It offers social cash transfers through public works, stabilising income and consumption while encouraging sustainable income-generating activities. This coordinated approach will directly benefit 414,857 children, youth, women, and men across 9 districts in the provinces of Manica, Tete, and Gaza. The project's ripple effect is expected to indirectly reach an additional 559,863 people, bringing the total impact to 974,920 individuals. By layering social protection with climate adaptation activities, this initiative demonstrates how targeted interventions can address both immediate socioeconomic vulnerabilities and long-term climate resilience, offering a model for comprehensive climate action in developing nations.
The Horn of Africa ($151 million), encompassing Djibouti, Ethiopia, Kenya, Somalia, and South Sudan, faces acute climate challenges exacerbated by highly variable rainfall patterns, leading to recurring humanitarian emergencies, food insecurity, and infrastructure damage. A comprehensive climate resilience project aims to address these issues through a dual approach of mitigation and adaptation. Mitigation efforts focus on energy generation and access, as well as forestry and land use practices, with an ambitious target of reducing emissions by 14.1 MtCO2eq. The adaptation strategy targets the region's most vulnerable communities, prioritising health, well-being, food and water security, and ecosystem preservation. Central to this initiative is increasing the resilience of agro-pastoral and pastoral communities through multifaceted interventions: constructing water harvesting infrastructure, promoting sustainable land management, facilitating access to climate-smart innovations and renewable energy, and improving credit availability. This project not only aims to overcome the constraint of limited access to concessional finance in the region but also promises to directly benefit 1.9% of the total population, with indirect benefits reaching up to 6.4%. By addressing immediate climate threats while building long-term resilience, this initiative represents a crucial step towards sustainable development in one of Africa's most climate-vulnerable regions.
The climate finance initiatives in Senegal, Malawi, Mozambique, and the Horn of Africa represent critical steps towards addressing Africa's pressing climate challenges. These projects showcase innovative approaches that combine mitigation and adaptation strategies, targeting the continent's most vulnerable communities while fostering long-term resilience.
While these efforts are commendable, they underscore a stark reality: the current scale of climate finance falls drastically short of Africa's needs. It is imperative that the international community recognises the urgency of scaling and delivering climate finance for Africa. The path ahead demands not only increased funding but more efficient mechanisms for disbursement and improved access to concessional finance that does not exacerbate Africa’s existing debt burdens. Stronger and more equitable partnerships between global institutions, national governments, and local communities will ensure fairness in our collective response to climate vulnerability and commitment to securing a sustainable future.
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