Climate finance has failed Africa. African countries receive a grossly insufficient amount of climate finance, falling far short of what they require. For the period 2020-2030, the average annual climate funding needs for Africa are estimated at around $33.5b for adaptation, $72b for mitigation, and $36.5b for loss and damage, totaling $142b. However, annual climate flows to Africa currently stand at only $30b. If the same level of climate funding persists throughout the period 2020-2030, there will be an annual shortfall of $112b – amounting to a total climate finance gap of $1.1tn. At COP26, the advanced countries promisedto double global adaptation funding by 2025, which would amount to an additional $40b per year for Africa. However, Africa would still face a total shortfall of at least$820m for the decade.
Six Priorities for Africa at COP27
Three immediate actions:
Multilateral agencies and development finance institutions should:
Deliver technical assistance to African countries and streamline climate fund processes to improve access to already available climate finance.
Improve capacity building and technology transfers to enhance the transition to low-carbon economies and help access Africa’s huge carbon stocks for job creation and development.
Invest in two or three renewable energy manufacturing centers in Africa to produce products such as solar panels and batteries for the African market.
Three new long-term targets and goals:
To close the climate finance gap, rich countries need to make a strong commitment to $1.3tn in climate funding for Africa for the period 2020-2030 to cover the costs of climate adaptation, mitigation, and loss and damage.
Africa’s long-term energy transition to net zero has to include natural gas as a transition fuel, and climate funding should be made available for natural gas development projects.
The global financial architecture has to be reformed to better serve developing countries and address the climate crisis. More innovative instruments such as green bonds, green loans, debt-for-climate swaps, and climate-linked debt should be made available; unused Special Drawing Rights should be reallocated for climate finance, and climate funding processes need to be streamlined and made more transparent.