- Global warming costs Africa up to 5% of its economic output, while the continent receives just 1% of global climate finance.
- African nations need $1.3 trillion to address climate change but receive only a fraction of the $100 billion promised in global financing.
- Calls for innovative financing solutions, such as debt refinancing and carbon markets, are growing as leaders prepare for COP29 in Baku.
According to United Nations climate chief Simon Stiell, Africa is losing up to 5% of its economic output due to global warming. He called for more investments to help African nations adapt to climate change.
Africa contributes far fewer emissions than the industrialised world but receives only 1% of global climate finance annually. “The climate crisis is an economic sinkhole, draining growth,” said Stiell, the executive secretary of the UN Framework Convention on Climate Change (UNFCCC) on September 4.
Stiell addressed a meeting of African ministers of the environment in Abidjan, Ivory Coast. At the pre-COP29 meeting, African leaders and negotiators discussed ways to push for better support.
Despite attracting new investments in climate projects, African countries still receive only a tiny share of the $100 billion promised in global financing. African officials say this is a fraction of the $1.3 trillion needed to address climate change, though they did not specify when this funding would be required.
“An epidemic of underinvestment is limiting Africa’s potential to lead in climate solutions,” Stiell said. He stressed that Africa needs $4 billion annually to stop using traditional cooking fuels like wood, which contributes to emissions. Stiell added that while $400 billion was spent on clean energy globally last year, Africa received only $2.6 billion.
The effects of climate change have been severe for Africa, with prolonged droughts and devastating floods impacting food production, increasing prices, and worsening hunger. These events have driven up calls for more climate finance ahead of COP29 in Baku, where countries will set new climate finance targets.
“We must use innovative financing without increasing debt burdens,” said Hanan Morsy, chief economist at the United Nations Economic Commission for Africa (UNECA). She emphasised solutions like debt refinancing, swaps, and carbon markets to help Africa address its climate challenges.
As African leaders prepare for COP29, they push for more support to adapt to a rapidly changing climate. The stakes are high, with food security and economic stability at risk across the continent. Climate change continues to deepen the gap between Africa and the rest of the world in terms of finance and adaptation strategies.
In conclusion, Africa remains at the forefront of the climate crisis despite its limited contribution to global emissions. As the world prepares for COP29, African leaders hope to secure more significant financial commitments. However, current levels of investment fall far short of the continent’s needs, leaving many African nations vulnerable to the worsening impacts of climate change.
The challenge is finding innovative ways to close this financing gap while ensuring Africa can adapt without worsening its economic burden.