Africa facing climate financing gap: AfDB

Africa loses 5pc-15pc/yr of its GDP per capita growth because of climate change and its related impacts, according to the African Development Bank (AfDB)

At the same time, the continent needs around $1.6 trillion/yr in climate financing in 2022-30 if African countries are to meet their nationally determined contributions (NDCs) under the Paris climate agreement, said AfDB acting chief economist and vice-president Kevin Urama. NDCs are climate action pledges that aim to limit global warming to well below 2°C — and ideally to 1.5°C — over pre-industrial levels.

"Collectively, African countries received only $18.3bn in climate finance between 2016 and 2019," Urama said during a panel discussion at the Egypt International Co-operation Forum in Cairo. "This results in a climate finance gap of up $1.3 trillion/yr from 2020 to 2030."

"Climate change affects Africa severely, while the continent contributes to only 3pc of global emissions," the chief economist said.

Urama urged developed nations to bridge the "climate financing gap", adding that the global community must meet its $100bn commitment to help developing countries and African economies mitigate and adapt to climate change impacts. Investing in climate adaptation in the context of sustainable development is the best way to cope with global warming, he said.

Urama further stressed that natural gas must remain included in the continent's plan for a gradual transition to clean energy. Many African countries want gas to be classified as a transition fuel. But last month, the African Group of Negotiators rejected the African Union's proposal that African nations adopt a common position in favour of gas being endorsed as a transition fuel at the UN Cop 27 climate conference in Sharm el-Sheikh, Egypt, in November.

By Elaine Mills