Africa needs about $3trillion to close the existing financial gap in climate finance through Nationally Determined Contributions (NDCs), according to the United Nations Economic Commission for Africa (ECA).
This was disclosed at the recent 11th Conference on Climate Change and African Development (CCDA11) during a session on climate finance, in Nairobi, Kenya, moderated by Harsen Nyambe of the African Union Commission.
According to ECA, climate disasters cost between five and 15 percent of GDP each year and the implementation of African NDCs requires nearly $3 trillion, including about $2.5 trillion between 2020 and 2030.
With the support of developed countries and the private sector, Africa must take ownership and define its energy transition to meet these challenges. The continent has abundant renewable energy resources, potential for green hydrogen production, essential minerals for renewable energy products, and natural capital for carbon sequestration.
Jean-Paul Adam, at the Office of the Special Advisor on Africa (OSSA), said ECA has worked closely with member states to support the green transition through efforts such as the Sustainable Debt Coalition (SDC), and emerging debt-for-nature swaps to close the financial gap.
Africa’s rich marine ecosystem is also at the centre of concern, with initiatives such as the Great Blue Wall, which promotes sustainability and job creation.
Stephen Funso of the African Development Bank (AfDB) said that adaptation was a priority for Africa. The AfDB’s approach is to increase resources for priority sectors. According to Funso, the bank will continue to strengthen and mobilise resources in each country. Finance, resilience, innovative solutions are the key priority to engage the private sector, Funso said.