Africa needs about $1.6 trillion to address climate change annually from 2020 to 2030, however it only gets three per cent of the total global climate finance, according to Akinwumi A. Adesina, President of African Development Bank Group.
He said while addressing the media on May 23 in Accra, Ghana, to kick off the Bank’s Annual Meetings that will go through until May 27.
Under a theme dubbed “Achieving Climate Resilience and a Just Energy Transition for Africa” central bankers from Africa will convene to share climate change and energy transition challenges that their countries face and showcase policy responses to tackle these challenges.
Africa, which accounts for just four per cent of the global greenhouse gas emissions, is short-changed by climate finance.
“Africa is not getting enough resources to tackle climate change. Climate financing mobilised globally falls short of Africa’s needs by $100-$127 billion per year since 2020-2030,” noted Adesina.
According to him, data has it that Africa loses about $7-15 billion due to climate change annually and it is expected to rise to $50 billion a year by 2040.
“As you all know climate change is an ever-present existential threat to Africa. From droughts, floods, and cyclones, extreme weather events are devastating African economies,” he said.
Faced with resource mobilisation challenges, Adesina pointed out that developed countries must fulfil their promise to provide $100 billion per year in climate finance to support developing countries.
Nevertheless, the bank’s president expressed confidence in Africa’s ability to bridge the gap by leveraging abundant energy resources available, including solar, hydro, wind, and geothermal resources.
“However, Africa cannot rely only on renewables, due to their intermittency. Africa needs to combine renewables with natural gas to assure stability and security of energy, and to improve access and affordability, as well as energy security,” he said.
It should be noted that even if Africa triples the use of gas for gas-to-power it will contribute less than 0.67 per cent to global carbon emissions, he added. “So, Just Energy Transition must not short-change Africa’s growth and development, especially stable energy to power its industrialisation.”
The Bank currently devotes 67 per cent of its $25 billion to climate finance adaptation.
In Rwanda, AfDB is co-financing a major energy project expected to reduce greenhouse gas emissions and accelerate the country’s efforts to achieve universal electricity coverage by 2024.
And recently, Jeanne d’Arc Mujawamariya, the Minister of Environment disclosed that Rwanda is working with private firms to fast-track studies that will pave the way for setting up a cooking gas factory.
