Climate finance: Nearly US$3 trillion needed to implement Africa’s NDCs

Nearly US$3 trillion is need to implement Africa’s Nationally Determined Contributions (NDCs), stakeholders at the 11th Conference on Climate Change and African Development (CCDA11) have said.

The NDCs serves as a resource pool for Regional Member Countries (RMCs), and to coordinate various sector activities with a view to fulfilling obligations related to the Paris Agreement.

At the event held in Nairobi, Kenya, the session on climate financing was moderated by Harsen Nyambe of the African Union Commission.

There is a substantial financial gap in climate finance in Africa. Yet climate disasters cost between 5 and 15% of GDP each year.

According to the United Nations Economic Commission for Africa (ECA), the implementation of Africa’s NDCs requires nearly $3 trillion, including about $2.5 trillion between 2020 and 2030.

The conference held that with the support of developed countries and the private sector, Africa must take ownership and define its energy transition to meet these challenges.

They averred that 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 concerns, with initiatives such as the Great Blue Wall, which promotes sustainability and job creation.

Stephen Funso of the African Development Bank (AfDB) stressed that adaptation is a priority for Africa.

He said the AfDB’s approach is to increase resources for priority sectors.

According to Funso, the bank will continue to strengthen and mobilize resources in each country, adding that to finance resilience, innovative solutions are the key priority to engage the private sector.