Africa needs $3 trillion to minimize its climate change vulnerabilities, says AfDB Chair Ken Ofori-Atta.
Humans, natural species, and the physical environment are vulnerable to and unable to adapt with climate change.
More frequent and extreme drought, storms, heat waves, rising sea levels, melting glaciers, and warmer seas threaten animals, their habitats, and people’s livelihoods and communities.
Mr. Ofori-Atta said Africa needed $3 trillion to implement NDCs and minimize climate risks.
He announced this during the AfDB’s 2022 annual meetings in Accra on Tuesday.
The week-long event will focus on “Achieving Climate Resilience and a Just Energy Transition for Africa” and address the continent’s energy transition concerns.
Ghana’s Finance Minister, Ken Ofori-Atta, said the continent required $66 billion for health and $39 billion for education.
UNECA estimates the development and funding deficit at $1.7 trillion. The continent’s infrastructure finance shortfall is $130–170 billion yearly through 2025.
Mr. Ofori-Atta remarked, “Given current local and global dynamics, we must actively mobilize resources via new ways, including the digital arena.”
“As global momentum around climate action increases, we need our development institutions to manage a sensible transition for Africa,” he continued.
Africa contributes less than 4% of world emissions but is disproportionately impacted by climate change and COP26 objectives.
Despite tremendous prospects for green investments, Africa garnered fewer than 1% of worldwide $600 billion green bond issuances.
Only 21 African nations have access to external financial markets, which is expensive. African countries with equal or worse economic fundamentals pay higher interest rates.
“Even after accounting for economic factors, estimates of the ‘African premium’ vary from 100 to 260 basis points,” stated the AfDB chair.
He encouraged AfDB to provide competitive funding for its members to address the development and financial gap.
Positioning our Bank to crowd in critical climate funding must continue to draw our attention, primarily because stranded assets’ is a growing worry in the African climate change discussion.