At the recently concluded UN General Assembly (UNGA) 2024, Africa’s climate crisis once again took centre stage. Despite contributing minimally to global emissions, the continent bears a disproportionate share of the consequences, facing severe droughts, floods, and escalating food insecurity.
African leaders, with growing support from the international community, have intensified calls for increased climate finance. However, the critical question remains: will these promises finally translate into tangible, sufficient support?
According to the United Nations, high water stress is projected to affect about 250 million people across Africa, with up to 700 million people displaced by 2030. Currently, only 40% of the African population has access to early warning systems for extreme weather events and climate impacts. More than 40 African countries have revised their national climate plans, aiming for greater ambition in climate adaptation and mitigation efforts.
The Funding Gap and Africa’s Climate Crisis
Africa’s vulnerability to climate change is aggravated by its limited financial capacity to implement effective adaptation and mitigation strategies. While developed nations have pledged support, the gap between promises and actual disbursements remains stark. In 2021, global climate finance flows were estimated at between $850 billion and $940 billion, yet Africa received only a fraction of these funds. It is projected that the continent will need $2.5 trillion by 2040 to address climate change – a target far from achievable under current trends.
In 2022, African countries lost close to $9 billion due to climate-related loss and damage and spent an estimated 5-15% of their GDP per capita in recovery efforts. These costs are projected to escalate to at least $290 billion in a scenario where global temperatures rise by 2°C.
The UN Environment Programme (UNEP) estimates that adaptation costs for developing countries alone could range from $140 billion to $300 billion annually by 2030, escalating to $280 billion to $500 billion per year by 2050.
In contrast, developed regions such as Europe and North America have benefitted considerably from both public and private climate finance, leveraging their stronger institutional capacities and access to green markets. The global carbon credit market, valued at $760 billion in 2023, is expected to reach $2.68 trillion by 2028. Yet, Africa’s share in this market remains a mere 2%, with most transactions taking place in voluntary carbon markets.
The Case for Grant-Based Support
One of the persistent challenges in climate finance is the heavy reliance on loans, which only serves to increase Africa’s debt burden. Developing nations have repeatedly called for more grant-based funding rather than loans. At UNGA 2024, African leaders emphasised the need for a new financial architecture that would facilitate easier access to climate finance and eliminate bureaucratic barriers. The Global South remains largely excluded from significant financing opportunities due to structural and procedural hurdles.
Unlocking Africa’s Climate Potential
Africa’s potential for climate adaptation and mitigation, particularly in renewable energy, remains underutilised. The continent boasts some of the best solar resources in the world, with North Africa receiving over 2,000 hours of sunshine each year. Additionally, Africa’s long coastlines offer abundant wind resources. With the right financial mechanisms, Africa could transition rapidly to a green economy, creating jobs, reducing greenhouse gas emissions, and securing energy independence.
Africa’s vast carbon sinks, such as the Congo Basin, also play a crucial role in global climate stability. Expanding Africa’s capacity to engage in carbon trading could unlock further financial resources. However, for this to happen, a formal carbon market structure must first be developed, which would require not just financial investment but also technical expertise and institutional reforms.
The Road Ahead: From Pledges to Action
While the commitments made at UNGA 2024 reflect growing global awareness of Africa’s climate vulnerability, the true test lies in the delivery of these promises. Without timely, adequate, and accessible funding, Africa’s climate crisis will only worsen. Global leaders must act decisively to ensure that Africa receives the resources it needs to combat climate change – not only for the continent’s sake but for the stability of the planet as a whole.
African leaders, in collaboration with international partners, must continue to push for increased and more equitable financing. Exploring innovative solutions such as green bonds and blended finance could help bridge the current funding gap. Only by unlocking these resources will Africa be able to realise its full potential in the global fight against climate change.
