AfDB to provide $25 billion climate financing, Adesina says
President of the African Development Bank Akinwumi Adesina speaks at the Africa Climate Summit 2023 at the Kenyatta International Convention Centre (KICC) in Nairobi, Kenya on September 5, 2023. PHOTO | NMG
African Development Bank (AfDB) has committed to providing $25 billion towards climate financing, the firm’s President Akinwumi Adesina said.
Speaking during the second day of the Africa Climate Summit held in Nairobi, he called for the change of global financial architecture to prioritise the needs for Africa, while also urging delegates to mobilise resources for climate financing.
Africa must use its natural gas and combine it with renewable resources, he said, adding that: “We must ensure that Africa's food and agriculture are climate resilient”.
Mr Adesina further said that African nations should voluntarily consider climate-friendly endeavours “not because someone has told us so, but because we have to”.
“We must revalue the wealth of Africa by accounting for the proper valuation of its natural resources, an example being the Congo forest which is a carbon sink. Africa's GDP must be revalued based on their carbon sequestration. Africa must develop its own carbon markets. It cannot be nature rich, and cash poor.”
The European Union (EU) President, Ursula Von Der Leyen, while lauding the Kenya Climate Change Act, 2023 that was launched during the summit, said that it puts prominence on the carbon markets.
To the summit, she said, she was bringing Europe's offer to be Africa’s ally at COP28.
“Climate action is part of the solution, you (Africa) are part of the solution, with your renewable energy and green hydrogen... This is a win-win partnership which benefits Africa and the world. Africa could produce enough clean energy, not only to power Africa, but also to export outside the continent,” she said, adding that the EU fully supports the need for multilateral development bank reforms.
She explained the EU was not only interested in extracting resources but also partnering with Africa to invest in skills and technologies in Africa.
Ms Leyen urged Africa to bring the conversation on climate financing to the global stage at COP28.
“Green bonds are widely recognised as providing part of the solution. We are ready to share our expertise on how you can develop your green bond initiative,” she said.
Ms Leyen further explained that setting the pricing on carbon was one of the crucial solutions at the disposition of African nations.
It makes heavy polluters pay a fair share of their pollution, which is necessary, she said.
COP28 President Sultan Al Jaber admitted that the world was losing the race to secure the Paris Agreement.
“We must admit that we are not going to get the results we need [with] the time we have. We must also accept that business as usual is not working. We need a smart pragmatic disruption. We need a plan that leaves no one behind. That is why I have been, and continue to, calling people to unite towards a plan of action that is fully inclusive,” he said.
While promising to continue to press for the delivery of the COP27 pledges, Mr Jaber said COP will no longer accept pledges and promises.
“I will continue to press on the issues of the $100 billion pledge by donors, that they fulfil their pledge. What was promised in Sharm El Sheikh must be delivered in Dubai,” he said.
According to him, a plan that would focus on people, lives and livelihoods and one that will finally fix climate finance is the real panacea.
“We should be enhancing food security and stimulating green growth. This continent is rich, and can help not just Africa.”
According to AfDB, $250 billion is required to fulfil Africa's climate needs. However, Africa only receives 12 percent of that, and only 2 percent on adaptation.
Mr Jaber said it was only fair for Africa to get a global share of the climate finance.
“We need a surgical intervention of the global financial architecture. I am pleased to answer the need by African leaders to foster green growth.”
United Nations (UN) Secretary-General Antonio Guterres said it was time to break addiction to fossil fuels, urging developed countries to develop a clear roadmap on doubling climate adaptation finance.
“And they must live up to their $100 billion promise. Every country must implement the Action plans launched last year,” Mr Guterres said, calling for reform in the global financial system.
“Just as the injustice of climate change burns fiercely here in Africa...the solutions discussed here brings a big step forward... ambitions in mitigation must be in line with the climate risks,” he said.
