African economies lose up to 5% of GDP, on average, annually because of climate-related disruptions and, while they require adequate, predictable and accessible finance, the structure of existing climate finance continues to perpetuate inequities. ALSO READ: COP29: What African group of negotiators hope to walk away with Amb. Claver Gatete, the United Nations Under-Secretary-General and Executive Secretary of the United Nations Economic Commission for Africa, stressed this on Wednesday, November 13. He was deliberating on the vital theme of “Scaling up Financing for Climate Adaptation and Green Growth in Africa,” at the Africa Day side event on the margins of the ongoing 29th United Nations Climate Change Conference (COP29) in Baku, Azerbaijan. ALSO READ: COP29: What is Rwanda's main agenda in Baku? During the side event attended by leaders including Mohamed Ould Cheikh AI- Ghazouani, the President of Mauritania and Chairman of the African Union, William Ruto, the President of Kenya, Akinwumi Adesina, the President of the Africa Development Bank Group, Gatete started by extending his “gratitude to all colleagues and partner organizations for convening this timely forum” to address Africa’s urgent climate finance needs. He added: “Today, we are meeting in Baku, a city that, like many others, bears the marks of climate impacts. From changing sea levels to shifting weather patterns, it reminds us that climate change is a present and pressing reality for every nation. “Yet we are off track on all measures and targets, from financing, to adaptation to resilience building. The daily realities grow worse for Africa. African economies lose up to 5% of GDP, on average, annually because of climate-related disruptions.” Today, Gatete noted, much of the available climate funding is disbursed as loans, and not as grants, adding to Africa’s already high debt levels. “We should not continue to settle for this way of doing business,” he said, echoing President Paul Kagame’s rallying call on Wednesday, when the latter urged world leaders to fairly compensate Africa for its extensive contributions to climate action, as the continent is the least responsible for global emissions. https://x.com/UrugwiroVillage/status/1856696977381081433 To address the continent’s climate and economic challenges, Gatete noted, the ECA presents five critical policy priorities that outline a path toward an empowered, climate-resilient Africa. ECA’s five critical policy priorities toward an empowered, climate-resilient Africa, are: 1. Leverage Africa’s critical minerals First, Gatete said, “we must leverage Africa’s critical minerals” to drive a green economic transformation. Africa’s wealth of clean energy sources, combined with its critical minerals, he noted, has the potential to power a climate-resilient future. The battery and electric vehicle industries – expected to be worth trillions by 2050 – demonstrate Africa’s strategic role in the global green transition, he said. He said that through initiatives like the DR Congo and Zambia’s collaboration on a Special Economic Zone for battery value chains, Africa can lead in clean energy production, create jobs and promote sustainable economic growth 2. Enhance Africa’s carbon capture potential Second, he noted, it is imperative that “we enhance Africa’s carbon capture potential” through structured, nature-based solutions. Africa’s ecosystems, particularly the Congo Basin, hold vast capacity for carbon storage, which could mobilize up to US$82 billion per year through high-integrity carbon credits, he said. “Yet, to ensure that Africa’s carbon markets benefit African economies and communities, we need a robust and transparent system. And this is why the ECA is supported initiatives like the Congo Basin Climate Commission’s carbon market protocols to build a market that both safeguards Africa’s interests and contributes to global climate goals. We are replicating these efforts in the Sahel region and African island states.” Properly harnessed, these assets can secure fair compensation for Africa’s vital ecosystem services, he said. 3. Commit to establish the New Collective Quantified Goal Third, Gatete said, “we must commit” to establish the New Collective Quantified Goal (NCQG), a goal that is based on real needs, which is estimated at US$1.3 trillion for Africa. The NCQG on climate finance is a key element of the 2015 Paris Agreement, aimed at setting a new financial target to support developing countries in their climate actions post-2025. The goal which seeks to address persistent gaps in climate finance by providing a more realistic and ambitious financial framework builds on the previous commitment made at the Copenhagen Climate Summit in 2009, where developed countries pledged to mobilise $100 billion per year by 2020 to address the needs of developing countries. Gatete said: “Available financing continues to fall short, and our public finances must be complemented by private funds to build resilience, protect diversity, and foster climate-responsive development.” 4. Accelerate clean energy transition Fourth, Gatete said, is accelerating the clean energy transition for Africa’s long-term economic resilience and prosperity. He said: “The transition to renewable energy, Excellencies, is unstoppable. Already, electricity from new wind and solar installations is more cost-effective than fossil fuels in many regions. As the world moves toward a green economy, Africa has a chance to position itself at the forefront. “With coordinated policies and investment, Africa can become a global hub for renewable energy, ensuring that our economies benefit from the transition while safeguarding the environment.” 5. Decisive action to limit greenhouse gas emissions Finally, he said, is the need for urgent, decisive action to limit greenhouse gas emissions and avoid the irreversible impacts of climate change. “Africa, despite its minimal contribution to global emissions, is committed to doing its part. However, we call upon global partners to match this commitment with actionable support, because delaying increases risks for us all.” Gatete noted that he envisions an Africa where sustainable resources “power our industries, where our young entrepreneurs lead in green technology, and climate finance enables our development aspirations.” “I am convinced that these are not distant aspirations but achievable realities if we act now.” The United Nations Economic Commission for Africa, he said, remains committed to joining hands with partners including the African Union, AfDB, AUDA-NEPAD, Afrexim Bank, and all stakeholders to establish an equitable approach to scaling climate finance for Africa. “For the cost of inaction is far greater than the investment required to build a resilient and prosperous future for Africa today.”
