The African Development Bank (AfDB) has released a series of reports that provide guidance for African countries to access climate finance and invest in green growth. The reports are part of the AfDB’s Climate Finance Tracking Initiative, which aims to enhance the transparency and accountability of African climate finance flows.
The reports cover four key sectors: energy, transport, water and agriculture. They offer a range of policy recommendations to enhance economic growth and resilience while addressing climate change as a significant challenge. The reports also highlight the opportunities and benefits of climate finance for African countries, such as job creation, poverty reduction, improved health, and environmental protection.
According to the AfDB, Africa is the most vulnerable continent to the impacts of climate change but also has the lowest share of global climate finance. In 2019, Africa received only 3% of the total public climate finance flows, amounting to $16.5 billion. The AfDB estimates that Africa needs $20-30 billion annually by 2030 to adapt to climate change and $40-50 billion annually to transition to a low-carbon economy.
To bridge this gap, the AfDB has committed to mobilize $25 billion in climate finance between 2020 and 2025 and to ensure that at least 40% of its lending supports climate action by 2021. The bank also provides technical assistance and capacity building for its regional member countries to access and manage climate finance from various sources, such as the Green Climate Fund, the Global Environment Facility, and the Adaptation Fund.
The Climate Investment Funds supports the AfDB’s Climate Finance Tracking Initiative, a multilateral funding mechanism that provides concessional financing for low-carbon and climate-resilient development. The initiative also aligns with the Paris Agreement, the Sustainable Development Goals, and the African Union’s Agenda 2063.
The AfDB hopes its new guidelines will help African countries seize the opportunities of climate finance and green growth and contribute to global efforts to combat climate change. The bank also invites other stakeholders, such as development partners, the private sector, civil society, and academia, to join its efforts and collaborate for a greener and more prosperous Africa.
Source: Business Day
