Pressure mounts as Africa climate summit draws near

To put this challenge into perspective, African countries must raise a staggering USD124 billion annually by 2030, but currently, they receive a mere USD28 billion per year.

This alarming funding gap has placed immense pressure on the ACS to serve as a turning point in addressing climate change in Africa. Mohamed Adow, Director of the energy and climate think-tank Power Shift Africa, stresses, "How Africa develops over the next two decades will determine the fate of the planet."

Restructuring climate finance remains a pressing challenge. Africa needs an estimated USD1.6 trillion between 2022 and 2030 to achieve its nationally determined contributions (NDCs), but the continent received only USD30 billion in financing flows in 2020. African nations are seeking to transition from fossil fuel economies to renewable growth, and finance is pivotal to this transformation.

The role of international financial institutions, particularly the IMF and multilateral development banks, is becoming increasingly crucial in providing climate finance to developing countries. These institutions play a key role in redistributing funds from developed countries to developing nations, aiding in tackling development challenges exacerbated by climate change.

Yet, the current financial structure faces challenges amidst a global polycrisis. Rising inflation levels, food crises, debt crises, and climate crises are straining resources and complicating financing efforts. Africa's potential for economic growth and renewable energy development hinges on securing the necessary funding.

The private sector also possesses significant resources that could be harnessed. An estimated USD630 billion of private capital per year is available for investment in food systems.

The summit seeks commitments from governments and the public sector to mobilize funds for the vast climate finance shortfall required for agriculture.

Mwandwe Chileshe, Global Policy Lead for Food Security and Agriculture at Global Citizen, emphasises that adaptation finance must prioritise the needs of those most impacted by climate change, especially smallholder farmers who form the backbone of Africa's agriculture sector.

African nations are also looking to harness their renewable energy potential to drive sustainable development and combat climate change.

Despite possessing the capacity to produce 40 percent of global solar power, Africa currently accounts for just one percent of the market. The gap between potential and reality is stark, with only 0.01 per cent of wind power potential tapped thus far.

"The renewable energy industry is committed to scaling up the total global capacity to at least 11,000 GW by 2030," says Bruce Douglas, CEO of the Global Renewable Alliance. However, the continent's renewable energy investment has lagged behind, receiving only 0.8 percent of the global investments in 2022.

Africa's renewable energy investment stands at USD9.4 billion annually, a meagre figure compared to its true potential. Chilufya Chileshe, a food policy expert from the SDG2 Advocacy Hub, highlights the urgent need to prioritise climate

Several key issues related to climate adaptation are set to be discussed during the summit, including reforming finance to enable post-disaster reconstruction and strengthening the African Adaptation Initiative. There is also an urgent call to deliver the UNFCCC Loss and Damage Fund, putting pressure on wealthy nations to expedite its establishment.

Another pressing concern on the summit's agenda is the need for substantial investments in renewable energy. Africa, with its abundant solar, wind, geothermal, and hydro resources, has the potential to produce 40 per cent of the world's solar power.

However, it currently accounts for just one percent of global production. According to Bruce Douglas, CEO of the Global Renewable Alliance, "Let us harness the potential of renewable energy in Africa not just for the climate but as a socioeconomic catalyst."

Despite this vast potential, renewable energy investment in Africa lags behind. In 2022, the continent received only 0.8 percent of the USD495 billion invested globally in renewables. The ACS will call for ambitious investments in clean energy, as Africa needs USD133 billion annually between 2026 and 2030 to meet its energy and climate goals.

Furthermore, the summit will emphasize the importance of green minerals, as Africa holds 30 per cent of the world's mineral reserves, including critical minerals like copper, lithium, and cobalt.

Dr. Marit Y. Kitaw, Interim Director of the African Minerals Development Center (AMDC), notes that this presents a unique opportunity for Africa to benefit from the global demand for these minerals and drive sustainable development and industrialisation on the continent.