Climate action is gaining momentum, with climate finance playing a critical role in mitigation, resilience building, and adaptation initiatives. However, it is essential that the voices of the most climate-vulnerable countries are heard in every decision to achieve impact on a large scale. Ibrahima Cheikh Diong from ARC Group and Abdoul Salam Bello from World Bank Group discuss this issue.
As a continent home to some of the most climate-vulnerable countries in the world, the African perspective must be a key consideration in agreements and prioritized actions.
The World Meteorological Organization reports that 2023 was the warmest year on record globally, with 2024 predicted to continue this trend. Despite this, climate action is still behind targets, with a high likelihood of global temperatures exceeding the 1.5 degrees warming limit without curbing emissions. This highlights the need for intensified global climate action with a people-first approach.
Global warming poses a significant existential threat, requiring urgent and intentional climate action. Climate finance has been a contentious topic among decision-makers, yet without adequate financing, we cannot effectively combat this crisis. Transitioning to a low-carbon global economy necessitates massive capital injections and increased investments in resilience-building and adaptation initiatives. Financial resources for response must be accessible, affordable, and readily available.
Africa is disproportionately affected by climate change, despite contributing the least to this phenomenon globally. The continent hosts seven of the ten most climate-vulnerable countries. Around 78% of the population relies on agriculture for livelihoods, a sector heavily impacted by climate change. Rising temperatures, erratic rainfall, and increased food insecurity pose challenges to farming activities.
The climate crisis places numerous demands on countries seeking to respond to a warming and hostile world. Climate-induced events result in loss of lives, economic costs, infrastructure devastation, and other impacts. Climate change exacerbates existing crises such as food insecurity, disease outbreaks, and conflicts.
To avoid the worst impacts of climate change, massive climate finance is needed, estimated in the trillions globally. Africa alone requires at least USD 6 trillion to implement its National Determined Commitments and address the costs of loss and damages due to climate change. The continent is experiencing an increase in climate-induced events, resulting in significant loss and damage annually.
Reforming the global financial architecture is crucial to reflect the current reality, improve inclusivity, and effectiveness. Efforts must simplify the financial landscape, stabilize the international system, and remove barriers hindering access for vulnerable countries. Financial instruments should be easy to access, accommodate all stakeholders’ needs, and offer predictability.
The 2023 Intergovernmental Panel on Climate Change (IPCC) report emphasizes the need for urgent systemwide transformations for a net-zero climate-resilient future. Africa has the opportunity to transition to a green economy, particularly in agriculture, through investments in research, technology, and other sectors.
Although there has been an increase in climate finance globally, the funding gap remains significant to drive substantial action. Mobilizing resources and ensuring equitable access are ongoing challenges, especially for developing nations. A non-monopolistic approach to climate finance is needed to ensure a consistent flow of resources.
Africa’s unique climate challenges require customized solutions tailored to the regional context to support National Development Strategies. Developing diverse financial models drawing from public and private sources is essential to address climate financing needs in the 21st century.
The World Bank, as a key multilateral institution on climate finance, is committed to allocating funding for climate change mitigation and adaptation. Prioritizing adaptation and resilience, especially in Africa, including building early warning systems, aligns with the Bank’s mission to eradicate poverty sustainably.
The upcoming UNCCD COP15 presents an opportunity to address drought and land degradation urgently. A global approach is necessary to tackle food insecurity, illegal migration, and other climate-related challenges. Mobilizing resources for initiatives like the Great Green Wall for the Sahara and Sahel will benefit both climate action and communities.
The launch of the Loss and Damage Fund will support a specific aspect of climate response, but complementary and comprehensive solutions are necessary. Strengthening global preparedness for climate action requires improving all aspects of finance for efficiency and effectiveness.
By Ibrahima Cheikh Diong, UN Assistant Secretary General and ARC Group Director General and Mr. Abdoul Salam Bello, Executive Director, Africa Group II, World Bank Group