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What gain for Africa in terms of climate financing?

Baku (© 2024 Afriquinfos) – The conclusions of COP 29 in Baku (from November 11 to 22, 2024), highlighted ambitious climate financing needs for Africa. The need to triple funding for developing countries was discussed, aiming for a target of $300 billion per year, compared to the previous target of $100 billion.

African countries have also highlighted financial requirements of up to $2.8 trillion to meet their nationally determined contributions (NDCs). These discussions suggest a potential increase in climate financing in the future, although it remains to be seen what concrete commitments will result.

Thus, the United Nations Climate Change Conference (COP 29) has a new financing objective to help countries protect their populations and economies against climate disasters, and share the vast benefits of the energy boom. clean.

In addition to the agreement to triple funding to developing countries, compared to the previous objective of 100 billion dollars per year, to 300 billion dollars per year by 2035, the Baku meeting aims to: ensure efforts by all stakeholders to work together to increase financing to developing countries, from public and private sources, to reach an amount of $1.3 trillion per year by 2035.

Officially known as the New Collective Target for Climate Finance (NCQG), it was adopted after two weeks of intense negotiations and several years of preparatory work, as part of a process requiring all nations to unanimously agree on each term of the agreement.

« This new financing objective is an assurance for humanity, in a context of worsening climate effects which are hitting all countries “, said Simon Stiell, Executive Secretary of UN Climate. “ But like any insurance, it can only work if the premiums are paid in full and on time. »

« It will continue the rise of clean energy, helping all countries benefit from the considerable benefits associated with it: more jobs, stronger growth, more affordable and cleaner energy for all. »

Africa’s significant financing gap highlighted

For its part, the International Energy Agency predicts that global investments in energy will exceed $2,000 billion for the first time in 2024.

Speaking on behalf of Kevin Kariuki, Vice President of the African Development Bank Group, the head of the Bank’s climate and environment finance division, Gareth Phillips, highlighted the significant financing gap of Africa. “ The African Economic Outlook forecasts a financing need of around $2.7 trillion by 2030, or around $400 billion per year, to effectively combat climate change. ” said Mr. Phillips. “Yet Africa received only $47 billion in 2022, representing only 3.6% of global climate finance. Although the Bank’s record $5.8 billion investment in climate adaptation and mitigation last year marks progress, it remains insufficient. We must significantly accelerate our efforts to mobilize climate finance. »

The African Development Bank has outlined several ambitious initiatives aimed at closing this gap, including the creation of green banks, expanding support through the Climate Action Window, creating new sources of revenue for actions through the Adaptation Benefits Mechanism, the Africa Adaptation Acceleration Program, and increased focus on carbon markets, nature-based solutions and biodiversity conservation .

Climate Investment Funds (CIF) Managing Director Tariye Gbadegesin highlighted the organization’s catalytic role in scaling solutions. “ CIFs help multilateral development banks innovate and address complex and high-risk areas. With more than $12 billion in funding supporting nearly 400 projects in more than 80 low- and middle-income countries, our work spans renewable energy, nature-based solutions, and the transition away from coal. With its specific vulnerabilities and its immense potential, Africa is on the front line facing the challenge of climate change. »

The Regional Director for Africa of the United Nations Office for Project Services (UNOPS), Dalila Goncalves, highlighted the central role of non-financial institutions, like UNOPS, in facilitating effective use climate finance, particularly in fragile and high-risk environments.

The new COP 29 financing target builds on significant advances in global climate action at COP 27, which approved a historic Loss and Damage Fund, and COP 28, which reached a global agreement to make a rapid and equitable transition away from all fossil fuels in energy systems, to triple renewable energy and to strengthen resilience to climate change.

COP 29 also reached an agreement on carbon markets, which several previous COPs had failed to finalize. These agreements will help countries implement their climate action plans more quickly and at lower cost, and make faster progress in halving global emissions this decade, as science demands.

A Cop marred by limits

Simon Stiell also recognized that the agreement reached in Baku did not meet the expectations of all Parties and that there was still much to be done next year on several crucial issues.

« No country got everything it wanted, and we leave Baku with a mountain of work to do “, said Simon Stiell. “ The many other issues we need to make progress on may not make the headlines, but they are vital to billions of people. So now is not the time to declare victory, we must concentrate and redouble our efforts on the road to Belém. »

The funding deal reached at COP 29 comes as more ambitious national climate action plans (Nationally Determined Contributions or NDCs) are due from all countries next year. These new plans must cover all greenhouse gases and all sectors, in order to keep the limit of 1.5°C warming within reach. During COP29, two G20 countries – the UK and Brazil – made it clear that they plan to step up climate action in their NDCs 3.0, because it is entirely in the interest of their economies and of their populations.

«We still have a long way to go, but here in Baku we have reached another important milestone ” Stiell said. “The UN Agreement is humanity’s lifeboat, there is nothing else. So here in Baku, and all the countries represented in this room, we are moving forward together.»

Africainfos

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