Summary:
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A just net-zero economy is necessary to address this and achieve the goals of the historic Paris Agreement, and finance is a critical lever in this process.
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By gaining access to climate finance, Africa can forge a new social contract, emerge from the crisis, become more resilient, and carve a path for fair structural development that meets its people’s needs.
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Discussions brought to light the urgent need for African governments to step up efforts to use suitable green growth financing mechanisms in addition to those offered by the United Nations Framework Convention on Climate Change, such as the Green Climate Fund or the recently announced loss and damage fund that was approved at COP27.To eliminate inequities, they also emphasized the significance of utilizing green finance for a recovery focused on people and inclusive development. “
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Investing in nature-based sequestration might meet up to 30% of the world’s requirements.
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African-owned growth models that are sustainable, inclusive, and resilient need to be put into motion to assist African nations in recovering from the twin COVID-19 and climate-related crises and reviving their economies.
African nations face the existential problem of promoting industrialization and economic transformation while adapting to the constantly shifting environment. A just net-zero economy is necessary to address this and achieve the goals of the historic Paris Agreement, and finance is a critical lever in this process. By gaining access to climate finance, Africa can forge a new social contract, emerge from the crisis, become more resilient, and carve a path for fair structural development that meets its people’s needs. This will enable it to create the kind of decent jobs that are essential for reducing inequality and poverty.
Participants presentations and actions reinforced the growing desire for better recovery and the development of a more inclusive, sustainable, and climate-resilient economy. It is important to note that, to implement Africa’s climate action commitments and Nationally Determined Contributions throughout 2020–30, between $1.3 trillion and $1.6 trillion, or an average of $1.4 trillion, will be required. This new social contract to reduce vulnerabilities in Africa must consider this information (NDCs). However, the amount of climate finance promised and mobilized for Africa falls short of the demands of the continent and its historical carbon emission levels, resulting in a projected annual financing shortfall of $99.9–127.2 billion in 2020–30.
According to Ms Hassatou Diop N’Sele, Vice-President for Finance and Chief Financial Officer of the African Development Bank, we must put in place mechanisms to assist governments in accessing these funds. “There are billions of dollars on climate funds, but Africa can access only three per cent,” she said.
Discussions brought to light the urgent need for African governments to step up efforts to use suitable green growth financing mechanisms in addition to those offered by the United Nations Framework Convention on Climate Change, such as the Green Climate Fund or the recently announced loss and damage fund that was approved at COP27.
To eliminate inequities, they also emphasized the significance of utilizing green finance for a recovery focused on people and inclusive development. “Up to 30% of the world’s sequestration requirements might be met by investing in nature-based sequestration. According to Jean-Paul Adam, Director of the ECA’s Technology and Climate Change Division, “At 120 USD per tonne of carbon, up to US$ 82 billion per year can be mobilized through nature-based carbon credits in Africa.
Green fiscal reform (sustainable budgeting) and climate-resilient investment, along with changes to current procedures, “might improve monitoring and assessment and help address the construction of realistic climate and SDG aligned Key Performance Indicators,” the authors wrote.
African-owned growth models that are sustainable, inclusive, and resilient need to be put into motion to assist African nations in recovering from the twin COVID-19 and climate-related crises and reviving their economies. New and resilient green financing frameworks are required.
