Climate Change Finance, Natural Capital Accounting by African Countries, Top African Development Bank Group’s Agenda at COP29
The world’s largest annual climate conference opens in Baku, Azerbaijan, on Monday, with African nations ramping up efforts to tackle climate change. At COP29, the African Development Bank aims to mobilize additional resources for climate action in Africa and launch a bold new approach to assessing African economies by including their "green wealth."
Organized by the United Nations Framework Convention on Climate Change Secretariat, COP29 follows last year’s landmark decision at COP28 to establish a Loss and Damage Fund. This year’s summit, dubbed the “Finance COP,” will see countries negotiate fresh climate finance targets.
Africa, with its vast carbon-sequestering forests and resources ripe for green growth, holds massive potential to drive clean energy access for millions. Yet, sub-Saharan Africa receives less than 3% of global climate finance, hindering efforts to advance National Adaptation Plans and Nationally Determined Contributions under the Paris Agreement.
“There is no reason why Africa should be greenly poor. Africa should be greenly wealthy by proper valuation of its vast contributions to global environmental services,” African Development Bank Group President Akinwumi Adesina said during a meeting of African Ministers of finance, economy, foreign affairs, climate change, and environment in the run-up to COP29.
To achieve this green wealth, Adesina is advocating for recalibrating the GDP of African countries to reflect natural assets like forests and carbon sinks. This recalibration could reveal a significantly higher GDP, better reflecting Africa’s environmental contributions.
The upcoming COP29 summit will provide a platform for African leaders to introduce “Measuring the Green Wealth of Africa,” an initiative that could redefine African economies. According to the African Development Bank’s preliminary estimates, adjusting for carbon sequestration alone could have boosted Africa’s nominal GDP in 2022 by $66.1 billion—a 2.2% increase. Six Congo Basin countries (Cameroon, Central African Republic, Democratic Republic of Congo, Republic of Congo, Equatorial Guinea, and Gabon) accounted for nearly 64% of this increase.
“That means that the countries can have larger headroom to take on more financing and invest them for the greening of their economies. Therefore, Such a move is important for re-computing Africa's debt sustainability,” Adesina said.
During the meeting, participating nations voiced their strong backing. The Republic of Congo and Kenya are the lead champions for the initiative.
Adesina called for the outcome of the heads of state summit at COP to be presented before the African Union Summit next year.
Mobilizing more resources to support African Countries tackle climate change
Africa receives only 3-4% of global climate finance despite accounting for 9 of the world’s 10 most vulnerable countries to climate change. Significantly, boosting the share of climate finance directed toward African nations is one of the major reasons for the Bank’s presence at COP29.
The African Development Fund’s Climate Action Window will, on Wednesday, 13 November, host a session to discuss how to unlock climate finance for Africa's vulnerable communities via this critical arm of the Bank Group. The Climate Action Window was established under its 16th replenishment cycle to help fill Africa's significant climate finance gap.
Other high-level events include Wednesday’s Measuring the Green Wealth of African Nations, which will be attended by heads of state and government. It will be followed by the launch of a report about Green Wealth. The Bank will host an event to rally support for Mission 300, a joint undertaking with the World Bank Group and partners to connect 300 million people in Africa to electricity by 2030.
The African Union and the government of the Republic of Tanzania will host a high-level side event on clean cooking titled “Addressing Clean Cooking Challenges in Africa: A Call for African Leadership.” It will highlight the urgent need for political leadership, innovative partnerships, and substantial financial investment to achieve sustainable, clean cooking solutions across Africa.
To learn more about the Bank’s activities at COP29 and to follow the Africa Pavilion, co-sponsored by the African Development Bank as a platform and voice for Africa’s effective participation in climate change discussions, connect to the COP29 microsite.
Cover photo: From Getty Images
