There is a substantial financial gap in climate finance in Africa. Yet climate disasters cost between 5 and 15% of GDP each year. According to the United Nations Economic Commission for Africa (ECA), the implementation of African Nationally Determined Contributions (NDCs) requires nearly $3 trillion, including about $2.5 trillion between 2020 and 2030.
With the support of developed countries and the private sector, Africa must take ownership and define its energy transition to meet these challenges. The continent has abundant renewable energy resources, potential for green hydrogen production, essential minerals for renewable energy products, and natural capital for carbon sequestration.
Jean-Paul Adam, at the Office of the Special Advisor on Africa (OSSA) said ECA has worked closely with member states to support the green transition through efforts such as the Sustainable Debt Coalition (SDC), and emerging debt-for-nature swaps to close the financial gap. Africa's rich marine ecosystem is also at the centre of concerns, with initiatives such as the Great Blue Wall, which promotes sustainability and job creation.
Stephen Funso of the African Development Bank (AfDB) stressed that adaptation is a priority for Africa. The AfDB's approach is to increase resources for priority sectors. According to Stephen Funso, the Bank will continue to strengthen and mobilize resources in each country. To finance resilience, innovative solutions are the key priority to engage the private sector.
Established by the Economic and Social Council (ECOSOC) of the United Nations (UN) in 1958 as one of the UN’s five regional commissions, the United Nations Economic Commission for Africa’s (ECA’s) mandate is to promote the economic and social development of its Member States, foster intraregional integration and promote international cooperation for Africa’s development. ECA is made up of 54 Member States and plays a dual role as a regional arm of the UN and as a key component of the African institutional landscape.