As the world gears up for the pivotal COP29 climate conference, the urgent need for increased public finance from the global north to address climate adaptation in Africa has never been more pressing. However, the finance debate must go beyond the immediate needs and tackle the systemic biases that have long plagued the continent, driving up borrowing costs and exacerbating its climate vulnerability.

Empowering Africa to Confront the Climate Crisis on Its Own Terms

Bridging the Climate Finance Gap

The African Development Bank estimates that Africa requires between US$1.3 trillion and US$1.6 trillion in total climate financing every year between 2020 and 2030 to meet its commitments to reduce greenhouse gas emissions. Yet, the Global Center for Adaptation estimates that Africa needs at least US$52.7 billion annually for adaptation, a figure that could rise to US$106 billion due to data gaps and lack of transparency. Alarmingly, only about half of the climate finance received by Africa in 2022 was for adaptation, with the rest focused on mitigation or a mix of both, in line with the global north's agenda.

Loans or Grants: The Debt Trap Dilemma

Multilateral financial institutions have provided US$8.33 billion to Africa in 2022 for climate action, but a staggering US$5.4 billion of this was in the form of loans, adding to the continent's external debt burden, which reached US$1.12 trillion in 2022. African countries' debt repayments are now twice what they receive as climate finance, further exacerbating the financial strain. The United Nations Framework Convention on Climate Change clearly states that developed countries are responsible for financing climate adaptation in vulnerable regions, yet the reliance on loans only enriches global financial institutions at the expense of African nations.

Addressing Systemic Biases and Barriers

African negotiators must confront the structural barriers that limit their access to climate finance. Biased risk perceptions by credit rating agencies and restrictive prudential rules from the Bank for International Settlements have proven unfavourable to the transformation of African economies. Additionally, the distinction between development finance and climate finance has become an impediment to progress, distracting from the need to promote market incentives and private sector investment in climate adaptation.

Harnessing Regional Cooperation and Carbon Markets

To overcome these challenges, Africa must leverage regional climate finance platforms and set up cross-border climate change adaptation projects that benefit multiple countries. This will allow the continent to pool resources, coordinate demands, and negotiate better terms for climate finance. Furthermore, Africa's strong potential to use carbon markets to finance climate initiatives, provided it has control over them, presents an additional funding opportunity for adaptation efforts.

The Path Forward: Bold Leadership and Unified Action

This pivotal moment demands bold leadership and a united front from African nations. At COP29, African negotiators must secure the commitments and resources needed to build a sustainable future, rewriting the rules that have long disadvantaged the continent. By addressing systemic biases, promoting regional cooperation, and harnessing the power of carbon markets, Africa can unlock its climate resilience and chart a path towards a more equitable and prosperous future.