By Aliu Akoshile
“It is instructive to note that under Dr. Akinwumi Adesina’s Presidency, the AfDB Group’s climate finance investments increased geometrically from 9% in 2016 to 55% (provisionally $5.8 billion) in 2023.” – Prof. Anthony Nyong
The 29th Conference of the Parties (COP29) of the United Nations Framework Convention on Climate Change (UNFCCC) ended on Sunday, November 24, in Baku, Azerbaijan’s cold capital city. The summit, which had the theme: “In Solidarity for a Green World,” produced a mixed bag of outcomes in the UN effort to combat climate change around the world.
One of the popular outcomes of the global conference is the resolution on gender action plan, which sought to enhance the participation of women in climate decision-making processes. This resolution was adopted without much fuss. But another resolution on global stocktake, which urged countries to transition away from fossil fuels, was shot down due to lack of consensus.
In another breadth, while the Baku summit finalised and adopted the long outstanding sections of the famous Article 6, which governs international carbon markets, it also adopted the mitigation work programme that demanded the acceleration of global efforts to reduce greenhouse gas emissions. Other exciting resolutions adopted at the summit include the consensus by countries to provide support for loss and damage caused by climate change and the just transition work programme for supporting countries to transition to a low-carbon economy.
Expectedly, the most contentious of the COP29 resolutions was that of climate finance, technically called the New Collective Quantified Goal (NCQG) ostensibly to obfuscate its mischievous intent, as alleged by some negotiators. Before the climate finance negotiations reached its crescendo at the twilight of the summit, developing countries had advertised their desire to get the developed nations to commit a whopping sum of $1.3 trillion annually from 2025. This projection had received the tacit endorsement of the G20 leaders who met in Rio De Janerio concurrently as the COP29 was holding in Baku.
But after two days of tension-soaked, high-level negotiations, the developed nations only agreed to mobilise at least $300 billion a year in climate finance by 2035. The wide gulf between the amount asked for, and the figures adopted, however left many countries from the global South infuriated and disappointed, not the least the AU countries that had converge on Baku in “solidarity for scaling up climate finance for Africa.”
Arguably, the demand for $1.3 trillion was a fair and rational goal when juxtaposed against the peculiarities of the climate challenges faced by Africa’s 1.4 billion population as well as the people from the global South as a whole. Notwithstanding the disappointment over the summit’s resolution on climate finance, Africa’s 54 independent countries have a dependable ally in the Africa Development Bank Group (AfDB), the continent’s premier multilateral development finance institution.
The AfDB, under its visionary President, Dr. Akinwumi Adesina has been playing pivotal roles in supporting African countries on climate actions, capacity building, and adaptation resilience for sustainable growth on the continent. The AfDB’s Group transformative initiatives for tackling climate change and replicating remarkable growth across the African landscape are being driven by the Bank’s Climate Change and Green Growth Department, headed by the affable and cerebral climate scientist, Professor Anthony Nyong. Through his Department, the Bank has been building on solid comparative advantages in discharging its commitments on green growth projects in Africa.
Prof Nyong explained: “Over the last ten years, the African Development Bank Group played a critical role in addressing climate change and promoting green growth in Africa while ensuring that development across the continent drives growth that is not only economically empowering but also, climate-friendly, environmentally sustainable, and socially inclusive. The Bank has continued to make progress in driving Africa’s transition towards greater climate resilience and a low-carbon development path. In this regard, the Bank’s new Strategic Framework on Climate Change and Green Growth (2021-2030) focuses on four key priority pillars, namely, adaptation, climate mitigation, finance, and enabling environments.
Related Posts
One remarkable sign of the phenomenal achievements being recorded by AfDB is the surge in the percentage of its projects that are based on climate-informed designs, from 77% in 2016 to 97% in 2023 with a clear goal to achieve 100% by 2025. And whereas the Bank is directing 40% of all investment to climate finance, Prof. Nyong says it is instructive to note that under Dr. Akinwumi Adesina’s Presidency, the AfDB Group’s climate finance investments increased geometrically from 9% in 2016 to 55% (provisionally $5.8 billion) in 2023. This enabled the Bank to achieve significant progress in advancing climate actions and institutionalising a climate mainstreaming approach within its operations across Africa. According to the Director of CC&GG, the Bank Group’s new Country Strategy Papers (CSPs) and Regional Integration Strategy Papers (RISPs) have achieved 100% integrated climate and green growth criteria since 2021. The Bank has also significantly scaled up climate finance in Africa from both internal and external sources.
However, despite the establishment of dedicated vertical climate and environmental finance institutions, the AfDB’s main source of climate finance is its own internal resources. Explaining the funding mix, Prof. Nyong says 80% of the Bank’s climate financing resources are internal, while external resources account for the remaining 20%. Internally, he says, the Bank’s climate finance is provided through its statutory financing mechanisms, such as the Africa Climate Change Fund, the ClimDev-Africa Special Fund, the Sustainable Energy Fund for Africa, the African Water Facility, the Urban and Municipal Development Fund, and the Africa Circular Economy Fund, while the external sources include the Global Environment Facility, Green Climate Fund, and Climate Investment Fund.
In a remarkable stride, the Bank has increased its cumulative climate finance from about $500 million in 2008 to about $36.2 billion between 2011-2023. With this, the Bank is helping to set Africa on the low carbon and climate-resilient development pathways being witnessed across the continent. These include Kenya’s Lake Turkana Wind Power Project, which is one of the largest wind farms in Africa. The project aimed to increase Kenya’s renewable energy capacity and reduce greenhouse gas emissions. Also supported is the Climate-Resilient Water Management in Kenya’s Arid Lands. The project aimed to improve water availability, enhance livelihoods, and promote climate resilience in the East African country.
In Nigeria, AfDB supported the federal government to implement climate-resilient agriculture practices in the savannah region. The project aimed to improve crop yields, enhance soil fertility, and promote conservation agriculture. The Bank also provided financing for the development of renewable energy projects in Nigeria, including solar and wind power. The projects aimed to increase Nigeria’s renewable energy capacity and reduce dependence on fossil fuels.
The Egypt’s Renewable Energy Initiative, aimed at increasing the country’s renewable energy capacity and reducing dependence on fossil fuels, has received the support of AfDB. At another level, the Bank supported the Egyptian government to implement climate-resilient agriculture practices in the Nile Delta. The project was aimed to help improve crop yields, enhance soil fertility, and promote conservation agriculture.
The AfDB has also supported the establishment of Rwanda’s Green Fund, which aims to promote green growth, reduce poverty, and enhance environmental sustainability. The Bank also supported the Rwandan government to implement climate-resilient agriculture practices, including conservation agriculture and agroforestry.
In Cote d’Ivoire, AfDB provided financing for the development of renewable energy projects, including solar and biomass energy, and also supported the Ivorian government to implement climate-resilient cocoa production practices, including agroforestry and conservation agriculture. Similarly, the Burundian government enjoyed AfDB’s support to implement climate-resilient agriculture practices, including conservation agriculture and agroforestry, aside from providing financing for the development of Burundi’s Rural Electrification Project, expecially the off-grid solar energy.
In the Southern Africa region, the AfDB provided financing for the development of renewable energy projects under South Africa’s Renewable Energy Independent Power Producer Procurement (REIPPP) Program, including solar and wind energy. The Bank also supported the South African government to implement climate-resilient water management practices, including water conservation and efficient use.
In addition to country’s specific support, the AfDB has embarked on ambitious flagship projects, such as the Desert to Power (D2P) initiative aimed at promoting the development of renewable energy and providing access to electricity for 250 million people across 11 Sahel countries by 2030, thereby transforming the Sahel region from a zone of vulnerability to a hub of economic opportunities.
In the same vein, the Bank is a key partner in the Great Green Wall (GGW) initiative, a massive project targeted at combating desertification and promoting sustainable development by creating a 15-kilometer-wide belt of vegetation and green infrastructure from Senegal in West Africa to Djibouti in East Africa.
Beyond these and other projects being supported across the continent, the AfDB is championing a wide range of flagship initiatives to strengthen climate-resilience in Africa. These include the Africa Adaptation Acceleration Program, the African Financial Alliance on Climate Change, the Africa NDC Hub, the Adaptation Benefits Mechanism, and the Alliance for Green Infrastructure in Africa, among others.
Moreover, the Bank, as part of its new climate change and green growth policy, strategy, and action plan, aims to provide $25 billion in climate finance by 2025. To this effect, the Bank Group has expressed commitment to aligning all its new operations with the goal of Paris Agreement by 2025, so as to catalyse the growth of the Africa’s share of global climate finance from the current 3% to 10% by 2030.
The AfDB surely has a critical role to play in supporting African countries to realize their climate actions post-COP29. By upscaling the provision of financial, technical, and advisory support, the AfDB can continue to support African countries to transition to a low-carbon, climate-resilient economy. The Bank’s support is critical to enabling African countries to achieve their NDCs, build their resilience to the impacts of climate change, and promote sustainable development.
Akoshile is the editor-in-chief of NatureNews.
