By Faridat Salifu
Sub-Saharan African countries received the sum of $16.3billion funding for climate financing from multilateral banks in 2022.
This is contained in a recent report, which revealed that multilateral development banks (MDBs) mobilized a whopping $60.7billion in climate finance for developing nations last year.
The recently published report is the result of a compilation of data from several multilateral development banks (MDBs), including the African Development Bank (AfDB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the Inter-American Development Bank (IDB).
The report indicated that the banks provided $60.7 million in climate finance to low and middle income economies, which is a 46% increase compared to 2019, out of which sub-saharan African countries received $16.3billion.
“In 2022, global climate financing reached almost $100 billion, up from $82 billion in 2021. Sub-Saharan African countries received $16.3 billion of that funding, while developing countries in Europe received over $36 billion,” the report read in part.
According to the report, out of the $60.7 billion allocated to low-income economies, $38 billion (63%) was specifically dedicated to climate change mitigation, which shows a strong commitment to tackling climate challenges and supporting sustainable development worldwide, while 37% was allocated for climate change adaptation.
According to the report, these banks granted $60.7 million in climate finance to low and middle income economies, up 46% on 2019 volumes.
The funding was allocated in particular, to the development of transport that emits less CO2, agriculture, agroforestry and energy.
At the same time, $22.7 billion was also earmarked for adaptation to climate change, including water and sanitation systems, manufacturing and coastal infrastructure for countries most exposed to flooding and rising sea levels.
“External climate funds, notably the Climate Investment Fund (CIF), the Global Environment Facility (GEF) and the Green Climate Fund (GCF), remain the main source of co-financing,” says the AfDB’s Director for Climate Change and Green Growth”, Anthony Nyong.
Nyong pointed out that the private sector must increase its contribution to global climate finance.
“The African Development Bank is committed to bringing together national and international partners to reduce the risks associated with private capital and to unlock the trillions of dollars needed to finance the fight against climate change in Africa”, he stated.
The report also stated that in 2022, the private sector mobilised $69billion compared with $41billion in 2021. For its part, the AfDB increased its climate financing from $2.1 billion in 2020 to $2.4 billion in 2021, and $3.6 billion in 2022.
“The Pan-African bank’s allocation is almost entirely channelled to low and middle-income economies. These commitments fall far short of Africa’s needs in terms of climate financing”, the report added.