The African Development Bank (AfDB) has reassured its commitment of $25 billion in climate finance by 2025 for climate change adaptation plans.
President of the African Development Bank, Akinwumi Adesina, made this declaration during his submission at the recent Climate Ambition Summit organized by Antonio Guterres, UN general secretary, on the sidelines of the 78th United Nations General Assembly (UNGA78) in New York.
Adesina said climate change has devastating impacts on African economies but the continent receives only three percent of total global climate finance.
He said AfDB will support Guterres’ agenda to deliver climate adaptation and early warning systems for all by responding to climate financing challenges.
The AfDB president said the institution has launched several initiatives to expand Africa’s access to financing for climate adaptation and investments.
“The African Development Bank is fully supportive of the United Nations Secretary General’s Early Warning for All initiative and the Systematic Observations’ Financing Facility,” he said.
“Climate change is devastating the economies of Africa. The continent, which accounts for just 3 percent of total emissions globally, loses $7–15 billion annually from climate change, an amount projected to $50 billion by 2030.
Yet, the continent receives just 3 percent of total global climate finance and faces a climate finance gap of $213 billion through 2030. The African Development Bank will provide $25 billion in climate finance by 2025.
“The Climate Development Africa Special Fund, hosted by the African Development Bank, has provided $74 million to support twelve countries and five regional climate centers that serve 27 countries. This supports the countries to address weaknesses in the diversity of climate and weather services and reduce loss and damage from extreme weather events.
“The Bank is supporting climate adaptation in Africa in five major ways. First, we launched the Africa Climate Adaptation Program to mobilize $25 billion in climate adaptation for Africa, together with the Global Center on Adaptation. This is the largest adaptation program in the world.
“To expand access to financing for climate adaptation in Africa, we are supporting countries to develop climate adaptation investment compacts. We launched seven such compacts at the Africa Climate Summit and expect to have more ahead of COP28.
Second, the Bank is implementing a $20 billion Desert to Power program to develop 10,000 MW of solar across eleven countries of the Sahel zone of Africa and provide electricity for 250 million people.
“Third, the Bank has launched a $1 billion Africa Climate Insurance Facility for Adaptation to help insure African countries against extreme weather patterns and catastrophic climate shocks.
“Fourth, the Bank and its partners have launched the Alliance for Green Infrastructure (AGIA) to mobilize $500 million for project preparation and project development on green infrastructure and to mobilize $10 billion of private sector investments across green infrastructure assets in Africa.
“Fifth, the African Development Fund’s newly opened Climate Action Window, with $429 million, will support climate resilience for the 37 low-income countries in Africa.
“It will provide crop and livestock insurance for 20 million farmers, and support 20 million people to access climate information systems. Our goal is to expand the size of the facility to $13 billion.”
