Collaborative research by Climate Policy Initiative, The Children’s Investment Fund Foundation and FSD Africa has stated that Africa needs approximately $2.8 trillion, or $250 billion each year to implement the Nationally Determined Contributions (NDCs) between 2020 and 2030.
The collaborative study shows that total annual climate finance flows in Africa for 2020, domestic and international, were only USD 30 billion, just 12% of the amount needed.
According to the study, the financing gap in Africa is significant as countries in the region together have a GDP of $2.4 trillion (World Bank 2021), implying that 10% of Africa’s current annual GDP needs to be mobilized above and beyond the current flows every year for the next 10 years.
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Some key takeaways from the analysis include that Africa needs approximately $2.8 trillion between 2020 and 2030 to implement its NDCs and out of this, $2.5 trillion must come from international public sources and the domestic and international private sectors. These needs represent 10 per cent of Africa’s total annual GDP.
The research found that South Africa, Ethiopia, Nigeria, and Egypt have the highest needs per year, together representing almost $151 billion per year. It also found that South Africa and Ethiopia have needs of 32% and 23% of their GDP, respectively, while Nigeria’s needs ($12 billion) are only 3% of the national GDP.
The research further showed that adaptation accounted for only 24% of total climate finance needs identified, despite Africa being highly vulnerable to climate change and calls for a better balance of finance between mitigation and adaptation.
Story was adapted from Independent.