By Kitab Unango Baku, Azerbaijan, 13 November 2024: At the COP29 climate conference in Baku, Azerbaijan, the African Export-Import Bank (Afreximbank) is challenging world leaders to rethink climate finance goals, stating that the longstanding $100 billion annual target for global climate funding falls drastically short of the resources needed to protect Africa from intensifying climate impacts. The bank, which has long advocated for African economic development and equitable energy access, is no
By Kitab Unango
Baku, Azerbaijan, 13 November 2024: At the COP29 climate conference in Baku, Azerbaijan, the African Export-Import Bank (Afreximbank) is challenging world leaders to rethink climate finance goals, stating that the longstanding $100 billion annual target for global climate funding falls drastically short of the resources needed to protect Africa from intensifying climate impacts.
The bank, which has long advocated for African economic development and equitable energy access, is now calling for a New Collective Quantified Goal on Climate Finance (NCQG), highlighting that Africa requires between $1.3 trillion and $1.6 trillion annually to meet its adaptation and mitigation needs through 2030.
The $100 billion target, set in 2009 to support climate adaptation and mitigation for developing countries, remains largely unmet and inadequate in the face of escalating climate impacts on Africa and other vulnerable regions.
Afreximbank’s President and Chairman of the Board, Prof. Benedict Oramah, expressed at COP29 that Africa, contributing less than 4% to global emissions, bears the brunt of climate change with disproportionate consequences.
"Africa faces staggering economic and environmental challenges from climate change, yet funding remains minimal. The $100 billion pledge is outdated and insufficient," Prof. Oramah remarked during African Day at COP29’s African Union Pavilion.
"If we are to secure a sustainable and just future, we need a far more ambitious climate finance target, one that aligns with the realities Africa faces and the resources it urgently needs." He added.
According to Afreximbank, climate-related costs in Africa have escalated to unprecedented levels, with financial needs growing significantly as climate change disrupts agriculture, energy infrastructure, water systems, and more.
The latest figures from Afreximbank indicate that African countries need at least $1.3 trillion annually to mitigate and adapt to climate change, indicating that without adequate support, the bank warns, African nations face mounting climate-related displacement, food insecurity, and potential destabilization as climate effects worsen.
A key focus of Afreximbank’s presence at COP29 is to push for the operationalization of the Loss and Damage Fund, established to provide financial assistance to countries experiencing irreversible climate losses.
Prof. Oramah emphasized the urgency of ensuring that this fund becomes fully functional and readily accessible.
“We need the Loss and Damage Fund to deliver immediate financial support to African countries affected by climate change,” he stated. “This is essential not only for resilience and adaptation but for protecting development gains that are now at risk of being reversed due to climate-related losses.”
Afreximbank’s climate finance strategy centers on mobilizing a mix of funding solutions, including green bonds, concessional loans, and carbon markets, to bridge Africa’s climate finance gap.
The bank is also advocating for transparent and accessible finance mechanisms that ensure resources reach communities directly affected by climate change, strengthening local resilience while aligning with broader development goals.
Additionally, Afreximbank is urging that climate finance align with the African Union’s Nairobi Declaration and COP28’s climate actions.
Prof. Oramah noted the importance of these frameworks, alongside the African Continental Free Trade Area (AfCFTA), to drive sustainable economic integration and address energy poverty.
"A just energy transition for Africa is essential not only for achieving climate goals but for fostering inclusive development across the continent," Prof. Oramah stated. "By responsibly developing Africa’s abundant natural resources, we can reduce energy poverty, facilitate trade, and position the continent for sustainable growth."
At COP29, Afreximbank is amplifying the message that Africa’s energy transition must be equitable and responsive to the continent’s unique needs.
Prof. Oramah underscored the importance of adequate infrastructure investments that can enable Africa to shift from fossil fuels to greener energy sources without compromising on economic stability and development.
In his speech, he highlighted that such infrastructure investments would support Africa’s long-term economic goals, while addressing immediate climate vulnerabilities.
During the conference, Afreximbank is also involved in key discussions on how to meet Africa’s climate finance requirements, including a session titled “Financing a Green Transition in Solidarity.”
The session, scheduled for 14 November, features prominent voices in African development such as Prof. Oramah; Ambassador Josefa Sacko of the African Union; and Claver Gatete of the Economic Commission for Africa.
Their aim is to advance concrete proposals for scaling up climate finance initiatives to meet Africa’s ambitious adaptation and mitigation targets.
In addition to its participation in COP29, Afreximbank is co-hosting a “Sustainable Trade Africa” event on 15 November, which aims to support African countries’ efforts to link climate action with trade goals.
This event will convene leaders from trade and investment sectors, including figures like Yoofi Grant of Ghana Investment Promotion Centre, to discuss strategies for fostering sustainable trade that can drive climate-resilient growth in Africa.
Afreximbank’s advocacy at COP29 is grounded in its commitment to ensuring that African nations receive the resources they need to adapt to climate impacts and pursue a fair energy transition.
As the bank calls for ambitious new climate finance goals and advocates for accessible, community-centered financing mechanisms, it seeks to ensure that Africa’s unique needs remain central to the global climate finance conversation.
Through these efforts, Afreximbank is working to not only address Africa’s pressing climate challenges but to support its long-term vision for sustainable and inclusive growth.