Toothless Global Financial System Fuels Africa’s Climate Crisis

As dams and rivers dry up, Kenya will continue to be on the frontlines of a climate crisis unless climate change adaptation and mitigation efforts are escalated. Credit Joyce Chimbi-IPS.

By Joyce Chimbi

NAIROBI, Sep 5 2023 (IPS) - As thousands convene in Kenya’s capital, Nairobi, for the Africa Climate Summit, the first time the African Union has summoned its leaders to solely discuss climate change under the theme ‘Driving Green Growth and Climate Finance Solutions for Africa and the World’, the backdrop is a country on the frontlines of a climate crisis.

The severe, sharp effects of climate change are piercing the very heart of an economy propped up by rainfed agriculture and tourism – sectors highly susceptible to climate change. After five consecutive failed rainy seasons, more than 6.4 million people in Kenya, among them 602,000 refugees, need humanitarian assistance – representing a 35 per cent increase from 2022.

It is the highest number of people in need of aid in more than ten years, says Ann Rose Achieng, a Nairobi-based climate activist. She tells IPS that Kenya is hurtling full speed towards a national disaster in food security as “at least 677,900 children and 138,800 pregnant and breastfeeding women in Kenya’s arid and semi-arid regions alone are facing acute malnutrition. Nearly 70 per cent of our wildlife was lost in the last 30 years.”

Despite Kenya contributing less than 0.1 per cent of the global greenhouse gas emissions per year, the country’s pursuit of a low carbon and resilient green development pathway produced a most ambitious Nationally Determined Contribution (NDC) to cut greenhouse gasses by 32 per cent by 2030 in line with the Paris Agreement.

But as is the case across Africa, there are no funds to actualise these lofty ambitions. Africa needs approximately USD 579.2 billion in adaptation finance over the period 2020 to 2030, and yet the current adaptation flows to the continent are five to ten times below estimated needs. Globally, the estimated gap for adaptation in developing countries is expected to rise to USD 340 billion per year by 2030 and up to USD 565 billion by 2050, while the mitigation gap is at USD 8nd a disincentive for climate finance flows.

“There is a concern that climate finance, if and when provided, will be used to first service Africa’s debt burden. The first step to addressing Africa’s Climate Finance must be action towards debt relief for Africa. Freeing up debt servicing arrangements will release resources for continued development and climate finance purposes,” Kumah explains.

He says there is an urgent need to challenge the existing unfair paradigm for financing by developing countries. It is very expensive for developing countries to borrow for development purposes. Africa must then leverage its natural capital towards seeking innovative financing mechanisms such as green bonds and carbon credits to address its development and climate change challenges.

While developing countries submitted revised and ambitious National Adaptation Plans and NDCs as requested, Anukur says complicated processes to access financing for their climate actions persist. Stressing the need for reforming the international financial architecture, starting with multilateral development banks.

“The 2023 Summit for New Global Financing Pact held in Paris committed to a coalition of 16 philanthropic organizations to mobilize investment and support UN’s SDG priorities by unlocking new investment for climate action in low- and middle-income countries while reducing poverty and inequality,” Anukur observes.

Civil society organizations and activists such as Achieng have expressed concerns that such announcements are insufficient considering the scale of the challenges facing planet Earth. The Summit will have failed if the global financial architecture is not overhauled in line with the needs of the African continent, she says.

Anukur says the Summit must therefore propel Africa to new heights of climate financing to help reduce Africa’s vulnerability to climate change and increase its resilience and adaptive capacity in line with the Global Goal on Adaptation. Ultimately expressing optimism that the opportunity to unlock the potential of climate financing – breaking the shackles of debt and building a climate-resilient and prosperous Africa is, at last, in sight.

IPS UN Bureau Report