Africa is struggling to finance its programme to mitigate the impact of climate change, it emerged at the African Development Bank (AfDB) meetings yesterday.
Negotiations to establish the global climate fund that was pledged at the UN climate conference in Copenhagen is expected to reach a climax ahead of the next UN meeting in South Africa at the end of this year.
This would leave the African green fund with a yet-unspecified share of the $100 billion that was committed in Copenhagen two years ago, but as one AFDB official said: “Africa needs these funds yesterday”.
Negotiations towards the set-up of the fund have already suffered delays, while economic losses in Africa as a result of climate change may be equivalent to 1.5- 3% of GDP by 2030, according to models quoted by AfDB officials.
The cost of putting Africa on a low-carbon growth path with significant emission reductions is estimated at about $22-30 billion per year by 2015 and $52-68 billion per year by 2030, said Aly Abou-Sabaa, chairman of the AfDB committee on climate change.
AfDB says it is contributing $3 - $4 billion annually to combat climate change. “We have to strike a balance between the need to grow and the need to pursue a low carbon intensive path,” Abou-Sabaa said.
“The support for Africa is very critical,” Ken Johm, manager of the natural resources and environment division at the AfDB, told Emerging Markets.
Abou-Sabba said countries were moving at different speeds towards a low carbon economy. “You have middle income countries, such as South Africa, Egypt, Morocco and others that are more advanced and better placed in the energy sector.
“But if you look at countries such as Nigeria, or certain parts of the Congo Basin where fuel has to be flown by plane, the cost of the kilowatt of energy is totally unacceptable, how can Africa develop like this?” he asked.
Johm stressed that Africa was the continent with the least amount of carbon emissions in the world, but the one that “suffers the most for its consequences”.
In East Africa, major periodic drought and flood years were found to have economic costs equivalent to almost 10% or more of GDP, and because of their regular frequency, have long-term impacts on growth, the bank said. “We are the least prepared to deal with this threat,” Johm said.
The Congo Basin is the world’s second largest forest reserve after the Amazon. “We have something to offer” in exchange for financial support, which is the conservation of the rainforest. “Protecting the forest will help mitigate the impact” of carbon emission and their impact on climate change. “The world has to help,” he said.
The context however does not look very supportive, as most economies in the most industrialized countries are battling with their deficits and debt issues. “The state of the world economy is indeed a risk. But it has to be measured against possible consequences. If we do not do it now, it is going to cost you a lot more in 10 years’ time,” said Johm.