African Development Bank Champions Climate Finance and Natural Capital at COP29

By Edson Baraukwa | Africa Guardian

The global climate conference, COP29, opens this Monday in Baku, Azerbaijan, with African nations intensifying efforts to combat climate change. The African Development Bank (AfDB) is leading this charge by advocating for more climate financing for Africa and introducing innovative approaches to account for Africa’s “green wealth” in national economies.

Following COP28’s historic establishment of the Loss and Damage Fund, this year’s summit—billed as the “Finance COP”—aims to set new climate finance targets. Africa, which possesses significant carbon-sequestering forests and a wealth of green resources, has immense potential to drive sustainable energy access. However, sub-Saharan Africa currently receives less than 3% of global climate finance, constraining its capacity to implement National Adaptation Plans and meet its Nationally Determined Contributions under the Paris Agreement.

“Africa should not be greenly poor; it should be greenly wealthy through proper valuation of its contributions to global environmental health,” said African Development Bank Group President Akinwumi Adesina in a preparatory meeting with African ministers across finance, economy, climate, and environmental sectors ahead of COP29.

To achieve this “green wealth,” Adesina is calling for a recalibration of African GDP to include natural assets like forests and carbon sinks. According to preliminary estimates, this recalibration could have raised Africa’s nominal GDP by $66.1 billion in 2022 alone—a 2.2% increase, with six Congo Basin countries accounting for 64% of this rise. Such an approach could enhance Africa’s debt sustainability and its capacity to attract further financing for green development.

The AfDB will launch its “Measuring the Green Wealth of Africa” initiative at COP29, which aims to redefine African economies by incorporating natural capital. The Republic of Congo and Kenya are leading this push and intend to present the outcomes of COP29’s discussions at the African Union Summit next year.

Closing Africa’s Climate Finance Gap

Africa hosts 9 out of the 10 most climate-vulnerable nations but receives only 3-4% of global climate funding. To address this, the AfDB’s Climate Action Window—part of its African Development Fund—will convene a session on November 13, focusing on ways to increase climate finance for vulnerable African communities.

Key events at COP29 include a high-level session on Measuring the Green Wealth of African Nations, attended by heads of state, followed by the launch of a report on “Green Wealth.” Additionally, the Bank will host a rallying event for Mission 300, a partnership with the World Bank and others aimed at connecting 300 million Africans to electricity by 2030.

In another side event, the African Union and Tanzania will address the clean cooking crisis with a call for African leadership, highlighting the need for policy action, innovative collaborations, and significant financial investment to secure sustainable clean cooking solutions across the continent.

For more information on the African Development Bank’s COP29 initiatives and to explore the Africa Pavilion, which amplifies Africa’s voice in climate discussions, visit the COP29 microsite.

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