Page 15 - AfrElec Week 30 2022

AfrElec CLIMATE FINANCING AfrElec

AfDB, IMF stress urgency

of mobilising $1.6 trillion

climate financing for Africa

AFRICA EXPERTS from the African Development mentioning that advanced countries who ben-
Bank (AfDB) and International Monetary Fund efitted from climate-unfriendly policies are
(IMF) stressed the urgency of mobilising climate unwilling to support development in the region.
financing for Africa during the 2022 African Selassie said the findings of the 2022 African
Economic Outlook seminar, hosted by the IMF Economic Outlook were “sobering.”
in Washington, DC on July 25. IMF’s assistant director in the Fiscal Affairs
Participants learnt that African countries department and climate change policy coordi-
need to mobilise $1.6 trillion between 2022 and nator, James Roaf identified adaptation as the
2030 to meet their Nationally Determined Con- biggest issue for Africa.
tributions (NDCs) to fight climate change, the “The African Economic Outlook rightly
AfDB said in a press release. With current trends stresses the need to integrate climate objectives
showing a financing gap of $108bn annually, in overall sustainable development pathways,”
Africa’s NDCs will not be achieved, the develop- Roaf said. “We need to focus on making the
ment bank said. most of the opportunities that the clean energy
According to AfDB acting chief economist transition offers so that climate mitigation and
and vice president Kevin Urama, Africa has huge adaptation policies come hand in hand with ris-
comparative advantages to lead the world in the ing prosperity.”
new green transition, but it lacks the capital to Roaf emphasised the importance of mobilis-
do so. ing the private sector and strengthening regional
Addressing the panel of experts, Urama said trade, with policies such as carbon pricing to
that the structure of climate finance is very com- encourage investment in renewables. He also
plicated and creates a misallocation of resources. suggested improving adaptation incentives by
As a result, “the countries that are receiving cli- reinforcing property rights.
mate financing are the less vulnerable ones,” he In closing, Urama stressed the need for a dif-
noted. ferent approach to solving the climate challenge
Abebe Selassie, director of the African in Africa. “What I see are opportunities to do
department at IMF, spoke about other financ- things differently so that we are not using an old
ing challenges the policymakers are faced with, map to chart a new world,” he said.™

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