Africa needs more than COP29 to address climate change
Supporting global financial reforms, embracing domestic finance, and exploring market and private solutions hold greater promise.
It is always puzzling to understand the immense hype surrounding the Conferences of the Parties (COPs), the annual United Nations Climate Summits. Back in 2009, Barack Obama had just been elected US president. His arrival in Copenhagen, the host city of COP15, brought so many expectations. Some would argue that despite his star power, COP15 only managed a last-minute deal to save face.
Despite the complexity of the COP, every year, it is heralded as a crucial juncture in the ongoing battle against climate change. However, it consistently falls short of meeting the expectations of those advocating for swift action in light of the stark warnings presented by scientific research. A recent comprehensive assessment of planetary health, unprecedented in its scope, sounded the alarm that Earth is surpassing safe thresholds. This begs the question: why are politicians and policymakers not responding with a comparable sense of urgency?
Once again this year, representatives from over 198 countries are gearing up to head to Baku, Azerbaijan, to push forward climate action with their usual energy and enthusiasm – perhaps a good thing as the daunting nature of the process makes it only possible for optimists to endure the associated slow progress.
While it could be credited with enabling incremental change, it falls short of achieving the transformative change demanded by science and activists. Worst still, its ability to deliver what Africa needs regarding financial solutions to address the urgent impacts of climate on its people and communities is limited.
The ability of COP29 to deliver what Africa needs regarding financial solutions to address the urgent impacts of climate on its people is limited
Lasting solutions may hinge on ongoing reforms of the International Financial System
A separate discussion on reforming the international financial system, making it fairer and more accessible to African countries, enhancing its ability to restructure current debts, and calling for a global resilience fund might hold more promise.
Development finance is under meaningful and potentially impactful reform for the first time. After so many years, the World Bank, IMF and regional development banks have opened up for reforms.
In this process, Africa is asking for a greater say in the Bank's Board, the prioritisation of the development agenda and investment in climate change. And there has been significant progress in this direction. Most of the current reforms of the World Bank are centred around making climate a key priority.
African countries have struggled to access the IMF’s special drawing rights (SDRs). Current reforms might make it easier for African countries to use this tool. ‘In my recent discussions with international officials, a consensus has emerged on four key areas of IMF reform: lending instruments, issuance of special drawing rights (SDRs), addressing debt distress, and governance reforms,’ writes President Ruto of Kenya in a blog post in April 2024.
Elsewhere, there is a call for better engagement with credit rating agencies, which unfairly rate African economies and make Africa a less attractive investment destination as well as borrowing from international financial institutions challenging. Imagining increased investment; this would mean more money infused in resilient growth, assuming greater transparency and accountability in the use of public funds.
Domestic solutions should be prioritised
There is a lot of focus on holding Northern partners accountable for paying the climate bills. While it is not a wrong argument, the COP process is slow and unable to deliver quickly to compensate for the lost time and current damages resulting from climate change. Instead, African countries should prioritise innovative and market-driven tools to build resilience and prevent climate-related shocks on their people.
One important area is the better collection and use of tax revenues. For many African countries, taxes are the primary revenue source for addressing national priorities. If this money is collected transparently and used effectively, it can go a long way. However, corruption and mismanagement are holding back progress. It is crucial for governments to take action rather than wait for foreign help. National budgets can be more effective than Official Development Assistance in delivering adaptation benefits.
Another important area is the nature economy which represents a significant growth opportunity for many African countries, although the exact value is not known. Rwanda, for example, has made ecotourism a central part of its planning and has seen great benefits from it. It is now using the money to build resilience and provide basic services to its people. Many African countries can strengthen their ecotourism, but it requires a clear vision and persistence to translate it into action.
In June 2024, there was a meeting with Minister Stephanie Mbombo, the former Minister of the New Climate Economy in the Democratic Republic of Congo (DR Congo) and Mongabay Africa. During an hour-long discussion in her office, Minister Mbombo explained the opportunities in the carbon market and how the DR Congo could utilise them to stimulate its economic growth. She also discussed the peatland economy and other strategies that DR Congo was planning to implement to turn environmental challenges into opportunities for economic growth and poverty reduction.
‘Africa’s vast forests, such as the Congo Basin rainforest, the Guinea-Congo forest, the East African Coastal Forest, the Miombo woodlands, and the Sudanian Savanna, have a significant role in the global carbon cycle as carbon sinks. As such, these landscapes have the potential to play a major role in carbon trading,’ argued Mthuli Ncube, Zimbabwe's Minister of Finance, Economic Development and Investment Promotion, in a blog post on the World Economic Forum in February 2024.
Sustainable climate finance in Africa relies on effectively utilising market mechanisms and enhancing private sector investment in this evolving climate economy.
While it is important to address climate injustice and other legitimate inequality-related issues at COPs, Africa should refrain from presenting itself as a victim. Instead, it should demonstrate strong leadership, emphasise the potential of its climate economy, and increase investment in the continent's green economy.
Depending solely on foreign help reflects a lack of foresight and leadership, particularly among those entrusted with governance
As a global common good, solving climate change sustainably requires collaborative action. Nevertheless, it is imperative for African governments and leaders to actively seek innovative and viable strategies to protect and enhance the welfare of their citizens. The pressing need for Indigenous solutions is further underscored by the severe impact of climate variabilities, which often result in loss of life and extensive property damage, as seen in the Sahel, East, and Southern Africa this year. Depending solely on foreign help reflects a lack of foresight and leadership, particularly among those entrusted with governance.
In conclusion, it is important to acknowledge the significant role that the COP plays in addressing climate change. However, it is equally crucial to prioritise efforts aimed at comprehensively reforming the international financial infrastructure to ensure fair and just treatment for Africa, leveraging domestic resources, and pursuing market solutions and private sector funding.
Image: Climate Change, Agriculture and Food Security West Africa/Flickr
