African Development Bank announces $25 billion pledge to boost climate finance in Africa

President of the African Development Bank (AFDB), Akinwunmi Adesina, has announced a pledge by the AFDB to allocate $25 billion in funding to Africa’s Climate Fund over the next 27 years.

This ambitious financial commitment he said underscores the AFDB’s dedication to advancing climate finance initiatives in Africa, with the goal of expediting the transition to cleaner and more sustainable energy sources.

In his address at the ongoing African Climate Summit in Kenyasummit, President Adesina stressed the pressing need for concrete actions at both the national and continental levels to address climate adaptation.

The AFDB’s substantial financial pledge is intended to bolster these efforts. He emphasized, “At the national level, we must accelerate actions on climate adaptation, and that is why the African Development Bank has committed to providing $25 billion in climate finance by 2025.”

One of the prominent initiatives spearheaded by the AFDB in partnership with the Global Centre on Adaptation is the African Adaptation Acceleration Program. This program is recognized as the world’s largest climate adaptation initiative, highlighting Africa’s resolute commitment to tackling climate challenges and fortifying its resilience.

President Adesina further underscored the paramount importance of unlocking Africa’s abundant renewable energy potential. The AFDB is actively implementing a $20 billion strategy to harness solar power, aiming to provide electricity to approximately 250 million people. He stressed the essence of supplying every household, school, and healthcare facility in Africa with stable, affordable, and reliable energy.

However, President Adesina advocated for a pragmatic approach, acknowledging that Africa should harness its natural gas resources in conjunction with renewable energy sources to sustainably meet its escalating energy demands.

The African Climate Summit has set three crucial climate finance objectives: increasing funding, directing resources to specific needs, and offering more affordable financing with a higher risk tolerance. Climate change presents formidable global challenges, and Africa confronts unique climate-related threats, including droughts, desertification, cyclones, and their associated consequences, such as displacement, migration, and food crises.

The AFDB’s significant financial commitment to Africa’s Climate Fund signifies a pivotal stride in the region’s battle against climate change, the alleviation of its impacts, and the pursuit of a more sustainable and resilient future.

Source: Ghana Business

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