In December 2022, in Tangier, Morocco, on the occasion of the 16th capital increase of the African Development Fund (ADF), the African Development Bank and its development partners created a Climate Action Window for low-income countries. This slot covers 37 ADF member states, which are also the world’s most fragile and climate-vulnerable countries.
A recently released report by the United Nations Intergovernmental Panel on Climate Change (IPCC, 2023) confirms that West, East and Central Africa are among the world’s hotspots of human vulnerability to climate change. Nine out of the 10 countries most vulnerable to climate change are in Africa, according to the latest Climate Vulnerability Index released in 2022 by the University of Notre Dame in Indiana, USA. They are the Central African Republic, Chad, Democratic Republic of the Congo, Eritrea, Guinea-Bissau, Liberia, Niger, Sudan, and Zimbabwe.
Africa, which is most affected by climate change, accounts for just 2.8% of global greenhouse gas emissions and pollutes the least, but it is also the continent with the least amount of climate finance, accounting for less than 3% of total global climate finance.
In response to this urgent need to facilitate climate finance flows to support Africa’s development and promote a resilient, low-carbon development pathway, the African Development Fund and its partners have committed a package totaling $8.9 billion for the 2023-2025 financing cycle. Of the package, an increase of 14.24% compared to the previous replenishment of $7.4 billion, $429 million will be allocated as seed money for a new climate change facility, which will amount to up to $13 billion from traditional and non-traditional partners, as well as states and non-states (including the private sector).
“Low-income countries in Africa are the most vulnerable and least prepared to tackle climate change,” World Bank Group President Akinwumi Adesina said at the ADF-16 Replenishment Conference. He said the new funding will support the development of sustainable, climate-resilient and quality infrastructure.
Impact of this new window
The new climate action window is structured around three components: adaptation (75% of resources), mitigation (15%) and technical assistance (10%). It covers six areas of agriculture and food security. Water safety. Climate services and information. Transport and resilient low-carbon infrastructure. green energy. and green finance. The Window’s resources will provide access to climate-resilient agricultural technologies to approximately 20 million farmers in 30 ADF-eligible countries. It also plans to offer weather-linked crop insurance. Restore 1 million hectares of degraded land. Provide sustainable and resilient water, sanitation and health services to an additional 18 million people. and provide renewable energy to an estimated 9.5 million people. The technical support component of this window will help African Development Fund recipient countries adjust their climate policies and strategies, create an enabling environment for climate change investments, and develop viable and investment-ready projects. It will also help you access other global climate finance sources.
“The commitment to provide 40% of the core funding of the climate change allowance and ADF 16 replenishment to climate finance will help build Africa’s resilience to climate change,” said Dr. Adesina after the new allowance was approved.
The ADF Climate Action Window is an extension of the Bank’s existing efforts, including the Africa Adaptation Acceleration Program, launched in 2021 in partnership with the Global Adaptation Center. An ambitious and transformative agenda to accelerate climate adaptation in Africa, the program’s goal is to mobilize $25 billion by 2025. The World Bank, which has committed $12.5 billion to the program, continues to mobilize resources from partners. This funding will accelerate adaptation to climate change by deploying smart digital technologies for agriculture and food security, investing in climate-resilient infrastructure, encouraging entrepreneurship and job creation in climate adaptation and resilience, and supporting innovative finance initiatives.
Anthony Nyong, Director of Climate Change and Green Growth at the African Development Bank, said: “Under the new Strategic Framework on Climate Change and Green Growth adopted by the Board in October 2021, climate change adaptation is our top priority.” “With innovative programs like the Africa Adaptation Program, the Bank is leading the rest of the world on the urgency and importance of investing in climate adaptation in Africa.”
The climate change window will be discussed by central bank governors at the 2023 Annual General Meeting to be held in Sharm el-Sheikh, Egypt, from May 22 to 26 under the theme of “mobilizing private finance for climate change and green growth in Africa.” The meeting comprises the 58th annual meeting of the African Development Bank and the 49th meeting of the African Development Fund, the concessional arm of the World Bank Group.
