As the world gears for COP 29 in Baku Azerbaijan, climate finance is the topic every African policymaker, climate change lobbyist, and activist is talking about. African countries, despite being the least emitters are the worst affected by the effects of climate change and are far behind in terms of adaptation and mitigation, owing to the lack of financial capability.
In 2009, during the UN Climate Summit in Copenhagen (COP15), developed countries pledged to mobilize $100 billion annually by 2020 to support climate action in developing nations. This funding, meant to help vulnerable countries adapt to climate impacts and transition to cleaner economies, was reaffirmed in the 2015 Paris Agreement.
However, meeting this target has proven challenging. By 2020, climate finance had only reached $83.3 billion, falling short of the goal. The lack of transparency regarding what qualifies as climate finance, combined with a heavy reliance on loans rather than grants, has drawn criticism. Furthermore, the bulk of the finance has been directed toward mitigation (reducing emissions) rather than adaptation, despite the urgent need for funding to help countries cope with climate impacts.
At COP26 in Glasgow (2021), developed nations committed to reaching the $100 billion target by 2023. There is also a growing focus on post-2025 climate finance, with calls for more ambitious targets and increased funding for adaptation and loss and damage—a concept that acknowledges the irreversible impacts of climate change, particularly for vulnerable nations.
The most significant win for Africa at COP29 in Baku is expected to revolve around securing robust climate finance and advancing the New Collective Quantified Goal (NCQG) operationalization.
African nations are advocating for more substantial financial support from developed countries to implement their Nationally Determined Contributions (NDCs), as well as for adaptation and mitigation measures. Given the massive financial gaps that have hampered the continent’s ability to address climate impacts, a favorable finance deal at Baku would be crucial to help Africa better cope with climate change. This could include better access to funds for clean energy, adaptation projects, and capacity building.
Another key focus is the development of mechanisms around loss and damage, which are critical for addressing climate-related disasters such as floods, droughts, and heatwaves that disproportionately affect Africa. The African Group of Negotiators is pushing for meaningful progress in making the Loss and Damage Fund fully operational.
Africa is also looking to strengthen its participation in the voluntary carbon markets (VCM), with projects like forestry and land use, and clean cookstove initiatives playing pivotal roles. These projects, though already significant across the continent, need better regulation, transparency, and equity in revenue sharing to truly benefit local communities.