AU Leaders Push Structural Reforms on Climate Finance

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“We are meeting at a moment when global dynamics around energy security, fossil fuel phase-out, critical minerals, industrialisation, and climate finance are intensifying,” said Mr. Louis Cheick Sissoko, Presiding Officer, African Union Economic, Social and Cultural Council (ECOSOCC), during the 39th Summit of the African Union, in Addis Ababa.

The African leaders are meeting against a backdrop of a continued security crisis in Sudan and the Eastern Democratic Republic of the Congo, floods affecting 1.3 million people in Southern Africa, and a raging drought across East Africa.

Emphasizing the need to move from declarations to structural reforms on financing, green industrialization, and economic sovereignty, Mr. Sissoko added that Climate and energy diplomacy is now playing a decisive role in shaping Africa’s development pathways.

“It is determining what kinds of industries are possible, what forms of energy are considered legitimate, and what kinds of finance are accessible, on what terms, and for whose benefit,” he added.

Moreover, experts, policy makers, and business groups are urging the commission to shift toward stronger continental economic systems under Agenda 2063, prioritizing water security, climate resilience, infrastructure, and value addition in energy and critical minerals.

Addressing the Union during the summit, Abiy Ahmed Ali, Prime Minister, highlighted that global development pathway has come at immense environmental cost – costs borne by communities far beyond those responsible.

“Therefore, climate action must be anchored in justice and equity, aligning finance, technology, and partnerships to enable Africa to thrive,” he said.

He added that in this spirit, Ethiopia hosted the Second African Climate Summit, “and we are preparing to host COP32 – ensuring Africa speaks with one voice and presents solutions to the globe.”

Moreover, President William Ruto of Kenya emphasized that Africa cannot afford to wait for alignment elsewhere and must lead by placing climate priorities at the centre of its economic planning and investment decisions.

“The Accelerated Partnership for Renewables in Africa and the Africa Green Industrialisation Initiative are some of the practical vehicles for delivery, supported by the African Continental Free Trade Area,” he said.

He further noted that the Green Industrialisation Initiative secured commitments of $100 billion from African financial institutions at the last Africa Climate Summit.

Highlighting the reduction in external funding, Mahmoud Ali Youssouf, Africa Union Commission chairperson, reminded the commission that mobilizing domestic resources to finance the programs of the continent is no longer optional.

After contributing almost nothing to the crisis, Africa faces faster-than-average warming. Adaptation must be a priority.

According to Antonio Guiterres, UN Secretary General, this requires developed countries to triple adaptation finance, mobilising $1.3 trillion a year for developing countries by 2035.

“Whenever decisions about Africa and the world are on the table, Africa must be at the table. The absence of permanent African seats in the Council is indefensible,” he said.

As the summit wears on, it’s clear that the industrialization of the continent and the transformation of agriculture are crucial.

“This will only be possible by developing Africa’s energy potential and by providing the continent with high-performing infrastructure,” said Guiterres.