Rising Urgency: Africa’s Demand for Adaptation Finance Reconstitution

In the heart of Marrakech, where seven years ago, the world witnessed the historic COP 22, the annual World Bank/IMF meeting has taken on newfound significance. This gathering is no longer just another routine event; it stands at the crossroads of hope and despair. The Pan-African Climate Justice Alliance’s voices resonate with urgency and frustration, as they hold a roundtable on adaptation finance on the sidelines World Bank meeting on the 7th and 8th of October in Marrakech, Morocco.

Across Africa, there is a growing consensus that the current approach to climate financing is falling short of the mark. The creation of the Green Climate Fund was supposed to address the inadequacies of multilateral banks like the World Bank, which often approached climate finance with a business-oriented mindset. Unfortunately, much of their financing comes in the form of loans for disaster recovery and reconstruction. This model perpetuates an unjust cycle where those least responsible for climate change are forced to shoulder its costs, pushing vulnerable countries into a perpetual debt spiral.

Martha Bekele, representing development initiatives, raises her voice amidst these concerns, emphasizing the urgent need to address the massive adaptation finance gap.

Africa has already borne the brunt of climate-related losses, with annual costs reaching $7 billion between 2010 and 2019. Alarmingly, this figure could swell to $50 billion by 2040 under a high-emission scenario. Such a financial burden threatens to cripple Africa’s GDP growth, potentially siphoning off 2-4% annually by 2040 and an astonishing 10-25% by 2100. Urgent financial support for adaptation and loss and damage becomes not just a need but a lifeline.

However, the Adaptation Gap report of 2022 reveals a stark disconnect between financial commitments and actual needs. In 2020, international adaptation finance to developing countries amounted to $28.6 billion, a modest 4% increase from the previous year. Yet, adaptation needs stand at a staggering $340 billion per year by 2030, potentially exceeding $500 billion annually by 2050. Within Africa, adaptation costs alone are projected to reach $86.5 billion each year by 2030.

Widad Saddouk passionately adds her voice, calling for Multilateral Development Banks to play a significant role in addressing this crisis. Dr. James Murombedzi from UNECA underscores the need for radical surgery in the economic models of the World Bank and IMF and the establishment of an independent secretariat for the Loss & Damage fund within an existing UNFCCC institution.

The call for change is resounding. The World Bank and IMF are urged to reevaluate their funding policies for African nations, aligning them more effectively with the continent’s development agenda. The clarion call from the UNFCCC at COP 27 for Multilateral Development Banks to reform practices and significantly increase climate finance is a demand for substantive change.

On the front of loss and damage, the urgency is palpable. Modalities for operationalizing a loss and damage facility are yet to be conclusively determined. Advocates insist that funding mechanisms must uphold principles of equity and common but differentiated responsibilities (CBDR) and be driven by parties to the agreement.

Charles Mwangi, the Head of Programs and Research at the Pan-African Climate Justice Alliance highlights the serious lack of transparency in reporting climate finance. He proposes an independent secretariat within an existing UNFCCC institution, equipped with a robust and structured mechanism.

The fate of our planet and the millions who call it home hinges on our collective resolve to bridge the climate finance gap, uplift the most vulnerable, and preserve a sustainable future. In Marrakech, the stage is set for a global transformation that transcends borders and interests, in pursuit of a more just and resilient world.