(Ecofin Agency) - Africa needs to mobilize $3 trillion by 2030 to tackle the impacts of climate change. This urgent reminder was delivered by Josefa Correia Sacko, Commissioner for Agriculture, Rural Development, Blue Economy, and Sustainable Environment at the African Union Commission. She made this statement during the opening of the 12th Conference on Climate Change and Development in Africa (CCDA-XII) in Abidjan, Côte d'Ivoire, on August 30.

Hanan Morsy, Deputy Executive Secretary of the United Nations Economic Commission for Africa (UNECA), highlighted the difficulties African nations face in accessing necessary climate finance. Despite a 2009 international commitment to provide $100 billion annually for global climate resilience, only a fraction of the estimated $1.3 trillion needed has been raised. Furthermore, global funding for climate adaptation is declining, falling short of the doubling target set for 2025.

This challenge is compounded by the fact that since the Paris Agreement, major multinational banks have financed fossil fuel projects to the tune of $6.9 trillion. Meanwhile, Africa struggles to secure affordable and long-term resources. Except for a few countries like South Africa and Morocco and institutions like the African Development Bank, African bond issuers are seen as risky by credit rating agencies, leading to higher risk premiums.

Morsy called for financial innovation, suggesting solutions that won't worsen Africa's debt burden. She mentioned the African Continental Free Trade Area (AfCFTA) as a potential leverage point. Commissioner Sacko emphasized the need to prioritize grants over loans or debt.

Anthony Nyong from the African Development Bank stressed the importance of balancing investments in climate adaptation and mitigation to ensure resilient development in Africa.

CCDA-XII provides a platform for African stakeholders to discuss topics like climate finance, green growth, and regional cooperation ahead of the upcoming climate summit in Baku, Azerbaijan.

The stakes for the continent are significant. In 2024, despite some improvements, Africa's green financing market remains underdeveloped. From January to July, the continent raised $4.4 billion in ESG-compliant financing, compared to $287.1 billion globally or the $2.1 trillion raised by companies on global capital markets.

Africa's climate financing challenge is enormous, but it also presents an opportunity to innovate in financial mechanisms and strengthen international cooperation. The success of this mobilization will be crucial for the continent's future in the face of climate challenges.