Africa’s Net Zero Transition ‘Underfunded’

Africa is currently only receiving 12% of the finance it needs to successfully mitigate the effects of climate change and transition to net zero, according to a report by the think tank Climate Policy Initiative (CPI). It noted that around US$250 billion a year is needed to help all African countries install greener technologies and more climate resilient infrastructure. However, Africa received by US$29.5 billion in 2020, CPI said. There are a number of barriers holding back climate investment, the report said, noting a lack of skills, governance issues and currency risks, particularly across central African countries. The report said: “Harnessing climate investment opportunities in Africa will require innovation in financing structures and strategic deployment of public capital to ‘crowd-in’ private investment at levels not yet seen. Mobilising investment in African climate solutions at scale will require going beyond traditional financing approaches. Innovative climate finance structures can be deployed to improve capital efficiency and overcome the barriers to finance which have stifled investment to date.”

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