5 Major Facts about AFC’s Pragmatic Path to Net Zero

Date04 Jun 2022

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AFC’s Pragmatic Path to Net Zero

Introduction

The global sense of urgency for the need to combat climate change and its impacts is heightened as Climate change events worsens globally and continue to gravely affect and disrupt lives and national economies across the world.

“Climate Change is the defining issue of our time and we are at a defining moment. From shifting weather patterns that threaten food production, to rising sea levels that increase the risk of catastrophic flooding, the impacts of climate change are global in scope and unprecedented in scale.“

Without drastic actions taken, the impact of Climate change will remain an existential threat, which is projected to cause more devastating global consequences in the years to come. The current climate trajectory is predicted to force 100 million people into extreme poverty by 2030.

This article by Brickstone, reviews White paper published by Africa Finance Corporation (AFC) on Climate Changes and Impacts in Africa, and Way-forward – Securing a Pragmatic Path to Net Zero.

Climate Change in Africa & Way-forward : AFC’s Approach

According to the AFC, Africa, amongst other continents, experiences a unique and more devastating impact of Climate change despite its crippling energy deficit, thereby increasing the need for Africans to combat climate change with an urgency to develop the continent’s economies.

Africa’s inability to curb climate change and its impacts is a major threat to achieving UN Sustainable Development Goals. SDG7 – affordable and clean energy – remains out of reach for Africa’s people and is key to unlocking the other 16 goals.

For African nations to drive a greater effect in combating this challenge, AFC’s Pragmatic Path to Net Zero suggests that Africa nation leaders should focus on these three significant areas of change:

Localise by reducing wasteful journeys across the oceans by building circular local economies, and exploring the continent’s largely untapped resources – such as mineral reserves which are needed to meet rapidly growing global energy demand – to drive job creation and economic growth.
Rebuild by ensuring that Africa’s oceans and river defences, its agriculture and infrastructure can withstand the impacts of global warming – to develop local circular economies that will improve economic growth and job creation.
Finnovate by ensuring that Africa based institutions get access to essential climate funds through financial innovation. According to UNECA, Africa will need an estimated amount of US$18 Billion to US$30 a year over the next two decades to adapt to and mitigate Climate change and its impacts.

5 Major Facts about AFC’s Pragmatic Path to Net Zero

Summarily, here are 5 major facts about AFC’s Pragmatic Path to Net Zero:

Africa contributes less than 4 percent of the greenhouse emissions, yet it has borne the brunt of the most devastating impacts of climate change, making it the most vulnerable continent to exponential collateral damage, posing risks to its economies, infrastructure investments, water and food systems, public health, agriculture, and livelihoods.

The share of Africa’s GDP vulnerable to climate change is expected to increase to 50 percent by 2023 from 28 percent in 2018, impeding agricultural and labour productivity, and harming economic security and human health. Lack of resilient infrastructure is a contributing factor to this vulnerability.

Although Africa currently has a crippling energy deficit, carbon emissions could be further reduced by addressing dependency on unprocessed commodities like cocoa, cotton and copper through restructuring and localising.

Lack of resilient infrastructure is a major setback in improving climate change and its impacts in Africa. Without intervention, the UN Office for Disaster Risk Reduction projected that the costs of structural damage caused by natural disasters in Africa will increase to US$ 415 Billion a year by 2023 from between US$ 250 – 300 Billion now.

Africa needs stable, reliable and adequate supplies of energy including natural gas – which offers the most cost-competitive and flexible source of electricity – for the advancement of the development of the country and transitioning to cleaner energy.

Conclusion

The COP26 achieved a significant result in managing to preserve the Paris Agreement’s Ceiling for global warming, and African countries also made notable commitments in lieu of collectively improving climate change and its impacts across the globe.

Yet, COP26 fell short in many areas like inadequate funding for adaptation, tepid action on global emissions, and foot dragging on other financing.

As a result of these shortcomings, Africa needs a pragmatic agenda for addressing climate change while also developing its economies. Looking at a way forward, AFC’s Pragmatic Path to Net Zero suggest the adoption and implementation of these three pillars of success – Localise, Rebuld and Finnovate.

Download complete White paper here.

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