Climate Change Costs Africa Up to 5% of GDP, UN Climate Chief Says
Africa is facing severe economic losses due to climate change, with the impact costing up to 5% of the continent’s GDP, according to Simon Stiell, Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC). Stiell’s remarks were made during a meeting of African environment ministers in Abidjan, Ivory Coast.
Despite contributing minimally to global emissions, Africa bears a disproportionate share of climate-related damages. The continent receives just 1% of global climate finance, a stark contrast to the $1.3 trillion needed for effective climate adaptation and mitigation.
“Africa’s economic growth is being hampered by the climate crisis, which acts as an economic sinkhole,” Stiell stated. He emphasized the urgent need for increased investments to help African nations adapt to the effects of climate change.
Recent efforts have attracted new investments in climate projects, but African nations still receive a fraction of the global $100 billion climate finance pool. Only $2.6 billion of the $400 billion spent on clean energy last year was allocated to Africa.
The continent faces severe challenges including prolonged droughts and catastrophic flooding, which disrupt food production and drive up commodity prices. The situation exacerbates hunger and affects overall economic stability.
Looking ahead to COP29 in Baku, where new climate finance goals will be discussed, Stiell and other experts stress the need for innovative financing solutions. Hanan Morsy, Chief Economist at the United Nations Economic Commission for Africa (UNECA), suggested exploring debt refinancing and carbon markets as potential solutions.
The UN and African leaders are calling for a more equitable distribution of climate finance to support Africa’s climate adaptation and resilience efforts.
Source: CNBC AFRICA
