Africa to fall $2.5 trillion short of climate finance needs by 2030

Africa to fall $2.5 trillion short of climate finance by 2030

VICTORIA FALLS, March 4, 2024 – A UN economist has projected Africa will face a USD 2.5-trillion deficit in climate finance by 2030, Reuters reported on Monday.

In comments at the Economic Commission for Africa Conference in Victoria Falls, Zimbabwe, United Nations Economic Commission for Africa chief economist Hanan Morsy said Africa’s clean energy sector needs USD 2.8 trillion of investment by 2030.

“We end up in a vicious circle with investment shortfalls increasing exposure risk and worsening impact, further eroding fiscal space and raising finance costs,” Reuters cited Morsy as saying.

Africa contributes a disproportionately minor share of carbon emissions, yet stands to suffer the greatest impacts of the climate crisis.

Climate change costs African countries 5% of GDP each year, Morsy said.

The continent’s installed solar power capacity reached 16 GW by the end of 2023, according to the Africa Solar Industry Association.

By comparison, China, which has a population of around 1.4 billion to Africa’s 1.2 billion, had 392 GW of installed solar capacity at the end of last year.

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