By Kaleb Nghishidivali
Nairobi, Sept. 7 – In an unprecedented gathering of African Heads of State and Government, the inaugural Africa Climate Summit (ACS) concluded with a resounding call for global action to address the climate crisis. The summit, held in Nairobi, Kenya from September 4th to 6th, saw the participation of global leaders, intergovernmental organizations, and various stakeholders including civil society and the private sector.
In a joint statement released at the conclusion of the summit, the African leaders put forth a series of proposals aimed at addressing the urgent need to unlock Africa’s vast renewable energy potential and tackle climate change. Chief among the proposals is a call for a new Special Drawing Rights (SDR) issue specifically allocated for climate crisis response, with a minimum value equivalent to the $650 billion allocated for the COVID-19 pandemic. The leaders argue that this significant financial commitment is essential to support Africa in its efforts to transition towards sustainable and climate-positive development.
Recognizing the importance of concessional finance, the African heads of state also stressed the need for better leveraging the balance sheets of Multilateral Development Banks (MDBs) to scale up concessional finance to a yearly total of at least $500 billion. This increased financial support would enable African countries to implement ambitious climate action plans and ensure access to affordable renewable energy.
The leaders further highlighted the importance of innovative approaches to debt management. They proposed the inclusion of “debt pause clauses” and called for an expert review of the Common Framework and the Debt Sustainability Analysis. These measures are aimed at providing flexibility and allowing countries to mitigate the burdens posed by debt, enabling them to focus on climate-related investments.
To pre-empt debt defaults, the African leaders also emphasized the need for new debt relief interventions and instruments. These interventions would include measures to extend sovereign debt tenor and introduce a 10-year grace period, providing countries with the necessary breathing space to strengthen their economies and invest in climate solutions.
In their comprehensive proposal, the African leaders underscored the importance of promoting inclusive international tax cooperation. They urged for decisive action at the United Nations to reduce Africa’s loss of $27 billion in annual corporate tax revenue through profit shifting by at least 50% by 2030 and 75% by 2050. By addressing this issue, African countries could mobilize additional resources to finance climate initiatives and achieve their emission reduction targets.
The joint statement also stressed the need to crowd in and de-risk private capital, suggesting the utilization of blended finance instruments, purchase commitments, and partial foreign exchange guarantees. These measures would help bridge the gap between available public finance and the significant investment required for climate-positive growth in Africa.
Furthermore, they called for a redesign of the governance structures of Multilateral Development Banks (MDBs) to ensure fair representation, voice, and agency for all countries. This reform is seen as vital for a “fit for purpose” system that addresses the unique challenges faced by Africa and allows for effective utilization of financial resources.
The African heads of state emphasized that while multilateral finance reform is necessary, it alone will not suffice to provide the scale of climate financing required to meet the emission reduction targets outlined in the Paris Agreement. The leaders highlighted the urgent need for international cooperation and financial commitments, as failure to mitigate climate change will put the global goal of limiting global warming to 1.5 degrees Celsius at serious risk.
The proposals put forth by the African leaders at the inaugural Africa Climate Summit highlight their determination to secure the financial resources needed to unlock Africa’s climate-positive growth and address the pressing challenges posed by climate change. Through these ambitious measures, Africa aims to lead the way in sustainable development, demonstrating the continent’s commitment to a thriving future for its people and the planet.
