African Nations to Benefit from $120 Billion Climate Finance Commitment at COP29

At the COP29 summit in Baku, Azerbaijan, ten major multilateral banks, including the World Bank, European Investment Bank (EIB), and Asian Development Bank (ADB), pledged $120 billion annually by 2030 to support climate resilience, with a significant focus on Africa and other vulnerable regions. Alongside this, $42 billion is dedicated to adaptation efforts that address the growing impacts of extreme weather on communities from Nigeria to Kenya.

Africa, responsible for less than 4% of global emissions, bears a disproportionate share of climate impacts, such as prolonged droughts, floods, and rising sea levels affecting livelihoods across the continent. This new financing commitment comes at a time when African nations are increasingly pushing for “climate justice,” urging developed nations to take greater responsibility in funding climate action.

Africa’s Demand for Climate Finance

In recent years, African leaders have voiced concerns over the continent’s underfunding in global climate finance, despite facing some of the world’s most severe climate risks. According to the African Development Bank (AfDB), Africa will need $2.8 trillion by 2030 to meet its climate goals. The new $120 billion annual commitment is therefore crucial, although multilateral banks acknowledge that more needs to be done.

Nadia Calvino, President of the EIB, highlighted that private sector involvement is vital in closing the financing gap, with businesses recognizing the unsustainable costs of climate inaction. “We can spend time just discussing issues, but I think it’s better to get on with it and work as best as possible, together to mobilize green finance, public and private finance, and have maximum impact on the ground,” she said.

In Africa, adaptation needs are particularly pressing, with agriculture, energy, and water sectors facing severe disruptions. The United Nations Environment Programme (UNEP) estimates that the annual gap for adaptation funding is between $187 billion and $359 billion, and African countries are on the front lines of this funding shortage. Adaptation financing will be vital for initiatives like climate-smart agriculture in Kenya, flood defenses in Nigeria, and renewable energy projects across sub-Saharan Africa.

The African Union, alongside the African Climate Foundation, has repeatedly highlighted the need for direct investment in the continent’s infrastructure to enhance climate resilience. With COP29 underway, African delegates are urging that these funds be accessible to local projects that directly benefit African communities, addressing the inequities that make the continent especially vulnerable to climate-related disruptions.