ABIDJAN – Despite accounting for less than 4% of global greenhouse-gas emissions, Africa is increasingly at the forefront of the climate-finance debate, moving from the periphery to a central position as the world recognizes that the continent’s path to net-zero emissions must foster development, not constrain it. The Belém Package – the set of climate-finance and adaptation measures adopted at last year’s United Nations Climate Change Conference (COP30) in Brazil – while limited in scope, acknowledged the need for meaningful African input in designing climate solutions.
The inaugural ESG report by the African Export-Import Bank (Afreximbank), released during COP30, highlighted a shift toward African institutions taking the lead in supporting the continent’s economic development and climate ambitions. The report found that, rather than waiting for external solutions, African countries must industrialize, trade, and grow while forging a low-carbon future.
To unlock climate finance at scale, Afreximbank’s report emphasizes the need for African multilateral institutions to act as a coordinated force promoting a shared continental vision. The report highlights practical instruments, such as the Climate Change Adaptation Finance Facility, which could support mobilize sustainable investments. These instruments, supporting projects like solar farms in Cameroon and providing stable power to Nigerian businesses, demonstrate how decentralized clean energy can underpin Africa’s industrialization and economic competitiveness.
Facilities like the Africa Trade Transformation Fund are also seen as critical to addressing the continent’s twin challenges of a heavy debt burden and climate vulnerability. The Africa Trade Trust Fund, in particular, exemplifies project-driven instruments crucial to scaling up climate investment. Côte d’Ivoire, for example, recently submitted its Nationally Determined Contributions (NDCs) 3.0, outlining an ambitious objective to reduce greenhouse gas emissions by 33.07% by 2035, reinforcing its dedication to a greener and more resilient development model.
Effective climate action in Africa is inseparable from economic sovereignty and trade. Localizing green value chains, building low-carbon manufacturing hubs, and investing in climate-resilient infrastructure are not merely climate initiatives, but also nation-building projects crucial to a just transition. The Belém Package, approved by 195 Parties, included a commitment to triple adaptation finance by 2035, emphasizing the need for developed countries to significantly boost climate finance for developing nations.
However, systemic obstacles remain. Africa faces a staggering financing gap of $1.6 trillion to achieve the UN Sustainable Development Goals by 2030, underscoring the misalignment between the global financial system and the continent’s needs. African institutions are responding by developing de-risking tools and blended finance models, including concessional windows and trust funds, to attract private capital.
Nigeria’s Aba Integrated Power Project illustrates a holistic approach, delivering stable, clean gas power to small businesses, tackling emissions, boosting productivity, and strengthening local value chains. This reinforces the case for treating climate finance as development finance, answering the question of how economies can become both climate-resilient and globally competitive.
As Africa builds the necessary institutions for a sustainable future, advanced economies must honor their commitments by fully funding the Loss and Damage Fund, easing access to concessional finance, and treating Africa not as an aid recipient but as an equal trading partner. The question remains whether the global financial system can adjust to this new reality, and whether the Just Transition Mechanism established at COP30 will provide adequate guidance and support.
