Financing Africa’s Low Carbon Green Economy Transition: Africa’s Climate Finance Needs

Year Published

2024

Contributing Organizations

Cambridge Institute for Sustainability Leadership (CISL)

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic

Transition Finance

Topic 2

Carbon Markets & Carbon Finance

Target Audience

Governments & Policymakers

MDBs/DFIs

Philanthropies

Advisors & Consultants

Banks

Relevant Geography

Africa

Europe

North America

Resource Description

This resource assesses Africa’s climate finance requirements to 2030, using NDCs and financial data to outline funding gaps, sectoral priorities, and options for mobilizing domestic and international finance.

Why This Matters

Africa emits only 9% of global GHGs but faces high climate risks. Scaling concessional finance, project pipelines, and domestic revenue tools like carbon pricing is essential to achieve NDC goals and enable sustainable growth.

Key Insights

Africa needs ~US$25 trillion by 2030, with 80% for mitigation and US$418 billion for adaptation
Current flows (~US$30 billion annually) cover only a fraction of the US$200–250 billion required each year
South Africa, Egypt, and Nigeria account for half of total needs
LULUCF accounts for nearly 1 GtCO2e of planned cuts but offers few development benefits or private finance opportunities
Renewable energy (271 MtCO2e) is cost-effective and attractive to investors but requires stronger grid and technical capacity

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